Personal loan is easily available nowadays. People are taking loans in a few minutes through digital platforms for home repair to marriage, travel or any big expense. But where it has become easy to take a loan, it has become more important to manage it properly. Because if not used wisely, then this loan can become a headache later.
Understand her terms before taking a loan
First of all, it is necessary to read its terms and conditions properly before taking any personal loan. For example, how much interest will be taken, in which tenure you have to pay, how much EMI will have to be given every month – understand all this in advance.
You on digital platforms like Moneycontrol Instant personal loan up to 50 lakh rupees You can find, in which offers are received from 8 different lenders and interest starts at 10.5% annually.
Before taking the loan, also find out how much the total repayment will be and how much it sits according to your monthly income.
Make budget and put EMI at the top
After taking a personal loan, the most important thing is to make budget. List all the expenses and income of your month and decide in advance that every month an amount of money is to be kept in the side. Nowadays there are many such apps and budgeting tools, which help to monitor expenses.
To ensure that EMI is not missed, set an auto payment from the bank. By doing this, late fees can be avoided and the credit score also has positive effects.
Keep an eye on credit score
Your credit score decides how much good loan offer you will get later. If you fill in EMI time, then the score remains good. Keep checking your score from time to time, so that if any disturbance is seen, it can be improved immediately. You can check credit score for free on Moneycontrol’s website or app.
Consolidate if many loans are running
If you are unable to manage more than one loan, then date consolidation; The loan can be a good option. In this, you can take a new loan by mixing all the old loans, in which interest can be reduced and EMI will also be cut from the same place. This makes the hassle of the repayment a little easier.
Be careful with hidden charges
Personal loans have many such charges that do not understand in the beginning – such as prepament fees or foreclosure charge. If you want to repay the loan quickly, then see in advance that it will not be charged extra. Put this charge with EMI so that there is no surprise.
Do not stop interaction with lender
If ever it feels that it is difficult to repay the loan, then talk to your lender instead of fear. Many times lenders can give some relief or help reduce EMI by increasing the tenure. Just tell this thing in time.
Plan future together
Personal loan is not only needed today, it also affects the future. So before taking a new borrowing, think whether EMI is fit in your budget or not. Also, make an emergency fund, so that if suddenly needed, there is no need to take a loan again.
Use financial tools correctly
There are many tools to manage loans in today’s digital era. From EMI calculators to the tools that understand the effect of prepament – everything is found online. There is also the facility to track loans and compare offers on platforms like Moneycontrol.
Finally, the matter is the same – take a personal loan only when the money is really needed and after that manage it with full responsibility. Only then will this loan help you, otherwise it will increase the trouble.
You on digital platforms like Moneycontrol Instant personal loan up to 50 lakh rupees You can find, in which offers are received from 8 different lenders and interest starts at 10.5% annually.
Summary
It is necessary to create the right strategies to manage a personal loan. These include understanding the terms of loans to making budget and giving attention to the repayment.
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Disclaimer
This fraction/article is written by an external partner and does not reflect the work of the editorial team of Moneycontrol. This may include references to products and services offered by Moneycontrol.
