Personal loan is an unsecured loan, which almost every bank and non-banking financial companies (NBFCs) offer. It is used to meet different needs. Since the arrival of digital process, the demand for personal loan has been increasing continuously. Due to easy availability and low -trouble approval process, it has become a favorite option for those who need financial help immediately. However, the best benefit of this loan will be only when it is repaid quickly. Repaying the loan quickly saves interest and your financial planning is better.
Understand Personal Loan Reporting Schedule
It is important to understand your loan repayment schedule well before planning to repay personal loans quickly. It is said that you have to fill the EMI every month and how long. It is important to know it correctly so that you can do better planning. You also know from the loan repair schedule when and how much you have to pay. Most of the lenders offer flexible repair options, which fit according to different financial conditions.
Ways to repay personal loans quickly
Make Extra Payment: An easy way to repay personal loans is to make extra payment once a year. If you fill an extra EMI, it can reduce both your principal and interest, which will eliminate your loan quickly. If it seems difficult to give full EMI at one time, then it can also be deposited by dividing it into small parts. However, before taking a loan, check whether the lender gives you this facility or not and there is no penalty on it.
Choose Chota Tenure: Choosing less tenure for personal loan repair is also a good way. Although EMI is more in small tenure, but it has to give less interest. For example, if you choose a 3 -year tenure instead of 5 years, the total interest will be low and the loan will finish quickly.
Consolidate the loan: If you have many personal loans, then it can be a sensible decision to merge them into one. Under the date consolidation loan, all loans are converted into a single loan, which can reduce the interest rate and fill the same EMI. This reduces the loan burden and helps in repaying the loan quickly.
Refinens: If the interest rates are reduced after taking the loan, then you can refine it. That is, you can repay the old loan by taking a new loan at a lower interest rate than any other lender. This can reduce your EMI and the loan can end quickly. However, before refinance, see that there is no processing fee or prepament penalty.
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Do not miss Payment: If you do not fill the EMI, then your credit score may deteriorate and you may also have to fill the penalty. This may increase the loan tenure further. You can set auto debit to repay the loan on time, so that the EMI itself keeps cutting. This will also make your credit score better and it will be easy to take loans in future.
Track your progress and adjust the plan: If you want to repay the loan quickly, then keep an eye on how much part of your EMI is going to the principal and interest. From time to time, check your loan statement and consider increasing EMI according to your financial status or making extra payment.
conclusion
On Moneycontrol, you can get the best personal loan offer from the top lenders. Apply an instant loan and get an amount of up to Rs 50 lakh without any hassle.
Summary
By repaying the personal loan quickly, you can save a lot of money on the interest. For this, you can adopt extra payments, choosing a small tenure and consolidating the loan as well as other effective strategies.
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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.