While pursuing any endeavour in life, you are likely to prepare and validate your options before starting on the next steps. In the same manner, you should carefully plan and prioritize your finances and validate financial products before going ahead with borrowings and investments. If you are a salaried professional, you can use a part of your monthly income in a prudent manner to access funds for fulfilling your life goals including travelling to your favourite destination or paying for your child’s education at a leading institution.
Empowering yourself with the right financial knowledge on concepts such as personal loans and their implications and usage can enable you to make smart decisions about taking on loans. You can learn more about loan products with expert guidance and support on online platforms like Finserv MARKETS in order to make a prudent financial decision.
Let us talk more about personal finance loans and how planning in time can enable you to access funds.
What is a personal finance loan?
A personal loan is an unsecured form of borrowing wherein you can access cash for urgent requirements in a matter of hours. Digital lending platforms such as Finserv MARKETS have made access to personal loan products a quick and convenient process. You can avail leading loan products such as the Bajaj Finserv personal loan from Finserv MARKETS at competitive interest rates. These personal loan interest rates can ensure that your repayment amounts are affordable and fit right into your budget. To secure a personal loan, you will need to provide the requisite documentation online including your identification proof and bank account statements. Here are a few tips in financial planning for salaried professionals to ensure that they are on track in terms of their finances-
- Think about ‘creditworthiness’
An important learning before you plan to take up a loan is to keep in mind that your creditworthiness can significantly impact the loan amount disbursed and the interest rate. You should ensure that your salary is adequate to allocate a part of it to Equated Monthly Installments (EMIs) to avoid loan defaults.
- Stick to a monthly budget
A budget can help guide your overall spending decisions. It is also important to plan your monthly budget. If you constantly breach your commitment to the budget, you might need to take a step back and redesign your budget. Look at some of the expenses that exceed your planned expectations. Also, make sure that your estimates are accurate by clarifying the amounts against bills and receipts or your bank statement.
You can track your budget in a notebook or Excel spreadsheet. These days, there are plethora of applications on your smartphone that can help you create and stick to budgets. With basic money management lessons, you can learn to manage your ratio of income to expenses. Ideally, you should save more than 10 percent of your monthly income and slowly increase this amount in a few months depending on its impact on your budget.
- Take into account any unexpected expenses
Life can be quite unpredictable, and expenses can arise from contingencies at any point in time. For example, you might need to make urgent home repairs or account for expenses related to the hospitalization of a loved one. Planning your budget in a practical and realistic manner can help you access a personal loan to cover for the expenses. Without adequate planning, you could find yourself in a difficult situation concerning your financial stability in times of emergencies.
- Set financial goals
You should pen down your life goals to prioritize your expenses. A smart plan would include short-term (under one year), medium-term (between one and five years), and long-term goals (more than five years). You can even stick them up on your fridge or wall to constantly remind yourself of your financial goals. Once you have the goals in place, think about how much you need to fund each of them.
Your long-term goals should take into account the resulting EMI payments from personal loans and other expenses. Focusing on your long-term goals can also enable you to pay your EMIs in time and avoid loan defaults.
If you keep all these factors in mind while planning for your finances, you can have an adequate part of your income saved for paying EMIs for your personal finance loan. The loans ensure that any immediate expenses related to contingencies or stemming from the pursuit of your life goals do not create a financial burden.
There are various types of loans available in the market including travel loans, education loans, home renovation loans, and more. You should speak with a trusted financial advisor or access 24×7 online support from the convenience of your home through a digital lending platform such as Finserv MARKETS. A beneficial way to plan and account for the Bajaj Finserv personal loan on Finserv MARKETS is with the use of an online EMI calculator. It can provide essential details on your monthly EMIs and the right tenure.
Also, read about the personal loan process.
Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus, when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!