How to Reduce Your Personal Loan Burden Effortlessly

How to Reduce Your Personal Loan Burden Effortlessly

04 Jan 2020
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A personal loan is a fixed amount of money borrowed at a fixed interest rate and repaid over some time. You can easily avail personal loan from a bank or Non-Banking Financial Companies (NBFCs). Personal loans are usually unsecured loans which means you are not required to pledge any collateral. The loan amount can be used as per your requirement, you can use it to finance your travel, cover medical bills and wedding expenses. A personal loan can be used for all your financial requirements. Some lenders might want to know what you will do with the money they lend you, but as long as you’ve borrowed it for a responsible and legal reason, you can do whatever you want with it.

This makes availing a loan an ideal option for all your financial needs. But before applying for a loan you need to make sure to consult with a trustworthy bank or financial institution and weigh all your options. A personal loan is one of the biggest liabilities, you have to tweak your finances to be able to repay it on time without any need to make a lump-sum payment. However, this might be stressful for your finances, there are ways to reduce your loan burden without going through any unnecessary stress.

Prepay your loan

Prepaying your loans with proper planning is not a difficult task. In case you receive some amount of money from other sources or generate some extra funds. You can use them to pre-pay your loan, this will not only relieve you from the burden of making monthly payments but will also help you save on the interest cost.

Prioritize your debt payments

All the best intentions of clearing your debts won’t get you far if you don’t know how much you need to pay toward them while still paying the non-negotiables like rent or mortgage, with your extra savings. To do this, you need to list down all of your debts and prioritize them according to their interest rates. You can start paying-off high-interest debt to receive the highest spare funds and low-interest loans to receive a minimum amount. If you have multiple loans and credit cards, then you need to be responsible for repaying the amount in a timely manner. It’s always best to free yourself of such debts as quickly as possible.

EMI payment

If you ever receive some extra income from your side business or a cash gift from your family and friends. Instead of splurging this money you can use it to pay those extra EMIs on your loan. Having multiple sources of income will strengthen your finances, this will help you in repaying your loan EMIs easily.

Avail a personal loan top-up

  • Personal loan Top-up facility is offered by the lender at attractive interest rates which are much lower than those charged against your loans. You can use the money to repay your loans. This will help you to save money on interest costs. You will also have to make fewer repayments and manage fewer loan accounts. A top-up loan can be taken by anyone who has an existing home loan with a lender. You can either approach the same lender or go to a different one. Moreover, a balance transfer of the home loan to the new lender may be required before opting for the top-up loan.

  • You can easily avail a top-up personal loan at Finserv MARKETS. Instant approval, quick disbursal, flexible tenures and attractive interest rates are some of the major benefits of availing a personal loan top-up at Finserv MARKETS. Therefore, if you are in need of additional funds even after availing a loan, a personal loan top-up at Finserv MARKETS can prove to be extremely helpful.

Repay debts with your existing investments

Your investments act as a cover against financial exigencies, you can liquidate your investments or avail a loan against them to repay your loan. The interest payable against a loan is much higher than what is received against fixed-income investments. However, this is an extreme measure and should be used only in case of an emergency.

Balance Transfer

Whenever you are in need of some extra cash, you can always apply for a loan. But personal loans, as easy as they may be to get, they usually have a very high-interest rate, between 15 to 20%. So, if you have been paying high interest on your loan, a loan balance transfer is a good option for you. Most banks offer a loan balance transfer facility with lower interest rates. If you have been paying your EMIs on time and enjoy a good credit profile, you can transfer your high-interest loan to a low-interest loan. This way, you can save on your interest cost and also reduce the amount of EMI that has to be paid.

Lower your monthly expenses

Even though your regular bills might seem insignificant, their cumulative effect might become a huge strain on your resources. Cutting down on your leisure and unnecessary expenses is a good way to save every penny. These savings can be used to repay your loan before time. This way you can lower the burden of your loan EMIs.

When you apply for a loan for the debt, you only need to handle one loan, pay one EMI, and remember one date. At Finserv MARKETS you can avail a personal loan without a guarantor. Before applying for a loan you need to check whether you are eligible for it. You can take the help of a Personal Loan Eligibility Calculator to check and calculate your loan eligibility criteria. The loan repayment process is quite convenient.

To calculate your monthly instalments you can take the help of an EMI calculator. All you need to do is enter the desired loan amount, the predetermined rate of interest and the fixed tenure of the loan. The complete loan application process is carried out online, hassle-free requires minimal documentation.

The process of loan application at Finserv MARKETS is quite simple. You can enjoy a higher loan amount with a Bajaj Finserv personal loan and repay it over the flexible tenure. Whether you want to plan your travel, wedding, or pursue higher education personal loan will finance all the expenses. You also get personalized pre-approved offers, instant approvals and flexible tenures of 12 to 60 months. Simple eligibility criteria, minimal and paperless documentation, flexible repayment options, prepayment facility, and round-the-clock assistance are some of the major benefits of availing a personal loan at Finserv MARKETS. So why wait? Avail a personal loan at Finserv MARKETS, and meet all your financial requirements with ease.

 

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”