Reduce your EMI and increase your savings with personal loans
The personal loans can be taken from any of the lenders as per the borrower’s choice. Personal loans can be taken by the borrower for any purpose to satisfy individual needs. Thus opting for personal loans is a better option rather than putting the money from your savings. The loans can be taken for tenure of 5 years maximum for the repayment of the loans. Thus the loans taken should be repaid on time to avoid the penalty being charged to the borrower. The personal loans being taken can be utilized for any of the purposes by the borrower as the bank does not restrict the usage of the loans to a limited purpose. Personal loans help an individual satisfy one personal needs and also help boost the sale of multiple products and services. The loans thus help individuals keep the savings intact and also the borrower can avail rebate on early repayment of the loans. The loans can be paid at attractive interest rates which can substantially help reduce the burden of the borrower. Personal loans are beneficial for many purchases related to electronic goods, opting for medical services, purchase of furniture, renovation purchase. etc.
The borrower should choose the lender wisely by surveying the terms & conditions of the lender and also surveying the interest rates charged by various banks. It can be a heavy loss to the borrower if they agree to the higher interest rates as the repayment value may increase drastically due to higher interest rates. The tenure for the personal loans is usually five years. The borrower can even opt for lower tenure while applying for the loans to become early debt-free. The banks also charge processing fees to the borrower while approving loans. Some banks also charge a pre-payment penalty in case of repaying the loans early. Thus the borrowers should be careful about the penalty charges, whether applied or not by the lender. The loans can be utilized for marriage purposes, medical purposes, fund a child’s education, renovation of the property, or travel purposes. The funds are processed within 48 hours in the offline mode and within a few hours in the case of online mode. The banks approve loans of only those customers whose CIBIL score is at least above 700 points, without which banks usually do not approve loans.
Ways to reduce your EMI and increase your savings
- Pay the installments on time. And in fact, pre-pay the installments of the loans which can help the borrower save money on the personal loans in case of the penalty not being charged by the lender.
- Instead of putting the money from the past savings the borrower can avail loans from the bank as personal loans and can keep the savings intact instead of replenishing them.
- The interest rates are being competitively being charged by the lenders as the competition is intense amongst the lenders for the disbursement of the loans.
- The CIBIL score should be proper in case of giving the application for the personal loans. The borrower can avail of special interest rates for the loans being taken in good CIBIL score as the bank may consider charging lower interest rates to the borrower.
- The borrower can invest the idle funds in the stocks, mutual funds, or SIP instead of spending. Instead, it is recommended that the borrower should avail of personal loans and do not utilize the funds which are there in the savings account. The money is there in a savings account can be utilized for the investment purpose instead of spending it and returns can be gained from the investment.
- The borrowers can improve their credit score by opting the personal loans and also mix of credits is more beneficial for improving the credit scores in case of timely payment of the loans.
Opting for personal loans is a better option instead of spending on personal loans expenditures from past savings. The loans taken should be repaid on time to avoid penalties being charged to the borrowers. Thus taking personal loans is better than putting the money from the past savings.