Repaying a personal loan, if planned well, doesn’t have to be a stressful experience.
You can follow the steps discussed below before signing up for the loan and after the loan disbursal to repay it conveniently.
Strategies to plan for your personal loan’s repayment
The following strategies can help you plan well for your personal loan repayment:
- Plan for your personal loan’s repayment before signing up for it: The best repayment strategy involves using a personal loan monthly EMI calculator. A personal loan EMI calculator like the one on IndusInd Bank’s site is a free online tool that can help you plan for your personal loan repayment. You can do so by calculating the value of your personal loan EMIs before applying for the loan. You must enter the loan amount, interest rate, and tenure to calculate the estimated EMI amount.
- Prioritise a personal loan with a lower interest rate: A lower interest rate translates to lower EMIs. You can make your personal loan repayment more affordable by opting for a low-interest personal loan. IndusInd Bank’s Instant Personal Loans offer attractive interest rates, making them an affordable option.
- Read the personal loan’s terms and conditions carefully: After approving your personal loan request, the bank will share a terms and conditions document with you that summarises all the details of the repayment cycle. You must carefully read all the terms and conditions mentioned in this document and make note of details like the interest rate, repayment tenure, EMI (Equated Monthly Instalment) amount, and processing fee. You must also note the charges for late payments mentioned in this document.
- Use the bank’s services to set up automatic payments: IndusInd Bank’s IndusMobile app helps customers automate their personal loan EMI payments, making repayments more convenient. You can use your bank’s mobile banking app to automate your personal loan EMIs. This can help you pay all your EMIs on time directly through your mobile banking app.
- If you have multiple loans to repay, repay the high-interest loans first: High-interest loans must be your priority if you have taken multiple personal loans when repaying them. You can also opt for the balance transfer option offered by banks to consolidate debt and get better loan terms to make repayments easier.
- Keep a check on your credit score: Banks and financial institutions approve a personal loan based on the credit score of the customer. Repaying your personal loan on time can have a positive impact on your credit score. On the other hand, missing your EMI payments can negatively impact your credit score. You must, therefore, keep a check on your credit score and take corrective measures to improve it if it is low.
To sum up
Repaying a personal loan can be a smooth and stress-free process if you keep in mind certain strategies. Use a personal loan EMI calculator to plan for your loan repayment before applying, and read the loan’s terms and conditions carefully. Consider automating your EMI payments, regularly checking your credit score, and prioritizing a lower interest rate.
IndusInd Bank’s Instant Personal Loans offer a flexible tenure, attractive rates, and follow a 100% digital application process. Apply today!
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