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.
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.
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.
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.
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 Bajaj 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 Bajaj Markets. Therefore, if you are in need of additional funds even after availing a loan, a personal loan top-up at Bajaj Markets can prove to be extremely helpful.
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.
Whenever you are in need of some extra cash, you can always apply for a personal loan. But personal loan, 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.
