Ultimate Tips To Repay A Personal Loan Hassle-Free On A Salary Try

A personal loan is an accessible and popular solution to get additional cash for all your requirements. Moreover, you get the funding at attractive interest rates and flexible tenure options, making repayment easy and hassle-free.

However, as a salaried applicant, efficient planning is crucial in ensuring you can repay on time and without straining your monthly budget. So, read on to know how to smartly repay your personal loan with your salary.

Evaluate Monthly Expenses

Keep track of all your income sources and expenses to create an effective repayment strategy. Consider various bills, utility bills, insurance premiums, rent, credit card bills, and other recurring expenses first. Then see how much you make in a month – see if you rely on your salary or also earn from freelancing or from investments.

Doing this will make it easy to calculate how much disposable income you have. Based on this, you can adjust your personal loan EMI and ensure you can repay your debt without any financial strain.

Pay More Than the Minimum

When it comes to loans, you pay in EMIs, which becomes your minimum due. If you pay more than the minimum due on your personal loan, the additional amount will go towards the principal amount.

Doing this will help reduce your overall outstanding balance and allow you to close your loan before the tenure. One way to do that is to round off the EMI amount. So, if your EMI amount is ₹3,758, you should pay ₹4,000.

This way, the additional ₹242 will be deducted from your principal amount, reducing your debt. While this amount may seem small on a monthly basis, it can have a significant positive impact on your repayment in the long run.

Another option is paying a substantial amount over and above your yearly repayment every once in a while. For instance, if you get a yearly bonus and have no major expenses coming up, you can put it towards personal loan repayment.

This also helps the same way that rounding up your EMI amount does. However, consider the costs associated with making an extra payment before you proceed.

Reduce the Loan Tenure

If you get an increment or land up with additional funds, utilise them to pay off your personal loan faster. With a higher salary, you can pay more towards your personal loan EMI. You can do this by requesting your lender to restructure your loan and choose a shorter tenure. 

By opting for a shorter tenure, your EMIs may rise for the remaining tenure, but your overall interest dues will fall. In addition, the lender may reduce your interest rate. This way, you can pay your loan earlier and save more in the long run.

Consider Debt Consolidation

Debt consolidation is a smart repayment option that makes paying your loans more affordable. Consider this option especially when you have multiple loans.

With a debt consolidation loan, you merge your multiple loans into a single loan and eliminate paying multiple instalments and streamline your repayment. This way, you can easily track your repayments and lower the chance of missing one.

Simply apply for a debt consolidation loan for the amount of outstanding loans and foreclose your other loans. Be sure to check the additional costs associated with foreclosing to ensure you save and do not pay out of pocket.

Opt for a Balance Transfer

Interest rates are a crucial factor in determining the EMI amount and total cost of borrowing. Therefore, opting for the lowest interest rates is better to minimise the payable interest.

However, the interest rates may change, and you may notice another lender offering a better deal. During such instances, you can consider the balance transfer option. With this facility, you can transfer your outstanding personal loan amount to a lender with better repayment terms. By getting better terms, you can lower your EMIs and this can help you repay comfortably.

With these options, managing personal loan repayment on a salary is easy.

On the Bajaj Markets App, you can easily get an affordable personal loan as a salaried borrower from top lenders.

You can use the EMI calculator to compare offers and ensure you choose one that fits your monthly budget. Download the app from Google Play Store or the App Store and get started.