Tips to Manage Personal Loan EMI Payments

Unlike most loans, a personal loan is free of collateral. If managed responsibly, a personal loan can be a great tool to tide over unplanned financial expenses. It can be used to cover medical emergencies, home renovation expenses, travel expenses, wedding expenses, or educational expenses. But, the tough part begins when the repayment period starts, especially if you’re new to borrowing.

To keep you away from defaulting on your loans and wrecking your credit score, we’ve compiled a few tips to help you manage your EMI payments.

Prepayments: Prepayment helps reduce the principal loan amount as well as the rate of interest. So, if you receive a bonus, hike in salary or a return on investment it is practical to reduce your debt repayment period as it helps you pay faster. At StashFin, you can avail a personal loan with zero prepayment charges (after the first 3 EMIs).

Short Tenures: A longer tenure not only increases the rate of interest but also affects your savings and income going forward. It is ideal to opt for a shorter tenure to rid yourself sooner from the burden of repayment. StashFin provides flexible loan repayment tenures starting from 3 months to 36 months, you can choose the one that is convenient to you.

EMI Calculator: To avoid impacting your credit score and repayment history, it is ideal to know the exact EMI amount you will be paying. Calculate the EMI with the help of The StashFin EMI calculator and borrow an amount that you can comfortably repay. At StashFin, you can avail personal loans ranging from Rs. 1,000 to Rs. 5,00,000.

Regular Payment: Avoid defaulting on your monthly EMI payments as this may lower your credit score and affect your repayment history. To be mindful of EMI deadlines, you can set reminders or choose auto payment options. With a good repayment history, there are higher chances of getting beneficial interest rates at StashFin.

Savings: It is advisable to set aside some savings and avoid over-borrowing. This may come in handy in case you’re unable to make your monthly instalments. It also helps maintain your credit score.