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Personal loans can help bridge the financial gap when other options have been exhausted. An individual can use a personal loan to cover unexpected expenses or to fund a long-held goal. While they can be a great source of financial relief, you should, nevertheless, be aware that borrowing money comes with an associated cost and the responsibility of repaying it. Here are some tips to lower your EMI and make your personal loan more manageable:
Choosing the right loan tenure is important when it comes to managing your Personal loan EMI. A longer tenure means a lower EMI but higher interest costs, whereas a shorter tenure means a higher EMI but lower interest costs. It is important to find a balance between the two. A longer tenure may be suitable for those who want to keep their monthly payments low, but a shorter tenure may be suitable for those who want to save on interest costs. It is advisable to consider your budget before you choose the tenure. It will give you a sense of the monthly EMI you will have to pay.
Negotiating the interest rate can be a useful strategy to lower the EMI of a personal loan. The interest rate is the cost of borrowing money, and a lower interest rate can significantly reduce the amount of money paid back over the loan’s tenure. Additionally, a lower EMI can help borrowers manage their monthly finances more effectively and reduce the overall financial burden of the loan. It is essential to research and compare interest rates to find the best deal and negotiate with the lender to get a favourable interest rate.
When a borrower makes a prepayment, they are essentially paying back a portion of the loan amount in advance, which reduces the interest charged on the remaining principal. This can lead to a reduction in the EMI or a shorter loan tenure, depending on the borrower’s preference. It is advisable to understand the repayment terms and conditions set by the lender to avoid any unexpected penalties or charges.
Choose a Bajaj Finserv Personal Loan for a stress-free experience and tailor your loan payments according to your budget. Get approved for a sanction of up to Rs. 35 lakh with a flexible tenure of up to 84 months. You can also use Bajaj Finserv Personal Loan EMI Calculator to know your EMIs quickly by entering the loan amount, interest rate and loan tenure. Head over to the Bajaj Finserv website to know more about personal loans.
