Personal Loan: Know Tips to get personal loan with low EMI

Personal Loan: It is common for salary earners to take personal loan when they need money suddenly in many situations like hospital emergency, children’s school-college fees, and festivals and other reason. Know Tips to get personal loan with low EMI.

While taking a personal loan from banks for urgent needs, knowing the important factors including interest rate, EMI can save you from financial problems. Important points to consider before availing a personal loan. There are many important points to consider before availing a personal loan.

Factors like interest rates charged by the lending bank or other financial institution, EMI amount should be noted. Borrow from banks that charge low interest rates as much as possible.

Important points need to keep in Mind while taking personal Loan:

The interest rates on the loan offered by the bank should be evaluated first. Choose the lowest interest rate available to you. If you have a high credit rating, you can negotiate with the bank or financial institution to lower the interest rate on the personal loan offered to you. While getting a personal loan, it is very useful to know not only the interest rates, but also the loan tenure, repayment options, loan processing fees, etc.

Choose fixed interest rate:

Generally there are two types of interest. One is a fixed interest rate and the other is a floating interest rate. If the RBI increases the repo rate, the interest on the loan will also fluctuate. By opting for a fixed interest rate, your loan interest rate will remain constant even as repo rates fluctuate. If you opt for floating interest, you have to pay the increased interest along with your loan EMI. It is better to opt for fixed interest in personal loan.

Borrow only as much as you need:

Consider your financial situation and borrow only as much as you need while taking a personal loan. Determine the EMI number after calculating how many months the loan can be repaid. If you borrow more, you will have to pay EMI and unnecessary interest. Borrowing very wisely can ultimately reduce financial stress.

How to calculate EMI before personal loan?

Before taking a personal loan, it is important to first calculate the amount of loan and the amount of EMI to be paid. Monthly instalments should be estimated accurately. In this case, take the loan amount, interest rate and loan tenure into consideration. Calculate it all. Calculate the loan and interest offered by banks on the same basis.

Thus, there are options on Bajaj Finserv, HDFC, IDFC websites to calculate loan, interest, EMI. Failure to repay the loan on time will affect your credit score. Those who make such calculations before taking a loan can avoid financial problems ahead.

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