A Personal loan is a great way to finance your
requirements, especially in case of medical emergencies, comfort products (like
bikes, laptop, smartphones), planned trips, education or paying off credit card
bill or any other debt bearing high interest. Though in this pursuit it is also
important to track the burden of EMIs you are taking on your shoulder.

Nowadays, access to funds has become far easier
than before, lending institutions have not only increased but their conditions
Word have also lightened. People have become more open to taking loans for
their personal needs which they are getting without any collateral and in quick
time. A steady income and a decent credit score are good enough factors to
avail a personal loan. Thus, it becomes all the more important to manage EMIs
of personal loan and not fall prey to vicious debt circle.

Follow these tips to manage
Personal Loan EMIs:

Personal Loan EMI Calculator:
Use the Personal Loan
EMI calculator
to understand and differentiate three things;
loan amount, interest and tenure. It is a very useful tool to compare various
deals and determine which the best option is and also help you understand
whether you can pay the monthly EMIs for the desired loan amount. You can also
check eligibility through personal loan EMI calculator.

2. Tenure
One of the most if not the most, crucial
decision is choosing the tenure for which you will avail the loan. Some say
shorter is better as interest amount will be less, while others say for longer
tenure so that the loan amount can be distributed over longer period resulting
in lower EMIs. However, it depends on your own situation and how you want to
manage your debt on which the decision with regards to tenure should be taken.

3. Total
Make a list and calculate the total of all EMIs
that you have to pay each month. Make sure the total EMIs are at least less
than 50% of your monthly salary. Too many short period loans can put a lot of burden
on a fixed monthly salary.

4. Repay
Whenever Possible:
There can be a situation when you
have received a sudden or unexpected influx of funds like salary hike, bonus,
the maturity of FD or other instruments. Some banks charge prepayment fee
however, you should still make the repayment as the overall effect is

5. Check
and Maintain Good Credit Score:
You should keep a
regular check on your credit score and build a good one. Better a credit score
better is the chances to get a good loan deal. Poor EMI management can easily
hamper the credit score heavily which will not only affect your future loan
deals but also takes a long time to recover.

6. Never
Delay or Miss EMI Payment:
Delay or missed EMI payment
results in a penalty or late fee or both in some cases. In addition, it hampers
your credit score significantly, and as discussed above it is something you
need to avoid at all cost.

In case you have multiple personal loans or combination of different types of loans, you need to prioritize which loan can be repaid in full in the least amount of time, and aim to do it. In addition, if any loan has a very high interest then that should be prioritized for complete repayment. Do not even hesitate to make certain lifestyle changes to reduce the debt and avoid the situation of delay or missed EMIs. Lastly, loans which have tax benefits associated with them are a better pick especially in case of multiple loans.

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