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:

1. 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 Decision: 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 EMIs: 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 beneficial.

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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