Understanding how to successfully return your existing debt can not only save you time, but it will also help you preserve more of your hard-earned money. You can pay off your loans in a variety of ways by analyzing your financial situation. This will minimize your debt obligation, boost your credit score, and allow you to significantly improve your financial stability. There are many mobile loan apps to not only help simplify the application process for personal loan, but also to help easily manage your loan.
Here’s a simple guide to help you add ease to your monthly EMI payments for your loan with the help of mobile loan apps:
Loans should be repaid with your savings: If you’re thinking about repaying a debt, the first place you’d look is your savings account. You can even use your savings to foreclose on the debt, but you’ll need a significant amount of money to do so. Focusing on the loan with the highest interest rate is a fantastic method to start paying off your obligations. You can easily use a loan app to manage and foreclose your loan effectively.
Personal loans are frequently utilized to cover short-term financial shortfalls. A personal loan, on the other hand, has an interest rate and a repayment period ranging from 12 to 60 months. As a result, while you were able to fulfill your immediate financial needs, you are now saddled with a financial burden that compels you to repay a portion of the principal amount borrowed plus interest. You will also be required to return the loan within a 12-month period. If you have sufficient finances, the best option is to foreclose on your personal loan. This can be done as soon as your loan’s lock-in period expires. Check your loan details on the personal loan app.
Consolidation of debt: This is another clever technique to deal with your persistent debt. If you have a number of loans, the interest rates will accumulate and become costly and time-consuming to maintain. You can consolidate all of your debt into a single loan against property to simplify repayment and make it more reasonable; for example, you can take out a loan of Rs. 5 crore, or greater if you’re eligible, and use it to pay off all of your previous debts in one go with a loan app. Furthermore, if you choose a secured loan, you can benefit from a large loan amount, low interest rate, and a long repayment period.
With a debt consolidation loan, you can combine all of your loans, including credit card obligations, into a single entity. Rather than making numerous payments at different interest rates, this method results in a single monthly payment at a set rate. In most situations, you will pay a lesser interest rate on your monthly installment with a debt consolidation loan, making it easier for you to better manage your finances. You can easily pay your EMIs, set reminders for upcoming payments with the personal loan app.
If at all feasible, lower the tenor: If you have a long-term loan, such as a mortgage, you can reduce the tenor as your income improves. It means you can shorten the tenor by a few months when you get your annual appraisal. This will slightly raise your EMI, but it will lower the total interest you pay on your loan. As a result, you will be able to repay the loan in a cost-effective manner over time. You can calculate your EMIs with the EMI calculator available on personal loan app.
Making extra payments in order to pay off the loan sooner: Another option is to make part-prepayments on your loan in addition to paying the regular EMIs. This payment is applied to your loan’s principal. As the principal amount decreases, the interest amount decreases as well. This will not only make your loan more reasonable over time, but it will also help you to repay it in a quicker period of time. To take advantage of this option, make sure your loan doesn’t have any prepayment fees or penalties. You can part-prepay your loan with the personal loan app.
How to apply for a Personal loan with the Bajaj Finserv loan app?
- Download and install the Bajaj Finserv loan app
- Register with your 10-digit mobile number
- Go to the offer section (For a pre-existing Bajaj customer, you can avail your loan offer in few easy steps) Its hassle-free, paperless and online.
- For new customers, click on the Personal loan tile on the home page, and enter your personal details, and your financial details. Once you are done, you will receive a loan offer within a few hours.
- You can also calculate your EMI of your loan with the EMI calculator on the app.