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January 31, 2024
5 Simple Tips to Better Manage Your EMIs
An instant Personal Loan comes to the Rescue in times of Financial emergencies. You can relax and breathe for a while. But, most of them find it hard to pay EMIs on time which takes a toll on their mental health and hampers their Credit Score.
We, at Nitstone Finserv, have come up with 5 Simple Tips to Better manage your EMIs without any frustration or Hassle.
Here are those 5 tips -
1. Evaluation and Budget Allocation
Evaluate your monthly income and allocate the budget as per your fixed expenses. Add your EMI amount as a priority in your Fixed expenses. The remaining amount can be sent to your savings account
Tip - Create a separate bank account dedicated to EMI Payment. Don’t use that amount for any other purpose. This will bring efficiency in paying EMIs on time.
2. Consider the Challenges before taking a Loan
Many people fail to pay EMIs on time due to high-interest rates. In the desperation of obtaining loans, we often overlook the challenges that come with it. So, Always check the interest rates, fees, charges, T&C, and offers that lenders provide on different occasions such as Low Interest Rate Personal Loans.
Tip - Increase or decrease the tenure as per your ability to pay the EMIs within time. Increasing the tenure leads to a lesser EMI Amount while decreasing the tenure leads to a Higher EMI Amount.
3. Avoid Debt Trap
Taking new loans, and adding additional liabilities while you still have an existing loan can make your financial journey quite frustrating. Non-repayment and Missed dates can decrease your credit score and get you into a Troublesome period.
Tip - Identify and set your priorities right in terms of financial needs. Take one loan at a time and repay it completely before applying for a new Loan.
4. Create a Specific Fund for EMIs
Financial planning and its implementation are quite different. No matter how well you plan, emergencies can arise anytime. Save up to 3 Months of EMI Payment to ensure that you don’t miss EMI Payments during an emergency.
Tip - Once you are aware of the fixed EMI Amount, directly allocate 3 times that amount for unforeseen circumstances. This is crucial to ensure that your credit score is not hampered.
5. Comply with the 40:60 Scheme
This scheme allows you to have financial freedom while paying the existing loan without getting into a Debt Trap. You can easily pay your loans without bothering yourself and your close ones by complying with this scheme. Avoiding mistakes while applying for loans can favour you in the long run.
Tip - Ensure that your EMIs are not exceeding 40% of your monthly income. This way you can take care of other expenses while still saving a certain amount. Be wise while deciding the tenure of the loan.
You now know the 5 Simple Tips to Better manage your EMIs while taking Instant Personal Loans to maintain your credit score, enjoy increased loan approvals, and have a financially well-balanced life.
If you are seeking an instant personal loan then -
You should consider Nitstone Finserv which provides Quick Approvals, Gold Loans and Instant Personal Loans disbursement within 24 hours and makes your journey hassle-free with endless financial opportunities.
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