There are different types of loans available in the market and every loan comes with its own terms and conditions and its deadline to avail it. Have you ever thought which loan can be easily availed without any hassles? You are right a personal loan! This loan can be availed with ease compared to other loans and credit cards. Though it is one type of an unsecured loan, this is considered to be one of the hot selling loans. They can be availed through various banks and Non-banking financial companies. The only drawback this loan has is its high personal loan interest rate.
After considering all the factors associated to this loan, it is still one of the best financial products available there. You can use the loan funds as you wish and just because of its speedy approval process you can get this loan within hours if you are encountering any emergency financial situation.
There are many of us, who use personal loans for luxury expenses. This is absolutely bad practice, what happens is that you happen to receive various sales calls asking if you are in need of a loan, you think if there is an option available why shouldn’t I take it? You go for it, spend the loan amount and start thinking how would you repay the loan amount. You are smarter than you think and realize in an early stage that you have made a mistake opting for this loan. You start researching online and come up with the idea to closing the loan with smart repayment plans.
What is a smart repayment plan?
The lender while providing the loan gives you various options of repayment programs. These are different from the traditional ones. This helps you with a clear idea on timeline of repayment.
Today we will discuss various smart repayment options,
Step-Up Repayment option
In this payment plan, the lender allows you to make lower EMIs for a specific amount of time and then you can increase the EMI and start making payments. This is perfect for salaried people, who expect their salary getting hiked every year and they can increase the amount eventually.
Step-Down Repayment option
In this payment plan, you are allowed to make higher payments which contribute to the principle amount of the loan. After a while you are allowed to make small payments. This is ideally for people who earn well and have opted personal loan for luxury purposes.
Bullet Flexi EMI
This is one of the best repayment plans when it comes to personal loans. You can make bullet payment once in a year or twice in a year with the ongoing EMIs. This will help you to close the loan in no time and helps you build a better cibil score calculation. You are supposed to put it on paper to the lender that you will be making bullet payments on the mentioned time and date. Failing to do so will hamper your credit score and hurt your chances of a loan in the future.
Unlike Bullet payments, you can make partial payments with ease and no strings attached. For example you happen to receive a good amount as bonus you can just transfer hat amount as partial payment and that will contribute to your principle amount. The only difference is, you get to do this without signing a contract.
This is the best of all! Just make the full payment with some nominal foreclosure charges and have a peaceful life ahead without having a sword hanging down to your neck.
These prepayment schemes may look attractive to you and they are designed to help you out financially. Just make the payments on time and get your financial life sorted.