6 Tips to Help You Manage Your Personal Loan Finance

Personal Loans are gaining popularity at a fast pace. These loans are unsecured credit instruments that can be used for a variety of purposes, without any end-use restrictions. If you find yourself in a financial crunch, you can avail of a Personal Loan finance. These versatile loans can be used for covering emergency expenses, high-ticket purchases, and even for debt consolidation.

While taking a Personal Loan may sound like a good idea, it is imperative to have a strategy in place for the repayment. Having a strong repayment plan will enable you to make your payments on time, while also allowing you to take care of your fixed expenses.

Here are some tips to manage your Personal Loan finance in a better way.

Create a Repayment Plan: After availing of funds, create a budget in which you can fit your monthly payments. Not paying EMIs can lead to chances of default. Hence, create a monthly plan that includes your expenses and EMIs. Try to refrain from overspending as it might disrupt your monthly budget.
Increase Your EMIs: You can choose to increase your EMI amount in case your income increases. This will help you finish off your Personal Loan finance repayment sooner.
Consolidate Debt: Debt consolidation is a process of combining multiple payments into one to make debt repayment easier. If you have multiple ongoing loans, you can choose to consolidate them so that you don’t have to manage multiple payments, while enabling you to fit extra expenses into your monthly budget.
Make EMI Payments On Time: To make the repayment journey easier and stress-free, you can automate your EMI payments. The amount will automatically get deducted from your bank account, which will help you reduce late payment penalties.
Use Funds Consciously: If you are availing of a Personal Loan finance, use the funds consciously and for the intended purposes. Ensure that you are using the funds consciously. In case you run out of finances, you will defeat the purpose of taking a Personal Loan altogether. Hence, spend the borrowed funds for the intended purpose consciously.

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How to Apply For a Personal Loan

Applying for a Personal Loan finance has become easier than ever as lending institutions and NBFCs (Non-Banking Financial Companies) are offering online loan applications. These applications are easy to access and ensure the fast processing of loans. You can find the online applications at your chosen lender’s official website. Below are the steps to apply for a Personal Loan finance.

Step 1: Visit your lender’s official website
Step 2: Go to the ‘Personal Loans’ page
Step 3: Click on ‘Apply Now’
Step 4: Fill the online application form
Step 5: Upload the required documents
Step 6: Await verification and confirmation

Personal Loan Eligibility Criteria

Age: 24 years old at the time of application and 58 years old at the time of loan maturity.
Citizenship: The applicant should be a citizen of India.
Employment: Full-time employed with the state or central government, PSU, MNC, Listed, Unlisted Public Ltd., Private Ltd., LLP, colleges and schools, or companies that are listed internally.
Work experience: At least 2 years, with 6 months of stable employment with the current employer.
Monthly income: Net monthly take-home salary of a minimum ₹40,000.

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Documents Required for a Personal Loan

KYC documents: Aadhaar card or PAN card
Address proof: Passport, utility bills, or rental agreement
Income documents: Latest salary slip
Financial documents: Salary credit statement for the past 3 months
Employment proof: Official email ID confirmation or Employee ID card in case email id is not available

To Conclude

Personal Loans are credit instruments that come with no-end use restrictions and are collateral-free. Using an online EMI calculator can also help you create a budget that is aligned with your monthly payments. These tools are available online and give out an approximation of your monthly EMIs so that you can make a monthly budget accordingly.

If you wish to avail of a Personal Loan in Chennai, you can easily apply online at your lender’s website. Ensure that you have a healthy credit score to get your loan approved easily. In addition to this, collect soft copies of your documents in advance to complete your application process faster.