When it comes to loans, perhaps even before the loan amount is finalized, the first thing that comes to a borrower’s mind is repayment. Monthly EMIs is one of the most pervasive ways through which financial institutions give out loans and ensure repayment occurs at regular time intervals. The amount of your Equated Monthly Installments (EMIs) depends on the amount of money you have borrowed. The sanctioned loan amount as a whole can depend on your income and your credit score. A combination of these along with how fast you choose to repay your loan at a given interest rate, are the factors that determine your EMI amounts. Monthly EMIs on Instant Money Loans can be stressful if you don’t plan ahead. This is why we have curated a checklist to help you plan your monthly EMIs on Instant Money Loans!
Here are 5 ways through which you can plan your monthly EMIs on Instant Money Loans!
- List down your monthly expenditure
One of the most important steps, when you’re taking on an instant money loan, is to take into account your overall expenditure and incoming income. This will help you determine the amount you can repay every month through EMIs without it being a burden on your finances. Chart out all your expenses to determine where your money is going, and cut down on expenses that can be cut down. Moreover, also take into consideration any emergency expenditures you might have, such as medical bills and family expenses, so that your instant money loans do not affect your regular and household expenditures.
- Keep a separate account for servicing the loan
If you desire a close eye on your expenses and need aids for planning better for your instant money loans, having different accounts for different expenses makes tracking easier, efficient, and accurate, as compared to having a single account for all kinds of expenditures. Additionally, you can also identify different patterns of your expenses!
- Reinvent how you approach your finances
‘Do not save what is left after spending, but spend what is left after saving.’ This is the golden rule that must be applied when keeping a check on your expenses. By eliminating unnecessary expenses, you pave way for a more stable instant money loan repayment plan with smoother monthly EMIs and lesser stress.
For example, if you spend 10% of your salary on eating outside every month, consider reducing it or find alternative ways to fulfill that need. The more you save, the easier and better your monthly EMI repayments will be.
- Look for minimal or zero prepayment charges
Loans can often have hidden charges that ultimately cost you more and make your EMIs unaffordable. It’s also not rare for people to come across an unprecedented lump amount. In such a scenario, you might be able to repay a majority of the entire loan amount to your lender. Hence, before taking instant money loans, look for companies that offer minimal prepayment charges. EarlySalary’s instant money loans come with zero prepayment charges if you decide to repay your loan earlier than the agreed duration. Plus, there are no other hidden charges!
- Prioritize your loans
Due to the convenient and hassle-free nature of instant money loans provided by lenders such as EarlySalary, you might take more than one loan. Even in our own experience, it isn’t uncommon to serve customers with both an EarlySalary loan and SBI loan, for example. Hence, it is important to prioritize these loans in order of the monthly EMI amount owed, time period for repayment, etc. Sort these loans to clear the loans with the highest interest rates first.
If a loan with a high-interest rate is not paid on time, it is likely to entail a heftier penalty compared to any other loan with a lower rate of interest. Moreover, repaying a loan with a high-interest rate over a long duration also means that you will be paying more interest as opposed to one with a low rate of interest.
EarlySalary’s Instant money loans are designed to provide rapid credit solutions in a hassle-free manner. With a sensible, modern personal loan option, you skip the lengthy paperwork and have access to attractive interest rates with no prepayment charges. Moreover, you can borrow up to INR 5 lakh and have it transferred to your bank account within minutes!
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