A person can easily qualify for multiple personal loans if they possess the repayment capacity to pay for the loans from their income along with other expenses
Personal loans
Personal loans are taken by an individual in case of various financial emergencies. Recently, personal loans have gained immense popularity in the consumer market, and a lot of people are now interested to avail multiple personal loans too. A person can easily qualify for multiple personal loans if they possess the repayment capacity to pay for the loans from their income along with other expenses. However, before proceeding for a personal loan, one must make sure keep that they will be cleared within the tenure and prepare accordingly. So, here we have discussed how one can manage multiple personal loans:
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Pay EMI on time
The most important factor of a loan is the repayment. Paying your EMIs on time helps building a good CIBIL score and also maintaining a good relationship with the bank or the banking partners as well. When the EMIs are on time it ultimately adds to your goodwill with the lender and in case you feel there is a need for another loan in the future, then your application will be entertained accordingly.
Top-up plans
If someone has already got their personal loan approved and urgently require another loan, there are multiple options available. Out of all the options, the safest option is availing a top-up from the already existing loan account and if in case it doesn’t suffice, one can go for a separate loan. The most important thing to remember is that multiple loans bring multiple EMIs, so the borrower must keep a track of their income flow and plan accordingly.
Think before you spend
When there is a specific amount going towards the loan instalments, it is advised that the borrower plans their budget around it. In such turbulent times, it is always advised to not splurge unnecessarily and save as much as possible during the entire repayment period. A good amount of savings will not only support during an unforeseen event but may also help in prepaying loans and saving additionally on the interest payment.
Restrain from using Credit card
When you are already under multiple debt, and go on to creating additional debt via a credit card, it can be considered a high risk situation and might affect an individual’s financial security. Those who take it lightly must remember that the interest being charged on a credit card is in the range of 35-40% p.a. So, if a borrower is accumulating additional debt it will ultimately force the borrower to make higher payments, and exhausting all the savings for a month or more.
Focus on pre-closure whenever possible
For those who really want to excel financially and keep it as per the plan, it is highly advised that a person organizes all of their debt in a way that they avoid any kind of default. If you have extra funds, you might consider pre-closing the loan but make sure that you pre-close only one loan at a time. This entirely depends on the number of loan accounts that one has availed so far. While you plan on pre-closing a loan, always make sure that you pre-close the loan with the highest interest rate at priority and then proceed for other loan accounts.
With the information provided above, it is quite prudent that you make the repayment a priority. A Personal loan repayment should be of utmost importance after the credit card outstanding payment. It is also advised that while you plan and repay the loan, control the expenses you incur on the credit cards to avoid additional debt. If a persona fails at making payments against the loans they have taken, it can have a bad impact on the individual CIBIL score and no one would want to land in such a situation.
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