Loans are an extremely convenient way of meeting requirements and dealing with your financial obligations. According to data provided by the Reserve Bank of India, the percentage of unsecured loan products increased to 74.4 percent in March 2018 as compared to 73.4 percent a year ago. Allowing debts to mount can land your finances in a soup which can take months, sometimes even years to recover. Let’s consider the different options a borrower can consider to get rid of debt and work towards building better financial health.
Transferring the balance amount to a personal loan can help you avail lower rates of interest rates and a longer time frame in addition to availing a host of other benefits. In case your need is urgent, you can apply for this option at the earliest thanks to the quick online personal loan application process that is available these days..
In case you have missed payments, you will find that your debt increases due to the addition of penalty charges. Since this could affect your credit score, it's better to pay off the loan sooner rather than later. However, in some cases and up to a certain date, delays in making payments will not impact your credit score as long as you have discussed terms with your lender and they have agreed to give you the facility. For instance, many borrowers have availed the RBI Moratorium between Mar - Aug, 2020 in order to deal with financial stress and delay paying EMIs on their loans.
Must Read: How to Clear Credit Card Debt?
This is how a personal loan can help you clear off overdue payments:
Personal loans are collateral loans that can be borrowed for multiple purposes with minimum documentation. Candidates with an excellent repayment history can avail of a loan with a lower rate of interest. The eligibility for applying for a personal loan is as follows:
Must Read: How to Get a Personal Loan Using Aadhar Card
Choosing to apply for a personal loan will impact your future financial health and is not a decision to be taken lightly. Log into the website of the loan provider, calculate your personal loan eligibility first to understand how much loan amount you can apply for. Next, use the personal loan EMI calculator to understand how different interest rates and tenures can impact your EMI, based on which you can estimate your overall monthly obligations. It would also be a good idea to go through the lender’s policies as well as the schedule of fees and charges to understand the other factors required to make an informed decision.