One might think that it is not possible to save money while availing a financing service. However, when it comes to personal loans, you can try and save a bit extra.
By this, we mean utilizing methods which will allow you to reduce expenses related to your borrowed personal loans.
Even though this financing service is easily available, it can set you back financially. This happens mainly because of interest rates on personal loans.
When compared with other finance generating options, personal loan interest is high for borrowers. Moreover, a good CIBIL score can also not change the situation. By keeping these simple points in mind, a borrower will not only be able to reduce his expenses. But will also be able to save the money and utilize it for something useful.
With this article, you will read about five personal loan money-saving hacks, which are easy to remember.
1. Frequent Payments
The first method that can allow you to save extra on your online personal loan is by making frequent payments. We all know that finding low interest rates personal loan is difficult. This means, the more you stretch your borrowed loan, the more interest you will pay. Hence, opting for a frequent payment system will make sure, that you save on interest charges as well.
2. Using auto-pay function
Missing out on a personal loan payment is not that uncommon for borrowers. There are times when it can skip your mind due to workload or something similar. For dealing with this situation, using an auto-pay function is highly recommended. By doing so, you will be able to eliminate additional charges that are levied for missing an EMI. Moreover, scheduling these payments is also easy with the help of the net banking or credit cards.
3. Consolidating loans
The last thing that a borrower wants to do is switch from one lender to the other. But if you can achieve a better interest rate for a financing service, then doing so will make a major difference. For example, imagine that your current personal loan lender charges you 25% as an interest rate. However, you find a lender who may offer a personal loan at 18% interest later. In this case, refinancing or consolidating your current loan is the way to go.
4. Balance transfer
If you have managed to finish most of the tenor of your personal loan, then you can even opt for a balance transfer. According to personal loan eligibility criteria, a borrower can easily transfer the remaining balance of their loan to a credit card. However, this can only be done in the last phase. By doing so, you may be able to cut down the interest rate or receive a completely free payment option.
5. Early repayment
The last option might also be the most common one. In case you have a chance to make early repayment of your personal loan, then you should consider it always. This will save you from paying a high percentage of interest for those additional months.
NBFCs are known for providing pre-approved offers on financial services like personal loans, business loans, loan against property, and EMI finance. By using these deals, borrowers can make the loan process completely hassle-free and fast.
If you want to acquire a personal loan instantly, then unlock your pre-approved loan offers today by submitting your basic details.