How to Pay Loan Amount | How to Repay Loan Amount | How do I Repay My Loan Amount
In this article We will know that “How to Pay Loan Amount Online“. Loans are no longer taken only for buying a house, for children’s education or for travelling. Most customers are taking loans to meet daily expenses and for small purchases like consumer durables. Especially when people with poor credit scores take multiple loans at high interest costs, they end up burdened with high EMIs and are left with very little money left for emergencies and important purposes.
If you are also in such a situation, then the best way out of it is to take a Personal Loan at a lower interest rate and for a longer period and pay off all your small ongoing loans from that one loan. . One advantage of this is that instead of multiple loans, if you have only one loan, then you will not have to worry about the amount of EMI payment due, etc.
How to Pay Loan Amount Online
Why Personal Loan for Debt Consolidation?
There are many ways in which you can consolidate your loan, such as by getting a top up loan on your existing loan, taking a loan against property, or getting a loan against securities etc. Of all these options, personal loan is the most popular because it does not require any collateral/security. Additionally, personal loan approval is instant and the loan amount is transferred quickly. Some banks like Axis Bank and HDFC also offer pre-qualified/pre-approved loans with instant transfer of loan amount to selected customers with good repayment capacity and credit history.
Existing personal loan borrowers whose interest costs are high can also opt for personal loan balance transfer to transfer their existing loan to another bank/loan institution at a lower interest rate and longer tenure. Some banks/loan institutions also offer top-up loans to those who use the personal loan balance transfer option. Borrowers can use top up loans to pay off other expensive loans or meet other financial needs.
Information about taking a personal loan for debt consolidation is given below.
Step 1: Find out How Much Money You Need
To figure out how much you need, first know how much total debt you owe. Then subtract from that the amount that you can arrange using your existing investments or by borrowing from your parents, friends, etc. For this, banks should use investments that provide low returns like fixed deposits or debt funds because the returns on them are less than the interest paid on loans.
Step 2: Check your Credit Report before Applying for a New Loan
If you check your credit report before applying for a new loan, you will be able to know your current credit score and will also be able to detect and correct mistakes in your credit report. You can get your credit report for free once a year from the credit bureaus.
Step 3: Find the Best Personal Loan Offer
Once you decide the loan amount you need, find out about the best personal loan offers based on interest rate, repayment tenure etc. Find out about personal loan offers from banks and NBFCs where you currently have a deposit or loan account. Many banks/loan institutions offer personal loans at low interest rates to their existing customers. Then compare personal loan interest rates offered by as many banks/loan institutions as possible. You can also check offers with other banks/loan institutions.
Step 4: Prepay the Higher Interest Loan First
If you are not able to consolidate your entire outstanding amount, you should pay off the loan with the highest interest cost first. Those who have to pay off the credit card dues along with the loan should pay their credit card bills first. This is because high interest rates (finance charges) are charged on credit cards which usually range from 30% to 45% per annum. These may vary from credit card issuing institution to credit card issuing institution. Additionally, if the minimum due amount as stated in the credit card bill is not paid, late payment fees are also charged on the credit card outstanding amount, further burdening your loan.
Step 5: Make regular EMI Payments for the New Loan
After paying off your old loan along with the new loan, make regular loan EMI payments to avoid penalties and improve your credit score. Additionally, be sure to set up a standing instruction in your salary or other primary savings account so that the loan EMI is automatically paid from your account on time.
In this way You can Pay Your Loan Amount in 5 simple steps. How did you like this article of ours, do give us your feedback in the Comment Box. If you have any suggestion or question, you can also email us, as well as you can follow us on Social Media, whose link you will find below in Contact Us.
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