Any kind of mistake you make while paying back your personal loan EMIs can have two effects. If you don’t pay your EMIs on time, the lender will charge you late fees, and your credit score will also go down. Also, not paying EMIs over and over again leads to the worst-case scenario of loan default which reflects in the HDBFS Loan Statement.
Since a large number of people have trouble paying back their personal loan EMIs in the same way, it’s important to know what you can do to avoid going into default. Here are the best ways to handle EMIs, make sure you don’t default on your personal loan, and protect your financial health:
Sell any fixed-income investments that aren’t going toward important financial goals.
When it’s hard for HDBFS Bank Personal Loan borrowers to pay their EMIs, one of the first and most important things they can do is find their fixed-income investments like recurring deposits, debt funds, or fixed deposits that aren’t set aside for important financial goals. Most of the time, the long-term returns on these fixed-income investments are lower than the long-term returns on other asset classes, especially stocks. Also, the interest earned on these kinds of investments is usually much lower than the interest rate charged on personal loans and even the cheapest loan options available from lenders. So, selling your low-yielding fixed-income investments can help you out if you are having trouble paying your personal loan EMIs. This can help you avoid defaulting on your loan and putting a black spot on your HDBFS Loan Statement.
Ask the lender to extend the length of the HDBFS Bank Personal Loan.
Reasons like a drop in monthly income or a rise in an existing loan’s EMI due to a rise in lending rates, like personal loan interest rates, can put a strain on a borrower’s finances and make it hard for them to pay their existing EMIs. In this case, the borrower can ask the lender to extend the loan term since a longer loan term would also lower the personal loan EMI amount. This could help the borrower pay the lower EMI amount and avoid defaulting on the loan. Even though extending the loan term would mean paying more interest, borrowers can try to pay off the loan early whenever they have extra money to reduce the overall cost of interest.
Use the money in your emergency fund to pay your EMI.
To deal with financial emergencies, it’s important to set up and keep up a good emergency fund of at least six times your monthly fixed and recurring expenses, such as loan EMIs, rent, SIPs, etc. This fund is important because you never know what will happen in life, like losing your job suddenly or getting sick. Any such unexpected financial emergency can make it hard for a borrower to pay back their debt, which can also cause them to stop paying their EMIs. If you had a good emergency fund, you could get out of any of these situations. If you can’t pay your loan EMIs because you need money for something else, you might want to use your emergency fund to pay off your personal loan EMIs instead. This will help you avoid the inclusion of the world delay or default on the HDBFS Loan Statement.
Change where you get your HDBFS Bank Personal Loan if you want a lower interest rate.
For personal borrowers who are having trouble paying their EMIs on their current loan, switching to another lender via balance transfer is a smart way to lower their EMIs. Before choosing a lender, it’s a good idea to compare them on things like personal loan interest rates, loan terms, processing fees, and so on. Then, choose the lender with the lowest interest rate and the best loan service terms. If you did this, your personal loan EMIs would go down, and you would be able to pay the lower EMIs. If you decide to go through with the balance transfer, keep in mind that the new lender is likely to see your request as a new loan application and may charge you fees like a processing fee. So, make sure that the total amount of interest you’ll save by transferring your balance is big and that the fees you’ll have to pay don’t cancel out the benefits of transferring your balance.
Choose to combine your loans.
Borrowers often have trouble paying back their HDBFS Bank Personal Loan EMIs, especially if they have more than one HDBFS Loan Statement. During breaks in income or when money is tight, Even having to pay back multiple EMIs with different interest rates and due dates on time and regularly can sometimes be a burden on the borrower. These types of borrowers can choose to consolidate their debt, which means they would only have to pay one EMI at a lower personal loan interest rate instead of several at different rates.
For instance, people who already have a home loan can get a home loan top-up, whose interest rates are usually much lower than those of other loan types like personal loans. Borrowers can use the money from the top-up loan to pay off other loans early. This way, they only have to pay the EMIs for their home loan and top-up loan instead of the EMIs for several high-cost loans.
But people who don’t have a home loan but are having trouble paying back expensive loans like personal loans, business loans, etc., can look into secured credit options like loans against property or gold if they have the necessary asset.
Most of the time, the interest rates on these loans aren’t too high. If you get a loan from one of these options, you can use the money to pay off these high-interest loans early.
Most of the time, personal loans help us reach different financial goals or make up for shortfalls in our finances. And because it’s getting easier and easier to get loans as well as the facility of online HDBFS Loan Statement, many people end up paying off multiple loans, like a personal loan, a home loan, a car loan, etc., at the same time or at different times during their working years. Since personal loans are usually unsecured and have higher interest rates than other loans, it’s important to understand and follow the tips above if you want to make smart EMI payments.