5 Ways to Plan Your Monthly EMIs on Instant Money LoansWhen you think of acquiring a loan, what comes to your mind first is how easily and quickly can it be repaid. Equated monthly instalments (EMI) is basically the breakup of a loan amount that financial institutions expect borrowers to repay timely. EMIs are calculated on the basis of three variables – loan amount, interest rate and tenure. These factors are flexible and can be set by the borrowers using EMI calculators to derive a well-planned EMI.
When EMIs are not planned in advance, it can lead to delay in loan repayment or missed payments for a long period. This irregularity in EMI payment affects the borrower’s credit score adversely, which can cause problems in future loan approval. Hence, ease off your burden of paying monthly instalments on instant cash loans. Here are top 5 ways that will help you to plan your monthly EMIs:
- Get Clarity on your Monthly Expenses: Calculate your income on per month basis and keep a track of the expenditures made. This simple calculation will give you a clear picture of how much balance amount remains every month that you can repay easily as EMI without any stress. Also, consider emergency cash spent or anticipated in future so that it doesn’t affect your EMI cycle.
- Create a Separate Bank Account: There are multiple purposes in life for which we save funds in the bank. For ease of calculation and accuracy of saved finances, it is better to hold different bank accounts for major purposes such as a different saving account for educational loan or a new account for home loan etc. This will avoid confusion in payment of EMIs, if you have taken more than one loan.
- Manage your Finances: Strike a balance between your expenses and savings. In a personal loan scenario, cut down on extra expenditures that will make repayment of EMIs easier. A good amount of savings will always help in easy management of EMIs.
- Check for Additional Charges on Loan: Some lenders have hidden charges that can add to the EMIs making it heavier to repay. Hence, borrowers should consider financial credit firms who are willing to offer minimal or zero prepayment charges.
- Go for Automated Payments: If bounded by a very busy schedule at work or home, it is better to set automated EMI payments. With this customization, borrowers will not have to pay the EMIs manually instead it will be deducted automatically from your account on the agreed date.
Besides, you can make use of the freely available EMI calculator tool to derive an EMI amount that suits your budget over the given period of loan tenure.Once a suitable EMI amount is derived, faster decision can be taken for loan application and disbursal.