Taking a personal loan has become as easy as making a cup of tea. But major hurdles occur when you take a personal loan without planning its repayment.
Even before no prior repayment plan, many people choose the wrong lender, which results in high-interest rates and processing fees. That’s why you should find a legit lender for the personal loan. Click here if you are looking for a reliable lender to apply for a personal loan.
After getting a personal loan, you plan its repayment and find ways to clear the debt quickly. For fresher borrowers, it’s challenging, but with a few tips, you can repay your loan quickly. Below listed are simple ways you can consider repaying a personal loan quickly.
Foreclose Your Personal Loan: Usually, a personal loan comes with a repayment tenure of 12 to 60 months. However, you can foreclose your loan account if needed. Getting a personal loan will undoubtedly help you handle your emergencies, but it adds to your financial stress that no one ever wants in their life.
Hence, you can discuss with the lender and foreclose your loan account immediately. It’s crucial to note that not every lender allows foreclosure within the initial months. You can communicate with the lender or read the T&Cs before concluding your decision and closing your personal loan account.
Take Overdraft Facility: Most of you already know the benefit of taking an overdraft facility. Under the overdraft facility, you have to pay interest only on the withdrawal amount.
Hence, you can withdraw the required amount and clear your personal loan. You won’t require any other credit facility to add financial stress to your ongoing financial journey.
Opt for Debt Consolidation Loans: Applying for a debt consolidation loan suits best if you repay multiple monthly loans. A debt consolidation loan will help you clear all your current loans and manage a single loan account that makes it easy to manage.
Clubbing your ongoing loan accounts will eliminate the stress of reminding the payment date or keeping enough funds in your account.
Apply for Home Top Up Loan: If you have an ongoing home loan, you are eligible for a home top-up loan. You can get a higher loan based on the current property value and pending payments.
A top-up home loan always comes with a lower interest rate than a personal loan. However, your top-up loan majorly depends upon your amount of home loan EMI paid.
You can ask your lender for the home top-up loan and proceed with the agreement. Getting a low-interest rate with high repayment tenure gives you enough time to clear the debt in a single go or partially every month.
Transfer Your Personal Loan: You can also search for a lower interest rate lender. If all goes correctly, you can transfer the personal loan balance to the new lender, which will lower your interest and let you close the loan quicker.
You now have a handsome set of options that you can choose to clear your personal loan quickly. However, before making any financial move, you should research thoroughly and find the right option to proceed.
