The Personal Loan is one of the most convenient financial products that are available to eligible salaried and business professionals to help meet various goals in life.

Leading online Personal Loan lenders provide the instant loan facility which can let you borrow as high as up to Rs.25 lakh with a wider tenor option and more.

When you plan to apply for online Personal Loans, you can expect it to fulfil many goals in life such as:

• Consolidate an existing debt

• Let you have a dream wedding

• Arrange funds for the higher education of your child

• Use the funds during a medical emergency

• For other personal needs

However, for availing the Personal Loan from a lender, you also need to know that lenders need some interest-based money to repay along with the EMI. Thus, calculation of the Personal Loan costs is vital before applying. In the context of the discussion, this write-up will help you manage your Personal Loan costs the easy way.

Easy Tips to Help Manage Your Personal Loan Costs

1) Opt for an Amount That You Can repay

Applying for a Personal Loan amount more than what your income can justify and you can repay will surely lead to the rejection of the application. Even if the application is approved rarely, you will have to pay the higher interest rate, processing fees and, other charges. On the other hand, it will also not be good for your monthly income as there will be a shorter tenor to repay the loan and that’s bound to affect your income. You can utilize the Personal Loan eligibility calculator available at a lender’s website to easily establish the total amount your income can afford and you may easily repay. The Personal Loan EMI calculator is another helpful tool to help you determine the total EMI that you will pay in advance so that you can make arrangements for it quickly. Both these online tools are available free of cost at leading lender’s websites.     

2) Opt to Make Frequent Prepayments

Suppose if you get the yearly performance bonus and more income, you can reduce the Personal Loan costs by making some prepayments out of them. By doing that, you not only reduce the overall loan obligation which helps you pay smaller EMIs in future, there are also charges for making prepayments by top creditors.

3) Pay Extra EMI

Another method to reduce your Personal Loan costs will be paying some extra EMIs during the tenor of the loan to lessen the EMI and also reduce the loan principal.

4) Maintain Your Credit Score

You should know that even maintaining a strong CIBIL score can help you reduce the cost of your Personal Loans at the time of availing the loan. How? Borrowers who have a robust Credit score can get the privilege of availing a lower Personal Loan interest rate. As a result, it can help them maintain the Personal Loan cost on the lower side.

5) Compare All Deals at the Time of Applying for the Loan

Another significant method to reduce the Personal Loan costs is by comparing multiple online Personal Loan offers at the time of applying for the loan at a third party website. After making the comparison, you can select a loan that can match your income and affordability to help you manage its costs in the future without hiccups.

Managing the Personal Loan costs are easy if you can implement the discussed tips.

If you want to apply for the Personal Loan online, check out pre-approved loan offers by Bajaj Finserv that you can unlock easily by simply sharing your basic details.