Tips to choose personal loan tenure

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Personal loan is a collateral-free loan that is offered on the basis of your eligibility criteria i.e. credit score, income, job type and other factors. For more information visit: https://upwards.in/emi-calculator

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Tips to choose personal loan tenure:

Tips to choose personal loan tenure

What is a personal loan?:

What is a personal loan? Personal loan is a collateral-free loan that is offered on the basis of your eligibility criteria i.e. credit score, income, job type and other factors. This type of loan does not require you to pledge any of your assets and is to be repaid on a monthly EMI basis. This loan is of unsecured type, therefore interest for this loan type is usually higher than secured loans. This loan can be utilized for meeting any unexpected financial events such as medical emergency, paying off education fee, home renovation or others.

Make a monthly budget plan:

Make a monthly budget plan This is one of the critical factors that you should consider as not doing so can further land you in debt trap. Therefore, jot down your monthly bills, other loan instalments and other household expenses to understand the amount you would be able to pay towards your personal loan EMI from your monthly income. Based on the left-over amount, choose a tenure that works well with your budget does not add any monetary pressure.

Consider your financial prospects:

Consider your financial prospects If you are a salaried professional and are due for a hike in few months, then you can opt to pay out higher EMI every month. Opting for a short tenure does attract high EMI but it also ensures that you pay off the loan early and your overall interest flow is reduced. Though a high loan EMI amount may strain your monthly finances for the first few months, but will be worth in the end.

Consider your existing liabilities:

Consider your existing liabilities When deciding on a loan tenure, consider the tenure of your other loans i.e. credit card loans, housing loan, auto loan and others. In addition to this, consider other monetary commitments as well. Then choose a term that helps you balance the existing liabilities to ensure smooth repayment of all the loan EMIs. You can use a personal loan EMI calculator to gauge the EMI amount for different tenure and varying interest rates.

Use an EMI calculator:

Use an EMI calculator Personal loan EMI calculator is a tool that helps you calculate your monthly EMI at varying interest rate and tenure. You can calculate the monthly EMI using different tenure options with various interest rates. This tool is highly beneficial to to compare loan offers from various banks and choose the one that fits your monthly budget.

Conclusion:

Conclusion Getting a personal loan is highly beneficial in today’s time as online lenders like Upwards have started offering such loans instantly. Applying for a personal loan on Upwards is simple and hassle-free process that can be done online through the app or website. On successful loan approval, you can choose the tenure for which you want to opt the loan and can get instant access to money. However, when getting a personal loan, follow a strict financial discipline to ensure it does not impact your creditworthiness or take a toll on your finances.