Personal loans

A quick guide to managing multiple personal loans as suggested by Andromeda

A person can easily qualify for multiple personal loans if they have the repayment capacity to pay the loans from their income and other expenses.

Personal loans

Personal loans are taken out by an individual in the event of various financial emergencies. Recently, personal loans have gained immense popularity in the consumer market, and many people also want to avail several personal loans. A person can easily qualify for multiple personal loans if they have the repayment capacity to pay the loans from their income and other expenses. However, before proceeding with a Personal loan, you have to make sure that they will be erased in the mandate and prepare accordingly. So, here we have discussed how one can handle multiple personal loans:

Pay EMI on time

The most important factor in a loan is repayment. Paying your EMIs on time allows you to build a good CIBIL score and also to maintain a good relationship with the bank or banking partners. When EMIs are on time, it ultimately adds to your goodwill with the lender and in case you feel there is a need for another loan in the future, your application will be processed accordingly. .

Charging plans

If someone has already got their personal loan approved and urgently needs another loan, there are several options available. Among all the options, the safest option is to benefit from an addition to the already existing loan account and if this is not enough, one can opt for a separate loan. The most important thing to remember is that multiple loans result in multiple EMIs, so the borrower should track their income stream and plan accordingly.

Think before you spend

When a specific amount is earmarked for loan disbursements, the borrower is advised to plan their budget accordingly. In these turbulent times, it is always advisable not to splurge unnecessary and save as much as possible during the entire repayment period. A good amount of savings will not only support during an unforeseen event, but can also help to prepay loans and additionally save on interest payments.

Refrain from using a credit card

When you already have several debts and continue to create additional debt through a credit card, it can be considered a high risk situation and can affect an individual’s financial security. Those who take it lightly should remember that the interest charged on a credit card is in the range of 35-40% per year. Thus, if a borrower accumulates additional debt, it will eventually force him to make higher payments and exhaust savings for a month or more.

Focus on pre-closing whenever possible

For those who really want to excel financially and keep it according to plan, it is strongly advised that a person arranges all of their debt in a way that avoids any type of default. If you have extra funds, you may consider pre-closing the loan, but be sure to only pre-close one loan at a time. It entirely depends on the number of loan accounts one has availed so far. When considering pre-closing a loan, always be sure to pre-close the loan with the highest interest rate first and then proceed to other loan accounts.

With the information provided above, it is entirely prudent that you make reimbursement a priority. A Personal loan refund should be of utmost importance after overdue credit card payment. It is also advised that while you plan and repay the loan, control the expenses you incur on credit cards to avoid further debt. If a person fails to make the payments on the loans they have taken out, it can have a negative impact on the individual CIBIL score and no one would want to find themselves in such a situation.