5 Basic And Quick Ways To Repay Your Short-Term Loans
Personal loans are among the most sought-after short term loans that many borrowers go for. It comes with a flexible tenor of up to 60 months and offers a large amount of up to 25 lakhs.
Features like quick money access, faster loan processing and ease of usage of money make it beneficial for borrowers.
But still, many people don’t apply for short term loans such as personal loans. It is because they are unaware of the ways they can repay it.
If you have a small personal loan and want to know ways you can repay it quickly, then this post will help you out. Read on!
- Go for personal loan part or full prepayments
Most of the leading lenders in India provide you with the facility of paying part or full prepayments on your ongoing small personal loan. When you do that, then you can easily repay the short term loan like the personal loan quickly. Once done, you will be able to make small EMI payments, and your rate of interest will also reduce.
- Make extra payments
If you had some assets that you sell, then you can use the amount to make extra payments. Doing this will help you make your small personal loan even more affordable with the passage of time. Doing this will also help you repay the short term loan in much shorter time duration than before.
- Consolidate the debt
If you think that the small personal loan is taking too much of time and its interest rate is higher, then you can also consolidate it. Debt consolidation will also help you pay off all active loans. And your overall interest outgo will also decrease drastically. Now, you will only need to pay just one EMI instead of clearing too many in a month.
- Try to make 1-2 extra EMIs in a year
It is another trick that most of the borrowers don’t go for. Yes, if you have enough funds, then you can utilize it to make 1-2 extra EMIs for the current small personal loan. You can also use the annual bonus that you may be getting on your salary to do that. Paying 1-2 extra EMIs can help you clear your existing debt and pay smaller EMIs. This way, the cost of the loan will also go down as the rate of interest will reduce.
- Reduce the tenor of your short term loans
In case if you have availed short term loans like personal loans with a tenor of 5 years, then you can reduce it every time your income increases. Yes, it means that when you get your yearly appraisal, you can request the lender to readjust the tenor by a few months. Reducing the loan tenor may lead to an increase in your EMIs. But that will also mean paying a reduced interest rate. This way, you will be able to repay the ongoing small personal loan in a cost-effective manner.
Another method that may help you repay the loan faster is opting for the personal loan balance transfer to a new lender. The new lender should be offering you the facility to make prepayments, make extra payments, and reduce the loan tenor.
You are now well-versed with easy ways you can implement to repay short term loans without issues. Go ahead and implement one that best suits your preferences and never worry about short term loan repayments.