Managing your financial needs can be approached in different ways. While using your savings and investments may seem like a viable option, it can potentially jeopardise your financial security in the long run. Alternatively, you can consider Personal Loans as a suitable solution. This option not only safeguards your investments but also provides the monetary capacity to meet all your financial requirements with ease.
Whether you require a Personal Loan of Rs 50,000 or more, flexible EMIs make the repayment process hassle-free. But what exactly are flexible EMIs?
What is flexible EMI?
Unlike fixed repayment schedules, flexible EMIs give you the freedom to repay at your convenience. This facility is designed to assist individuals who do not have regular sources of income or earn in phases. For instance, a seller of winter clothing may experience a surge in business during the winter season but have low and uncertain earnings for the rest of the year.
With a flexible EMI system, this business owner can take a loan and repay whatever amount they can throughout the year. During the winter season, when their earnings are substantial, they can choose to pay a higher amount to close the loan without any worries. This flexibility allows individuals to manage their finances efficiently and repay the loan without straining their finances.
Benefits of a flexible EMI system
Flexible EMIs offer several advantages over conventional EMI options, including:
· Better financial management
The most significant benefit of flexible EMIs is the freedom it offers to plan your finances and repay the loan accordingly. You can avoid the stress of repayment during periods of low earnings and use the flexibility to repay faster during periods of high income.
· No history of payment default
Unlike conventional EMIs, flexible EMIs allow you to plan ahead and manage payments effectively, reducing the risk of a payment default. This can help you maintain a clean repayment record and boost your credit score.
· No prepayment charges
With regular personal loans, a prepayment may attract additional charges. However, flexible EMIs do not have this condition, allowing you to repay the loan at your convenience without any extra cost.
· Helps to close the loan easily
Flexible EMIs also make it easier to close your personal loan. Rather than dragging out the repayment over a fixed period, you can pay off the debt in a few instalments as you see fit. This can help you save on interest payments and close the loan without any hassle.
With the overview of the flexible EMI system out of the way, let’s address another question, how much personal loan can I get on my salary or income?’ Well, the answer to this will depend on a few pointers.
What determines your personal loan eligibility?
Several factors determine your personal loan eligibility and the amount you can borrow, including:
· Your credit profile
Your credit score and repayment record are crucial factors in determining your Personal Loan eligibility. Lenders will review these aspects to assess your credibility as a borrower. A high credit score and a clean repayment record can increase your chances of approval.
· Your repayment capacity
Your annual income plays a significant role in determining your loan amount. Lenders will sanction loans that fall within your monthly instalment threshold, based on your repayment capacity. Including income from other sources can improve your eligibility.
· Current debts
Your current financial liabilities can impact your eligibility. Servicing other loans will reduce the amount of income available to repay a new loan, reducing the loan amount you are eligible for.
Parting thoughts
Irrespective of the loan amount, a flexible EMI solution can help you manage your loan better. Hopefully, this write-up has shed some light on this topic, and you can keep these suggestions handy to make an informed borrowing decision.