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Repaying Back Personal Loan to Save Money

· Finance,Personal Loan

Most people prefer the use of a personal loan in times of financial crisis as they are quickly disbursed and helps eradicate financial issues without any hassles. Such a loan can be applied for online and once approved, the amount is disbursed very quickly. Owing to such features, personal loan has become a very good funding option.
 
However, caution needs to be maintained when repaying back such a loan. This is because if the installments are not paid on time, then it can do more harm than good, including leading to lowering of your credit score. Here are thus a few repayment options which if followed can prevent you from falling into any unnecessary hassles -
 
Part Pre-Payment
 
Part pre-payment is the facility that is provided by most lending institutions for repaying back most of their unsecured personal loans. This option allows you to pay a portion of your loan principal which either reduces the repayment tenor or the installment amount. This is thus a highly useful way of pre-paying a part of your loan and reducing your debt if you have some spare funds lying around.
 
Loan Balance Transfer
 
Let’ say that you had opted for a fixed rate of interest when you applied for a loan, but you now find that the rates have gone down significantly and so you want to change your interest rate to floating instead of fixed, but your lender is not allowing you to do so. Also, the services provided by your current lender are not up to the levels they used to be earlier.
 
In such a case, you can opt for a new lender using what is known as a balance transfer facility. Using this facility, you can change your lender to a new one and enjoy the lower interest rates and better services provided by the new lender. The lender may also provide you the option of topping up the loan amount. The increased amount can now be used for some other purpose.

Read Also: Few Personal Loan Repayments Options to Save Your Money
 
If you keep the above points in mind, you will surely be able to pay back your loan on time. Personal loans are a very effective way of reducing your financial burden. Many prominent lenders offer loan amounts of up to Rs. 25 lakhs which can be paid back in a period of 5 years. However, the terms and conditions, interest rates and even the loan amount sanctioned varies from one lender to the other.
 
For such reasons, ensure that you conduct a thorough search for the best lender and then decide which is the best one for you.

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