Paying High-Interest Rates on Your Current Personal Loan? Explore Smart Solutions Here!
Personal loans are known for their expansive reach and easy accessibility. Today, you can apply for a personal loan through a customised loan app in a few single clicks. These instant money loans are approved within minutes and disbursed shortly after. The easy availability of these advances has made it possible for many to avail financing conveniently. While getting a personal loan has become easier than ever, finding the best deal on your personal loan might need some expertise. Knowing the financial terms and understanding the fine print of these loans can help you save big on your loan payout.
Today, many borrowers find personal loans burdensome because of the high-interest rates. They are paying a higher rate than the average market rate because of negligence and ignorance. This not only keeps their EMI burden high but also makes their total interest to be paid very high. There are many smart ways in which you can bring down interest rates. Loan transfer, floating interest rates, and loan renegotiation are some of the ways to do it.
Keep reading to discover amazing tips for smart finances –
What is a Personal Loan Balance Transfer Facility and How Does It Help?
Lending institutions devise various ways to make borrowing comfortable and convenient for individuals. One of them is through refinancing the existing advance. A personal loan balance transfer is in fact a refinancing facility that allows you to switch your lender midway through the tenure for the benefits provided. The prime reason why individuals choose a balance transfer facility is that it allows them to refinance their outstanding loan principal with a new lender providing funding at reduced rates of interest.
Since the interest rate is cut down, it automatically leads to remarkable savings on the overall loan liability for the borrower. Some lenders also provide adjustments to other terms of service for the loan when accepting a balance transfer of the instant money loan outstanding. It further helps the borrower get favourable terms on the advance for easy repayment and better loan management. Some best loan apps in India provide balance transfer of personal loans with ease.
However, balance transfer also involves the payment of certain costs, which one must consider before opting for the refinancing option. For instance, you may need to pay a foreclosure charge to your existing lending institution when transferring your loan outstanding. Further, transferring the outstanding loan to the new lender also involves an entirely new loan processing and account opening, which thus involves processing charges as well. You must make sure to confirm all these aspects to know whether the balance transfer proves beneficial or not.
Plus, you must also check out whether you are timing your balance transfer right or not. Delaying too far into the tenure would only mean paying out a big chunk of interest accrued and may not turn out entirely profitable. So, make sure to use a balance transfer calculator to assess when to go for the facility.
How Can an Instant Money Loan Help?
If you are already servicing your multiple personal loans at a high rate, you can consolidate these loans and pay them off with an instant money loan available with ease today. These loans are not only easy to avail but also attract low rates of interest, which makes them affordable in the long run. Make sure to check your eligibility for the advance before applying for the loan.
Seasonal Offers on Personal Loans
Another way to go forward with interest rate reduction on your personal loan is to time your borrowing well and look out for seasonal offers. In India, festive seasons often mean big-budget expenses, and the financial ecosystem is all prepped up to provide the best funding solutions to enable individuals to meet their financing needs conveniently.
In tune with this, lenders bring out attractive interest-rate deals and discounts on personal loans to keep them attractive and affordable. You can thus borrow your advance around these times to strike the best affordability.
Other Ways to Reduce Personal Loan Interest Payable
You can also seek to reduce the total interest payable with the following tips and tricks in place.
– Choose a short tenure for repayment to accumulate low interest payable.
– Increase the total EMI payable with each passing year for overall tenure reduction and interest rate affordability.
– Choose prepayment facilities like part-prepayment or foreclosure to close off your loan earlier than the determined tenure and save on the total interest payable.
With lenders providing instant money loans, it has become easier than ever to get a personal loan at the best affordable rates. However, before signing the dotted line, make sure to compare the different financial institutions to know the best market deals. Also, document your employment and income stability to negotiate for the best rates possible on your personal loan and meet expenditures as per your suitability.