Once you get a loan, paying back the amount can, sometimes, be a quite a task. Large loan amounts are usually paid back in the form of Equated Monthly Instalments or EMIs. In most cases, people pay the hefty down payment by borrowing from other sources, and when it comes to EMIs, a dent is created in your finances. That is why extensive planning is required when you opt for EMIs. Now the question is, “How can you plan your EMIs?” Here is a list of smart methods to customise your EMI, so that it does not create any strain on your financial condition.

  1. Borrow Judiciously
    Nowadays, with loans becoming easily available, many people are looking for a large loan amount without even realising if they can afford it, simply because they are eligible for it. While a large amount might seem easily repayable, it doesn’t always happen according to plan. You must always take into consideration the possibilities for unfortunate incidents like a job loss or a medical emergency. It is advised to only borrow money to an extent where you can repay the amount comfortably. You can plan your budget for loan EMIs using a home loan EMI calculator or a personal loan EMI calculator. If you are looking for affordable loans, you can try Bajaj Finserv that offers the lowest home loan interest rates and personal loan interest rates.
  2. Go with a Higher Down Payment
    While a lower down payment option might look attractive, it is actually the forerunner to higher instalments. If you are planning to buy a house, instead of jumping at a low down payment offer, try to raise a higher down payment. This will eventually ease your burden and you won’t have to pay whopping EMIs for your home loan.
  3. Organise Your Spending
    If you have opted to repay your loan in the form of instalments, one way to avoid a stressful situation is to organise your spending till your instalments are settled. Check unnecessary expenditure on optional requirements and pool those funds to help repay the loan.
  4. Maintain Emergency Funds
    At some point of time or the other, there can be situations where you don’t have the finances to pay the instalment. In such instances, maintaining an emergency fund could help you repay the EMI, even if you run short of money. You must make sure that your emergency fund can be used for at least three to four months during a financial crisis.
  5. Invest in Mutual Funds
    Mutual funds are a reliable investment option, especially where savings are concerned. Instead of spending on discretionary areas, saving in a mutual fund allows you to get better returns in the long run. If you have taken a home loan, healthy savings for 2 to 3 years could play a big part in cutting down your EMI amount. Bajaj Finserv is a good choice for investing in mutual funds, as it offers a full range of products ranging from various asset management companies.

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