Tips to avoid being a loan defaulter
Getting loans has gotten easier in recent times and there are several kinds of loans that we can avail depending on our needs. However, you need careful financial planning to repay your loan EMIs in a timely manner every month.
But what if a medical emergency or unemployment comes in the way of your repayment? What if you are not able to repay your loan EMIs on time? The biggest impact of you missing your loan repayment is on your credit score.
You can avoid this situation by increasing the loan tenor after discussions with your lender. This could help if the EMI burden is too much for you to handle. Increasing the tenor will help in lowering the EMIs and give you some breathing space. You can also negotiate with your lender and reschedule your EMI repayments or defer them for a particular time period.
Moreover, you should always have a sum of money equivalent to one extra EMI in hand as security against any unforeseen circumstances.
You can also consider transferring your loan to another lender in case the interest rates are too high. Switch to a lender offering you a lower interest rate and this will lower your EMI burden considerably.
Steer clear of being a loan defaulter by following these tips and maintain a good credit score.