The primary reason behind availing a loan is often to help resolve financial crisis. Regardless, to ensure borrowers do not add on to their liability burden, they should adopt a systematic approach to repay their loan.
The pointers below highlight how to repay your loan easily.
- Increase The EMI With An Increase In Income
If the income of an individual increases during the tenor of their loan, they can use the extra cash to repay their dues faster. The simple way of doing so would be by increasing the EMI amount directed towards the loan taken.
- Refinance Existing Loan
To save on interest and paying off the loan amount before the due date, borrowers can refinance their existing loans. Availing a loan against property at a reasonable rate of interest would serve as a potent answer for how to repay loan effectively.
Similarly, using this amount of debt consolidation helps manage your finances better and allows easy repayment of multiple small-value loans.
- Convert Card Dues To EMI
Though credit cards extend interest-free credit for the first 50 days, they can be of significant liability if used recklessly. Defaulting on credit card bills accrues huge interest rates and further increases the burden of debt significantly. To avoid such an unpleasant situation, credit cardholders can request their card company to convert the accumulated card dues into convenient EMIs.
- Repay With Investment
Borrowers can also use their PPF account or insurance policy to borrow a loan against their existing balance. Nonetheless, individuals should only resort to this particular measure if they find it impossible to repay their loan easily.
Besides these ways of effectively repaying your existing loan, you can also resort to cost-cutting to improve your repayment capability and reduce your loan burden to an extent.