4 ‘P’s to consider before choosing Personal Loan tenure
Personal Loan tenure is a time that borrower takes to repay the complete loan with interest. Well, tenure can affect your monthly payments if you don’t choose the right one. As we know personal loan comes with a higher interest rate so this is compulsory you shouldn’t extend your loan duration or tenure. You may see relief in monthly EMIs but extended tenure will make your pay heavy interest rates or can day you will pay additional money than an original amount.
Properly check your monthly budget: Before applying for a personal loan, you should run your vision to your monthly budget. After calculating your home budget you can decide, are you ready to take a personal loan or not or how much amount can I avail. If you think after calculating your home budget your repaying capacity is allowing you to apply for a loan, then you can take it.
Pecuniary prospects: If you’re a salaried person then this recommendable you should choose the shortest tenure with higher EMI every month. You may feel that you’re paying high monthly payments but in reality, higher EMIs with short tenure is saving your money and saving you from debt. You can also go for a long tenure but now you can calculate paying a higher interest rate on short tenure EMIs and paying a higher interest rate on long tenure EMIs grasp a huge difference.
Properly check your liabilities: Before grabbing a personal loan it’s important to consider your liabilities once. Other expenses of household expenses and your children education fees. Carefully choose a tenure which helps you manage both EMIs and your regular expenses.
Patiently choose tenure: We all know this fact that personal loan comes at the higher interest rate. Don’t go for a first option, this is important to check various options and compare the interest rates. Choosing tenure is a most important thing. Remember if your repayment capacity allows you go and fill up the personal loan application then you can carry on but if think the loan can affect your other expenses then make a pause.