At the need of the hour, a personal loan will always be the most opted choice as it helps you get cash urgently. Because of its flexibility and easy accessibility, personal loans are everyone’s choice. Most of the personal loans are unsecured and hence does not pledge for any asset as collateral.
Personal loan uses:
You can use a personal loan to buy consumer durables, plan your dream wedding, pay for your health treatment, consolidate your debt, pay for your child’s tuition fees etc. Whatever is the reason, you can use a personal loan for anything.
Repayment period of a personal loan:
The repayment period for a personal loan ranges between 12-60 months. To save money that you pay as interest, some people repay their loan in full before the tenure is completed. Some people use the entire tenure to repay the loan while some people prefer prepayment and some even make partial prepayments.
What is a personal loan prepayment?
In general, when you get a loan, you repay the loan in EMIs (equated monthly instalments) till the end of your loan tenure. However, few people might have surplus cash available with them, which is more than enough to close their loan by paying the outstanding principal. By doing so, they can save a huge amount of money which would have rather been spent as interest amount. Based on the lender chosen, prepayment penalty can also be charged.
What is a personal loan partial prepayment?
You can close your loan partially, which is referred to as a partial payment. In this case, you pay the principal amount partly, when the principal amount reduces, automatically the rate of interest also reduces. Hence, it provides an opportunity for you to save your money.
By paying a small amount, you can save a little amount of money as it helps reduce both your EMI as well as the interest rate. This is the main benefit for opting a personal loan with partial prepayment.
NBFC (non-banking finance company) provides personal loans instantly, as they quickly approve and disburses funds in an instant. There is one NBFC called Vivifi India Finance Private Limited with its loan offering product called FlexSalary. FlexSalary provides flexibility to the salaried professionals, so they can repay the loan amount either partially or completely.
With FlexSalary, it is very easy to apply for an online personal loan anywhere from a minimum amount of INR 4,000 to a maximum amount of INR 2,00,000. Irrespective of the location, you will be approved instantly on the same day you have applied.
Finally, with a good credit history and surplus repaying of your loan can also build a good credit score.