How to repay Personal Loans faster?

The funds from a personal loan can be used for multiple reasons. Applying for a personal loan is no longer a tedious task. It has become a quick and easy process, enabling users to apply for a loan online.

When availing a personal loan, it is important to know how to repay a loan quickly. Before you avail a personal loan, you should use a personal loan EMI calculator to ascertain the EMI amount to be paid. Based on this, you will be able to formulate a repayment plan that will fit your financial budget.

Here are 5 ways to know how to repay a loan faster:

  • Increase Repayment Amounts: An EMI calculator helps in calculating loan repayments that you would pay per month as EMI. One way to repay personal loans faster is to increase the repayment amount.

The repayment amount depends on the tenure as well as the interest rate. Since the interest rate is defined by the lender, you can repay the loan in a shorter tenure. A short repayment tenure means you would be paying a higher amount in your EMIs. 

You can also define the amount you want to pay. For a personal loan of Rs 2 lakh with 10% interest over a repayment tenure of 12 months, the EMI to be paid is Rs 17,583. Instead, you can add 10% to it and repay Rs 19,341 per month. This way you repay the loan faster. 

  • Increase Repayment Frequency: A repayment plan is calculated in a manner in which the borrower pays the lender once a month. Instead, you can repay the loan faster by increasing the repayment frequency. You can formulate an early repayment of the loan plan by paying 2 EMIs in the same month.
  • Pay Off Debt Before Saving: One way to repay the loan faster is to clear any existing debt before adding funds to your savings. Though saving is an important financial decision, clearing off debt should take priority. This way you will be able to free a large portion of your salary once the debt is cleared.
  • Pay Off Debt With Biweekly Payments: EMIs are paid once every month. Instead, you can come up with a biweekly repayment plan with your lender. Though you will be paying the same EMI amount, instead of paying it at one go, you will be paying it in two parts. Biweekly payments are known to reduce the interest amount paid as well as the tenure of the loan.
  • Find An Extra Source Of Income: If you have time on weekends, find an extra source of income. The money from this job can help you repay the loan quickly. You will have the option to make additional payments as well as increase the repayment amount with the extra funds. 

Calculating your loan repayments is important. Though an EMI calculator lets you know the amount you will need to repay every month, repaying a loan faster depends on you. Early repayment of the loan not only frees you of debt but also helps your credit ratings. This increases the chances of availing any personal loans in the future. 

At Finnable, you can choose your repayment schedule and have flexible EMI options. You also get to decide on the amount you wish to pay as EMI. Availing a loan from Finnable is easy. You can apply for a personal loan online and avail the funds within 6 hours of verification of documents. 

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