There are many loans which are designed to fulfill your needs. A home loan can help you avail a home; similarly a car loan can help you get a car. Out of all the loans and financial products, personal loan is the one which is almost everyone's favorite. A personal loan can help you in many ways and also does not have a cap on how you use the loan funds. You can use the loan amount to manage medical expenses; use it for marriage expenses, etc. The lender will not be bothered on how you will be using the funds. Unlike other loans which are tailored for a particular purpose.
When it comes to personal loans, you can avail it within hours if apply for one. In some cases you may get the loan sanctioned within seconds, due to a preapproved offer towards your account. The pre-approved offer is introduced by the bank for you, provided you have a very good cibil score. Even if you have a low credit score you can still go for personal loan for cibil defaulters. You may end up paying more processing fees and the interest rate will also be higher than market standards.
As easy it is to avail a personal loan, the terms associated to repaying the loan are equally hard. Due to this loan being an unsecured type of loan, the bank or the lender takes immediate actions even if you fail to make a single payment. This is one reason why, many people do not go for this loan and seek help from family and friends when in urgent need to funds. You will start getting a lot of harassment calls who would threat you make default payment immediately. Not only that, the penalty charges for not paying the EMI is very high as compared to other loans and financial products.
Today, we will sight you some pointers on avoiding personal loan defaults,
When you take a loan, you are supposed to make all the payments on time. If you do not pay your EMIs on a particular date mentioned by the bank or the lender, you may have to pay huge penalties for the same and not to forget, collection calls.
This is one way to avoid loan default. When you opt for a loan initially, the bank is the one who decides on the due date. You can contact your lender and ask them to change the due date of loan EMIs. This way you can be sure on what date you get your payment and what date you are comfortable making those payment.
Life is uncertain and accidents can happen anytime. If you think you cannot make the EMI payment for a couple of months, you can directly contact the lender and explain them about your situation. The lender on their sole discretion can grant you the grace period, but you will have to make a consolidated payment of two months.
This type of loan repayment is used by entrepreneurs. What they do is make bullet payments of three, six or nine months at once without getting into loan default and hurting their credit score. It is hard to get this option if you are an individual and looking for a personal loan.
To get a loan a good credit score is a must. Similarly if you maintain a healthy credit score, you can show the example of your past credit of timely payments to the lender who can relegate your penalty charges. This again is on the sole discretion of the lender. You can opt for a free cibil score and check your current credit standing.