A personal loan is an unsecured loan and it may not be the most affordable option every time. This is because most of the time the rate of interest on a personal loan is higher as compared to the other options.
Four Things To Do When You Do Not Have Enough Money To Pay For The EMIs Of A Personal Loan-
Following are some of the easy steps that a person must follow if he does not have enough money to pay for the equated monthly instalments of a personal loan: –
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DO NOT PANIC:- The first and foremost suggestion is that do not panic. Do not be harsh on yourself or do not react extremely. This is not a rare kind of situation as most of the customers are not able to pay for the EMIs or there are a lot of customers who default on the repayment of the EMIs all the time. Also, the first entity that will be there for you and that will help you in this tough time. If you are not able to pay the EMIs, it is not the end of the road, there are a lot of options that you can avail yourself of to stabilize yourself financially. The amount of EMIs can be checked with the help of a Personal Loan Calculator.
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CONTACT THE MONEY LENDER AND KEEP YOUR DOCUMENTS READY:- After calming yourself, you need to discuss your situation with a money lender. You should approach your moneylender and explain your current situation to them before this matter will get worse. You must take the charge of your situation instead of getting scared. Also, before approaching your moneylender, try to create a file or record which will contain all the details of the past EMIs, and also the details of the loan like the interest rate, tenure of repayment, amount of EMIs, etc. Also, try to tell the genuine reasons why you are not able to pay the monthly instalments of the loan.
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CONSIDER YOUR OPTIONS AND INITIATE A DIALOGUE WITH YOUR MONEY LENDER:- If you have paid for all the EMIs of the loan timely in the past, then the bank or the moneylender will also have an idea of how genuine you are and will surely take this into consideration. They will help you to find a feasible solution. ‘Genuine intent' will work for you, it is the single largest thing that you can avail yourself of. But ensure the bank that you intend to repay the amount and you would like to find a solution with the bank. Some of the genuine reasons that a bank or a money lender will understand can be illness, an accident, loss of job, etc. Moreover, you may have a lot of loans to repay at a single time and therefore, you have too much debt to handle.
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REFINANCE YOUR LOAN:- If the problem is with the high amount of the equated monthly instalments or an increase in the rate of interest, or an increase in personal commitments or any other matter, that reduces your bank balance, then the bank may restructure your loan. This signifies that if you are currently paying around Rs. 10,000 per month for 3 years and this is not affordable for you, then the bank may offer you an EMI which has an amount of less than Rs. 10,000 per month but the time period will be a little longer than three years. So, when the amount of the EMIs will go down, the tenure of repayment of the loan will get longer. Axis Bank Personal Loan Customer Care will offer help to you.
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GRACE PERIOD:- If the problem is that you are not able to pay for the monthly instalments at all instead of paying for them at a certain time, or you feel that your condition will get better in some time, then you can approach the moneylender or the bank for the deferral of your payments. Here, the bank will grant some relief to you, as it will give you a lot of opportunities to increase your cash flows.
