Are you tired of being broke and living off ramen noodles every month? Do you dream of a life where you can splurge on avocado toast without worrying about your bank account balance? Well, fear not, my fellow readers, because customizing your EMI plan might be the solution to your problems. Yes, you heard it right; EMI plans are not just a boring financial term; they can be your ticket to financial freedom. So, if you want to stop living in your overdraft and start living your best life, relax and dive into this article.
EMI stands for Equated Monthly Installments, a loan repayment method commonly used for small loans where borrowers pay a fixed amount of money every month until the loan is fully repaid. When it comes to customizing your EMI plan, you can adjust three main factors: the frequency, amount, and duration of your payments.
- Frequency:
The frequency of your EMI payments determines how often you will make payments toward your loan. Common options include monthly, bi-weekly, or weekly payments. Your frequency depends on your budget and cash flow, as more frequent payments help you stay on top of your expenses and avoid late fees, especially for a mobile loan which typically has shorter repayment periods.
- Amount:
The amount of your EMI payments will depend on the total amount of the loan, the interest rate, and the duration of the loan. You can change the EMI amount by adjusting any of these three factors. For example, if you increase the loan amount, the EMI amount will also increase. Similarly, the EMI amount will decrease if you opt for a longer tenure. So, you can customize the amount of your fast loan EMI payments by adjusting the loan amount or selecting a longer or shorter repayment period. However, a longer tenure also means you will pay more interest over the life of the loan.
- Duration:
The duration of your EMI plan refers to the length of time you will make payments towards your loan. You can customize the course of your EMI plan by selecting a shorter or longer repayment period. A longer repayment period will result in lower monthly payments, but you will pay more in interest over the life of the loan. On the other hand, a shorter repayment period will result in higher monthly payments, but you will pay less interest over the life of the loan.
When one takes out a loan, the lender will calculate the EMI amount based on the principal amount, interest rate, and loan tenure. However, this standard EMI plan may only sometimes fit your financial situation. This is where customizing your EMI plan comes in handy, especially when you need to pay off an urgent loan. By adjusting the frequency of payments, loans, amounts, or tenure, you can create a repayment plan that suits your needs.
Customizing your EMI plan through a loan app can be a useful tool to manage your finances and make loan repayments more manageable. However, weighing the pros and cons of customizing your EMI plan before making any changes to your loan repayment plan is necessary. It is always a good idea to consult with a financial advisor to determine what works best for your financial situation.