How to go for a higher personal loan amount with a lower IME
Personal loan is a versatile financial instrument that helps you meet your various monetary needs and life goals. Whether it’s home improvement, a child’s college education, international travel, emergency medical bills, a personal loan can be the right choice to meet your many financial needs.
The majority of banks and financial institutions offer several types of loans such as personal loan in United Arab Emirates without salary transfer or personal loan with salary transfer for expatriates as well as UAE nationals within hours.
What makes this financial instrument the most feasible option is flexibility. Yes, you read that right. The borrower has full control over the repayment of the loan amount as per his convenience. As a consumer credit borrower, you can enjoy the flexibility of selecting the loan term as well as the loan amount. Depending on these two elements, you can adjust your Equivalent Monthly Payments (EMI) either manually or using a personal loan calculator.
So, if you want to go for a high financing amount while still keeping your monthly payments as low as possible, consider these handy tips mentioned below.
Choose a long repayment term
The loan term is the total repayment term during which the borrower must repay the principal as well as the interest rate to the provider. It is inversely proportional to the amount of your monthly consumer credit. Choosing the long repayment term allows you to repay the full amount owed over a longer period of time, thus minimizing the amount of the EMI.
However, you should also keep in mind that while your longer repayment term comes with easy-to-pay, low-amount monthly installments, it also increases the interest rate payable on consumer credit. So, you should only go ahead with this option if you feel that you cannot afford a high amount of equivalent monthly payments.
Opt for a personal loan at a low interest rate
The personal loan interest rate is one of the key factors that significantly affects the loan principal disbursed as well as the repayment term of the finance. When you opt for a low interest personal loan, you are also opting for a short repayment term. So, if you think that you can speed up the loan repayment by paying off a higher amount of EMI, then only you should choose lower term financing. However, a consumer loan taken out at a low interest rate allows you to pay off your debt much faster.
If you have a high rate loan, you can also go for a refinance option by going for a low cost loan. Well, this is usually balance transfer financing which usually comes with a low interest rate. Apart from this, you can also opt for top-up funding on your high funding amount.
Choose your exciting bank while opting for a loan
It is highly recommended that you borrow a loan from a bank with which you already have a relationship. It will work in your favor if you have maintained a good relationship. With this, you will be able to negotiate the terms of the loan. Also, if you have maintained financially responsible behavior and a good relationship with the bank, there is a good chance that you can opt for a low interest loan.
Select the best available option
In recent times, countless banks and financial institutions are offering unsecured personal loan options such as UAE personal loan without salary transfer or personal loan with salary transfer for expats as well as UAE nationals. With increasing competition, some providers are offering low interest rates along with other unique features to influence their customers.
So, when deciding to go for consumer credit, be sure to compare all the options available in the market before you cut down to zero. Now these days it has been quite easy to make a comparison; all credit goes to the Internet. You can compare different lenders based on their interest rate, repayment term, loan amount, and other fees in a very short period of time only to find the best option for you.
The final verdict
Following the aforementioned tips can certainly help you make smarter decisions when choosing consumer credit. By making sound financial decisions, you will be able to go for a high loan amount and also pay a lower EMI amount.
But remember; When you go for a large loan amount, more than what you really need, it can put a hole in your pocket as you would end up paying more monthly payments unnecessarily each month. That is why it is very important to choose the amount of financing wisely and wisely, to choose the best lender, to benefit from a low interest rate and to know what you are agreeing to. By minimizing your monthly payments, you can prevent this financial instrument from becoming a liability. Plus, it helps you maintain a good credit rating which is just the icing on the cake.
About the Author:
Pardeep Garg is an online entrepreneur, motivational speaker, and author. He is passionate about market research and enjoys writing on topics of market research, business, digital marketing, finance, information and opinions for success in life.