Okay, so you have secured an online Diwali Personal Loan and are ready to spend big. But, along with the funds and fervor, you must focus on the EMI (Equated Monthly Installment) repayments, as well. What are EMI repayments? It is the monthly amount that you pay, to Loan Singh, to clear-off the Diwali personal loan which you have borrowed. So far, as a digital lending platform in India, we have come across some borrowers who have defaulted on their EMI repayments. It hurts us because despite being salaried and financially independent, you struggle to understand the importance of paying your EMI repayments on time. Some of you may forget (Yes! It’s true! Some do forget that they owe credit), some simply procrastinate or fall short on money to repay. We have written a lot about EMI repayments already on our Blog. With Diwali, set to envelope you in a mood of celebration and enjoyment, we thought today’s piece would set a good precedent for you to not take your EMI repayments lightly.
Online Diwali personal loan
We are grateful to you for applying and availing a personal loan with Loan Singh. During such a time, when salaried individuals are still skeptical to apply for fresh credit or still following traditional lending practices, you have chosen well. With no paperwork, time delay or offline inconvenience; you can avail a personal loan for varied purposes. Those who have already availed a personal with us, know the process; but, in case you don’t know how easy the application process is, here’s how you do it.
Application process at Loan Singh
Not only is a personal loan the best alternative for quick funds, Loan Singh’s quick and easy application process also helps you get the funds you need for any financial emergency. The process to get an easy and quick loan with Loan Singh, is mentioned below:
Get Started Page – Select ‘PERSONAL LOAN’ from the drop-down for ‘Loan Type’ and enter the loan amount with the desired repayment tenure.
Registration page – Add your contact number, personal email ID, and corporate email ID
Social Authorization – Connect your Facebook, Google+ and LinkedIn profiles for discounted rates
Profile Page – Fill in your name, gender, father’s name, number of dependents and PAN Details. We use your PAN Card Number to check your Credit Score and as a KYC document.
Address Page – Choose your type of residence; mention your street address, city, state and pin code.
Job Profile Page – Mention your current designation, total work experience, company name, highest qualification, last institution attended and monthly salary.
Financials page – Upload your latest 6 months bank statement from your computer, your GMail account or from your net-banking account.
Auto Debit Page – Provide permissions to your bank name, account number, and IFSC code so that Loan Singh can auto debit the EMI amount from your account every month. This way you don’t need to set reminders or miss-out on any loan EMI repayments.
Advantages of Loan Singh
Availing a personal loan through a digital lending platform is always advantageous compared to traditional lending institutions, such as banks. Some of the advantages are
Hassle- free process – No requirement of paperwork; nor is it required to run from bank-to-bank. You can apply for a personal loan from your home, your office, your friend’s barbeque party, or from wherever you want to.
EMIs – Loan Singh’s EMI Calculator, lets you know the monthly EMI repayment amount before you even apply for a personal loan. You can track your loan application status by logging into your personal dashboard. Loan Singh’s auto debit feature allows you to make EMI repayments without missing any due-date.
Varied purposes – At Loan Singh, you can avail a personal loan for a number of reasons such as medical emergency, wedding, travel, gadget funding, relocation, etc. You will have the funds in your account, in up to 36 hours from loan approval.
Secure platform – With Loan Singh being SSL certified, all the information you share is kept private and is always protected.
Online Diwali Loan EMI
We are so caught up in our daily professional lives that we tend to ignore our credit obligations. We fail to set a budget to ensure timely repayments of EMI. The personal loan you avail has to be re-paid to Loan Singh in the form of periodic payments (which includes principal and interest, both). This periodic repayment is aptly titled Equated Monthly Installment (EMI). Before applying for the personal loan with Loan Singh, you can actually calculate your prospective EMI on the Loan EMI Calculator.
EMI (Equated Monthly Installment)
From Loan Singh’s perspective, if you are a salaried individual, there is a low risk of default because thanks to the steady income you can make regular payments each month. An EMI is a fixed amount that you, as a borrower, need to pay to Loan Singh every month – until the loan is repaid. It is essentially made up of 2 parts – The principal amount and the interest over that principal amount. This is then applicable across each month of the personal loan tenure. The EMI has to be paid to Loan Singh before the assigned due date. The payment mode preferable for EMI payment is via auto-debit, internet banking or NEFT.
Equated Monthly Installments Calculation
You need 3 things to calculate your EMI – the loan amount, the interest levied and the total time period for which the loan has been mutually agreed to be repaid in.
Here P is the Personal loan amount, R is the yearly rate of interest and N is the loan tenure period (in months).
From Loan Singh’s perspective, if you are a salaried individual, then you show a capability to make the EMI payments regularly. But, making sure the loan EMI payments are done regularly is dependent on your self-discipline. You can easily track your EMI repayments and due-dates through Loan Singh’s loan management system.
Choose the EMI carefully. Ensure that you have the financials in place to be able to make prompt periodic EMI repayments every month. In case you are not serious enough to oblige to Loan Singh’s repayment policy, then it is best that you do not apply for the loan in the first place. Ensure that you do not delay in your EMI repayments, as this could lead to a penalty and hit your credit score badly.
How to Pay Online Diwali Loan EMIs?
You can easily pay your loan EMIs via signing the NACH mandate form and giving Loan Singh the access to auto-debit the EMI repayment amounts each month. This way, you do not have stress about anything.
Let us look at some tips that can help you manage your finances better and stay prompt with your monthly payments.
Prioritize debt payments– Ensure that you are extremely prompt while clearing loan EMIs and other credit-related payments. With all these payments getting registered with credit bureaus, it is important that you pay-off these debt payments to prevent a negative credit history and also to prevent a fall in your credit bureau score. Keep reminders on your phone or log in to the Loan Singh dashboard to keep track of the due-date and impending EMI payments.
Build a budget- A better way to control your finances is by creating a precise budget and sticking to it. A well-planned budget will help you prevent over-spending. Your budget should include all your expenses – big or small. Tweak your budget according to the rise in your income. Revisit your budget every 6 months, at least. Although it can be difficult, especially if you have high spending habits ingrained, a budget should be your priority to make your personal financial management work. This includes loan EMI repayments.
Track your expenses – Expense tracking is a habit that will ensure you keep track of daily, weekly or monthly expenses. This is important because in case you overshoot your budget, you won’t have the funds needed to pay the loan EMIs on time. Keep track of your bank account balance, store all your bills, ATM receipts, invoices, etc. so that you can match these values with your expense tracker. The tracker can be a spreadsheet or a diary. Categorize the expense with type, date and purpose. You will get to know how much you spent last week in restaurants or how much fuel goes into your motorcycle each week, etc.
Rainy day funds – An emergency fund gives you breathing space in case a calamity strikes. It will prevent you from looking for other options to pay your loan EMI, as well. Clearing a personal loan is a debt. It is best you clear only one instead of thinking of paying loan EMIs with your credit card limit. That is a Big No!
5 Benefits of Making Prompt EMI Repayments
Making prompt EMI repayments is greatly beneficial towards your financial peace. Let’s look at 5 benefits of paying your personal loan EMI repayments with Loan Singh.
Good Repayment History with Loan Singh to avail a second loan
Yes! That is true. The awesome thing about availing a personal loan from Loan Singh is the repayment history you build. We appreciate your efforts to pay the EMIs on time and ensure you can then avail another loan – faster than the first one. Please do not make it difficult for us, and for yourself, by defaulting in your EMI repayments.
More Savings by Avoiding Added Charges on Default
Nobody wants to pay more for anything. You look at the cashier with aghast when he/she tells you “Sir! Your bill is coming to Rs.4,999. Is it okay, if I redirect your balance of Re.1 to the children’s fund?” While this is a noble thought, people always expect us to feel no worry to take a little from what we earn. You have so many other priorities to spend your money on, instead of paying extra for a loan default.
On Time EMI Repayments Prevent Late Penalty
With a late penalty you not only have to spend more, you still have to face the ignominy of being a defaulter. It is a worrying sign. Wouldn’t it be better if you set up reminders over your GMail calendar, put up sticky notes on your fridge or simply provide Loan Singh with your details to auto-debit the EMI amount before the due date?
CIBIL Score is Boosted
We have been reiterating about building your credit score since Day-1. A good repayment history, with Loan Singh, will allow you to avail a second loan without a hick. But, this will also boost your credit score to help you get a credit on your credit cards, secured loans, etc.
Trust Built Among Lenders Improving Your Credibility
Loan Singh’s digital lending platform allows lenders to invest their money to receive high returns. Now, if you pay your EMIs on time, it gives the lenders a sense of security that good borrowers are availing a personal loan. This not only convinces the lenders to continue investing their cash to serve your emergency requirements, but you can always remain assured of receiving emergency cash from Loan Singh’s platform.