A personal loan for engineers provides instant flush of liquidity to engineers to meet diverse needs such as handling wedding costs or a medical emergency, undertaking home renovation, going on a vacation and consolidating debt among others.
While utilising the funds for satiating personal needs is one side of the coin, another side calls for doing certain essential things so that the loan doesn’t become a cause of concern or burden in the future. Here are some essential things for engineers to do after taking this professional loan.
- Set up a bank mandate to pay the EMIs
Paying EMIs on time is of paramount importance. Credit score takes a hit in case of a default or delay and it is reflected in the credit report. This can hamper the chances of availing future loans.
Hence, after availing a personal loan for engineers, the first thing is to set up a bank mandate to pay the loan EMI.
An extremely easy procedure, all one needs to do is to visit the bank, fill up the form along with relevant details. On the given day, the amount specified is automatically deducted from the account.
It can be done online with net banking. The mandate must be set close to the date on which salary is credited, so that the EMI is paid first, taking away the hassle to remember EMI dates.
- Use the loan amount judiciously
Just because a certain amount is readily available to spend, it doesn’t mean that it must be utilised at one go. Frivolous spending not only ruins financial habits but also makes one vulnerable to a debt trap.
It is therefore, essential to use the available amount judiciously and make withdrawals accordingly. This is where Flexi Loan facility available with personal loan for Engineers from Bajaj Finserv comes in handy.
It allows one to make withdrawals as and when required from the approved limit with interest being charged only on the amount borrowed and not on the entire limit. This keeps EMIs in check and also helps in better management of finances.
- Direct windfalls received in prepaying the loan
In case of windfalls received as bonuses or maturity of insurance policies, the proceeds should be directed in prepaying the loan amount, instead of binge spending. Though some lenders may levy prepayment charges, the price is small compared to the relief it brings in being debt-free.
If the outstanding amount can’t be paid in full, at least part payments must be done to bring down the principal amount. This subsequently lowers the EMI and helps in making savings in the long run by keeping a tight lid on the interest outgo.
With the above-mentioned tips, not only can judiciously use this professional loan but also ensure it’s paid on time within the tenor.
Bottom Line: Once you have decided to take the personal loan and your loan amount has been approved. You have to ensure that you follow all these steps very carefully when it comes to repayment. You should not be feel worried or hesitated during the loan application process and loan repayment process, NBFCs like Bajaj Finserv are always there to guide you and assist you throughout the procedure.