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A personal loan can ensure financial support if you need funds urgently. Unlike other loans in the UAE, a personal loan is an unsecured type of debt, which is why a borrower does not need to provide any collateral in the form of security.
The best part about personal loans is that you can avail them to meet any kind of financial needs such as wedding expenses, medical bills, redecorating your house, etc. Banks in the UAE need minimal documentation to process a personal loan application. That is why these loans are most recommended among salaried people when they are in need of funds.
It is quite easy for salaried employees to get a personal loan and fulfil all their financial needs. However, managing the personal loan EMIs could be a challenge. Most people get so occupied in their daily activities that loan repayment is the last thing that comes to their mind. However, this is not an appreciated financial exercise. You must make on-time personal loan EMI payments your topmost priority and keep your finances in place.
Keep reading to go through some helpful personal loan repayment tips for salaried employees to help them manage their personal loan EMI payments more efficiently.
Here are the primary ways you can follow to pay your personal loan EMIs on time if you are a salaried employee.
1. Check Your Repayment Capability: To be able to pay your personal loan EMIs, you must first ascertain your loan repayment capability. Personal loan lenders in the UAE are not very much flexible when it comes to loan repayment. You must also be aware of the interest rates and the available policy terms. Keeping all these things in mind, along with your loan repayment capability, you must determine your personal loan EMI amount and the total tenure for better budget planning. Moreover, you can also use an online personal loan EMI calculator to instantly evaluate the loan EMIs that you need to pay against your personal loan.
2. Ensure Enough Savings: Now that you know your monthly EMI amount, you must save a part of your salary every month for better financial stability. This helps you to have enough funds in your account to deal with unexpected or sudden expenses while paying your monthly EMIs. Moreover, if you are short of funds and need to pay your personal loan EMI, your savings could come in handy and act as a backup option for additional monthly expenses.
3. Set up Reminders for EMI Payment: Putting out reminders for personal loan EMI payments can help salaried employees pay their instalments on time. These reminders help you ensure that you have enough funds in your bank account for the EMI payment to be processed successfully. With these reminders, you can avoid missing out on loan EMIs due to a lack of sufficient amount in your bank account.
4. Budget the Monthly Expenses: Make sure you set up your loan EMI amount based on your budget requirements. The personal loan EMI amount must not exceed 50 to 60 per cent of your monthly salary. Such an amount of EMI enables you to manage your day-to-day expenses easily without making any compromise.
5. Choose Your Loan Tenure Wisely: Choosing the shorter or longer loan tenure term totally depends upon the amount of your loan EMI. If you want to get your personal loan settled at the earliest and your budget also allows paying higher loan EMIs, you must choose a shorter loan tenure. However, if you have high monthly expenses and barely manage to pay the loan EMI, you must opt for longer tenure with a reduced EMI amount. This gives you enough time to deal with your financial burden and manage your monthly budget.
There are multiple lenders in the UAE who offer personal loans for salaried employees, provided that they are capable enough to repay them on time. And this works out only when you pay your loan EMIs on time. Any negligence on your personal loan EMI payments can lead you to a negative credit score, which, in turn, can damage your chances of availing any loans in future.
Additionally, in case you miss out on your loan EMIs, you might be legally bound to pay some penalties or late payment charges based on your loan’s terms and conditions. Hence, it is advisable that you consider the tips mentioned above and pay your loan EMIs on time to better manage your finances.