Sandeep is a freelancer. Some months for him are great for income, while some others are not. When he wanted to take a personal loan, his best friend told him about flexible EMI payments. Sandeep is a happy man because flexible EMI payments have made his life easier. Let us find out what are flexible EMI payments, and how they work so that you can apply for a personal loan with all the required knowledge and understanding.
Flexible EMI payment structures allow one to take a personal loan and pay it at their convenience. This arrangement is best suited for those borrowers who may not have regular income or phases of extra income. Such information beforehand can help the borrower decide the best course to take before they apply.
The first system is the bullet loan. These are personal loans suitable for people who receive periodic incentives or payments. By opting for this flexible loan arrangement, you can avail higher personal loan eligibility and can start paying regular EMIs. The beauty of this system is that you also have an opportunity to reduce your EMI and interest burden based on the periodic income the borrower receives. As you can see, with a bullet loan system in mind you can peacefully apply and be rest assured of a customized mechanism for loan repayment. There are corporate employees who get bonuses, and these large money inflows can be used to sharply reduce loan liabilities.
The benefits of this system include higher eligibility, flexibility of choosing the prepayment amount, no charges on prepayment, reduction of interest burden substantially, finance management help, and manages small fund flow crunches.
Another flexible EMI payment system is the step down flexi EMI plan. In this arrangement, a step-down loan allows you to take a personal loan where you pay higher EMIs initially. But the amount decreases after a defined period, thereby bringing much-needed relief to the borrower. This arrangement helps to reduce your interest burden substantially because the borrower is paying a higher principal amount. Step down personal loans are ideal for people with high disposable income. Do remember higher EMIs consists of payments of higher principal component. After a fixed time, the EMI amount falls and the balance loan is repaid with ease. A personal loan EMI consisting of a higher percentage of principal means the interest burden is substantially reduced.
The benefits of this system include the flexibility of choosing the loan amount, paying higher EMIs in the beginning, lower EMIs at the end of loan term, and lowering off interest burden, among many others.
Selecting a flexible repayment option holds a big advantage. With the best option, you will never face any difficulty in repaying the loan. Kindly do your research properly before you apply. With many ideal repayment options for all types of borrowers, Tata Capital is the best financial institution to understand your challenges and help you apply for a personal loan given your unique needs. At Tata Capital, our servicing and credit team will give you highly customized flexible EMI payment terms to make your life simpler and happier than ever before.