3 Simple Ways to Manage Your PLs Better During your Golden Period

Personal loans are the most widely used option for meeting financial emergencies or funding vacations and other expenses. These loans are generally offered to people between the age of 18 and 60 who have a stable income. But several banks and lending agencies offer personal loans to even old-aged people or people in their golden years.

Anyone having a steady source of income whether through pension or any other source can apply for a personal loan to meet their emergency funding needs. Lending agencies may, however, require the applicant to provide collateral or advice the applicant to find a co-applicant with a steady and stable source of income. The co-applicant or guarantor for applying for a personal loan can be a spouse or an earning child having the capacity to repay the loan amount. The criterion for sanctioning a personal loan to senior citizens may vary from one bank to another. Here we talk about how to manage your personal loans better during your golden period.

How to Manage Personal loans?

Since personal loans to senior citizens are generally granted on the provision of collateral in the form of property or land they should ensure timely payment of the EMIs to avoid losing their property. This requires the adoption of a disciplined approach to spending. Borrowers should cut down on unnecessary expenses and focus on repaying the borrowings.

While applying for a personal loan the applicants should also ensure that they can pay the EMIs on time. Applicants can use a personal loan EMI calculator to check the possible EMI options for a specific loan amount for different durations. This will help them choose an option that is easily repayable.

Here are some ways to manage personal loans well.

• Pay off the High-Interest Loans First- In case an applicant has not one but several personal loans in his name, he should start by repaying the one with the highest interest cost first. This will reduce the overall burden and help him manage his finances better. Use this method to repay the loan with the next highest interest and so on.
• Use Additional Income to Repay Loans- Any sudden funds that the borrower gets by selling a property or maturing of an insurance policy or from any other source should be used to prepay his personal loans and reduce the EMIs.
• Consolidate your loans- Another way to manage borrowings especially if the borrower has not one but several loans in his name is to consolidate them into one. This will help him manage his finances better and focus on repaying the loan instead of juggling finances to pay the EMIs for different loans.

The golden years of life are a time to sit back and relax rather than worrying about loans. So, one should take a personal loan for only that amount that is necessary and ensure that he pays it off on time. One can use a personal loan calculator to check how much loan he can get.