posted on 2019-09-27 11:14:59 by Admin
A personal loan costs avg 12% whereas a credit card outstanding costs an avg. 41% if the dues are rolled over and you’re paying the minimum amount due. Therefore it is much higher in comparison to a personal loan, which is available at as low as 10.99% today based on the profile of the applicant and credit score. Now, if you have any outstanding dues on your credit card, then it is better to do a balance transfer of the card dues by availing a personal loan.
The EMI plan can be made flexible like paying only the interest by availing a Flexi overdraft loan from sources like Bajaj Finserv. The assessment of your repayment ability determines your loan amount and even whether you can be provided with a loan by the Bank. Conversely, the delayed payments if made show in your credit track which curtails your ability to avail a loan. We might come across situations where there is an instant requirement to use funds for a medical emergency, and this might result in a missed EMI. Interaction is the basic here, if you get an idea that you might skip on your EMI for some reason, then you should immediately inform this to the bank and discuss the situation with the concerned person.
All the major loan providers and banks are likely to recognize the borrower’s request in case the need is valid and they usually allow for a maximum of 2 late EMI payments considering the borrower’s situation. Though, continual EMI defaults can have negative effects on your CIBIL score. So, if you miss paying your EMI over 3 months, then the lender may announce you to be (NPA) Non-Performing Asset which makes it very difficult for the borrower to apply for any loans in the future. In case, the problem is from the lender’s end then the bank will provide a clearance letter declaring the same.
The follow up by bank gets started immediately after the first EMI skip by the lender’s end. For the first few missed payments, you will receive notices from the bank intimating you about the same along with the incurring cost. In case of constant failure to pay, required actions might also be taken against the applicant.
You can easily pay off your outstanding EMI on your existing loan using a personal loan. Mentioned below are a few points that the bank will consider while offering a loan in this condition:
● Eligibility as per salary
● Current outstanding amount
● CIBIL Score (650+)
● Company category
So, if you have heavy dues on your credit card and really wanna get it all cleared as soon as possible, it would be just perfect to choose a personal loan and easily get all your remaining balance done right. Now, most of the people prefer doing so as this is the easiest, most feasible and safest way to manage to pay off all your outstanding credit card dues. And, to make this happen, all you have to do is just to apply for a personal loan by fulfilling the eligibility criteria.