10 FEBRUARY, 2022

New Year is the time to start life afresh with new resolutions, goals and dreams. You make plans for the year and determine to make the upcoming year better than the last one. The best resolution you can make for your financial health this New Year is getting debt-free. Multiple debts can be stressful and affect your daily life. This is where a personal loan can help you. With a personal loan, you can repay all your borrowings and save money too. Read on to know more.

 

  • Improve your credit score

Even a single default on your credit card bills or loan EMI can lead to negative remarks on the credit report. It can lead to a dip in the credit score and your chances of availing any loans in future. A personal loan helps you deal with this issue. A personal loan comes with a low-interest rate. A lower interest rate means you have to pay a lower EMI, which reduces the chances of defaults. When you pay all your personal loan installments on time, it improves your credit score. A high credit score can help you avail a loan at competitive interest rates and save money.

 

  • Consolidation of debts

A personal loan is the best way to consolidate your debts and dispose of multiple liabilities. If you are repaying several loans like education loans, credit card bills, gold loans etc., it can be stressful and confusing. Instead, you can opt for a personal loan to consolidate all the debts and repay them through one loan. With a personal loan for debt consolidation, you do not need to manage different loans at multiple interest rates or remember their respective interest rates. Instead, you can pay the entire debt at one interest rate and EMI. Moreover, personal loans have lower interest rates compared to credit cards.

  • Flexible repayment

Credit cards have a short window for repayment. So, if you are in a financial crisis and unable to pay the outstanding bill for a month, you could have to pay high interest and penalty. On the other hand, personal loans are available at flexible tenures, which you can decide as per your affordability. Moreover, you can also prepay the loan and save money on the interest outgo.

 

  • Finance your big-ticket purchase

A personal loan can be a wise financial decision to fund your big-ticket purchases instead of draining your savings. Your savings can help you earn interest income if you invest them in high-yielding investments rather than exhausting them in making big-ticket purchases.

 

Availing a personal loan is simple and fast. Moreover, as it has no hidden charges and low personal loan-processing fee, you can easily repay your multiple debts. Also, it can help you fund your various needs, clear off your debts and boost your credit score. However, before applying for a personal loan, you must check your eligibility and affordability.

 

Latest Comments

Leave a Comment

200 Characters


Read Next

medical-emergency-article

Quick Personal Loan for Medical Emergencies

Manage emergencies with quick personal loans. These loans are provided with quick disbursals. 

marriage-hero-article

Avail a Personal Loan While Getting Married

Getting a personal loan for marriage is easy and repayment for a marriage loan is flexible.

is-securing-your-childs-future-a-childs-play

Personal Loan for Home Renovation & Improvement

A personal loan for home renovation is quick along with....

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.