News India Live, Digital Desk: Personal loan tips: It is natural to worry about not repaying personal loan or EMI during financial constraints. But do not panic, there are many ways from which you can manage the loan burden. Avoid taking a second loan to repay a loan, as it can implicate you in the debt cycle. Let’s know about the methods that can overcome your EMI problems.
Ask for additional time from the bank
If your financial condition is temporarily bad, contact your bank or NBFC immediately. Explain them your financial position and demand some extra time to fill EMI. Explain clearly how long you are unable to give EMI. The bank can provide additional time from a few months to one year after seeing your situation.
Request loan restructuring
If you are unable to repay the EMI amount, you can demand the bank to do loan restructuring. In this process, the bank reduces the monthly EMI by extending the loan duration.
For example, if you took a loan of Rs 5 lakh for 5 years and have paid regular EMI for three years, the bank can reduce the EMI amount by increasing the remaining 2 years period, which will reduce your monthly burden.
Take the facility of balance transfer (BT)
Many banks offer ‘balance transfer’, so that you can transfer your existing loan to another bank with low interest rate. This process gives you a loan of new amount, so that old loans can be repaid and the remaining amount can improve your financial position.
Note that some banks do not accept the loan of NBFC for balance transfer, so get this information first.
Option of one-time setting
If you are not able to pay EMI for a long time and your situation does not improve even after the bank’s frequent contact, the bank may offer one-time settlement (OTS) option. In this, the bank accepted only the lump sum amount (usually 10% to 50% of the total amount) instead of the total outstanding amount of your loan and the remaining amount is waived.
Usually, banks give you about a week to deposit the settlement amount.
Through these measures, you can also provide effective solution to the problem of loan and EMI during the economic crisis.
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