3 Tips for Managing Your Personal Loans

Personal loans are offered for not any specific purposes like buying house, buying gold or education. If you have any emergency need to get the money for meeting your medical expenses or any kind of expense. It is easy to get the personal loans if you are getting the monthly salary. But, it is expensive to get personal loans. Many people not aware that personal loans are costly and you will have to pay more interest amount compare to other type of loans. This blog post presents few tips for you to manage your personal loans and close it sooner. If you have any great ideas please post it in the comments section.

1. Jewellery Loans

You can get the gold loans for the less interest rates in some of the banks. For example, if you get the gold loans from the corporate banks because you or your father is the regular customer, they will give you the loans against your Jewellery. The interest rates would be lower then the personal loans. In that case, get that loan and repay your outstanding personal loans.

2. Take Loans for Short Tenure

It is very common assumption among the loan buyers that taking the loan for long period would reduce their EMI outgo.  But, they are not aware or giving less important for how much interest amount they are paying for each EMI installment.  You can look into the EMI schedule from your bank statements, the proportion of the Principal and Interest for each month. In the initial period, the interest amount will be higher than the Principal part.  When you have loan for the longer period, the total interest paid will be more.

If you don’t have any other expenses are can pay more EMI amount, please decide the tenure of the loan based on how much you can pay as EMI per month.

3. Avoid taking the Personal Loans

Before taking the personal loans, think twice and discuss with your family whether you can manage without applying for the personal loans. If you have fixed deposit or shares, you can close it and pay your loans. Because, the returns you got from these investments may be less than the loan’s interest rates. If you have long term investment for your child or family, don’t close it. It all depends on your personal financial strength and decision.


I hope this article would help readers to understand the seriousness on applying for the personal loans. The clear message in this story is to avoid personal loans unless it is very urgent or you are financially well and can afford to repay the personal loans in the short period. If you are in the same boat and need advice, please post it in the comments section.



  1. rajendra says

    who sent me the reply regarding interest free education laon , what is his post in banking ? plz forward the reply t my email. thank’s

  2. Jerry D'sa says

    Well thats right!!! get only a personal loan if its totally unavoidable !!
    and PLEASE PLEASE dont take the loan from any finance institution instead get it from any nationalised bank . These finance groups are big cheats !!!!

  3. Rosalie12 says

    Personal loan to deposit something, it’s great. When it is said that the Lawsuit Funding will be used as a deposit, to be sure of what and how you are going to pay for the rest of the object after paying a deposit. If you do not say how are you going to pay the rest of the object, lenders can see that, because of a sign that not only can not afford to any destination, but that probably will not be returned.

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