Paying Off Your Personal Loan? Here Are Three Reasons to Repay it on Time
When it comes to borrowing loans, all of us know that one of its key aspects is making repayments on time. In today’s day and age, all of us are familiar with personal loans. Considering the convenience it offers, it has become the top choice for procuring emergency funds for salaried professionals in 2020. But if you borrow, and want the funds instantly, you must also repay on time. This is something both a first-time borrower as well as a person who has taken out many loans should know. The repercussions of late repayment are also well-known: you get marked down as a defaulter to CIBIL, which lowers your credit. This, in turn, makes it very difficult for you to borrow personal loans in the future. Even if you do find yourself eligible, chances are that it may come with high interest rates and tough loan terms.
Considering the above factors, it makes perfect sense to repay your personal loan on time. We’ve listed three benefits that you may get to enjoy if you do. Read on:
1. You Become Eligible for Higher Ticket Sizes
As mentioned earlier in the article, if you are overdue on your loan repayments, then that negatively impacts your chances of availing bigger loans in the future. The opposite of this is also true. If you repay your loan EMIs on time, it shows that you take your financial commitments seriously and that you’re able to manage your money well so as to not compromise on them. This will also improve your creditworthiness and financial standing. So, the next time you want to take out a loan, you may find that you’re eligible for bigger ticket sixes, lower interest rates, or maybe better terms. If you’re lucky, you may get all of these features!
2. You Can Enjoy Special Offers/Discounts
We all know that doing your research, or shopping for the best offers, is the first thing one must do when borrowing a loan. This is so that we end up with the most affordable lender for our personal loans, with terms and conditions that are best suited for our financial emergency. Now, let’s suppose you take out a personal loan and repay it on time. This will automatically make you eligible for special discounts or festive offers in the future, should your lender choose to offer them. This is because you have already displayed strong repayment capacity the first time over, and there is no reason for your lender to doubt the same.
3. You May Be Given Special Consideration for New Products
When it comes to personal loans, we all know that there are a lot of different types out there, each for a different purpose. Now, let’s say that you’ve been a loyal customer of general-purpose personal loans from your lender, with a very strong repayment history. If and when your lender introduces a new loan product, say Wedding Loans or Education Loans, you may be a select group of customers who might get to try it out before everything else! This sort of exclusive sneak-peek is normally accorded to good customers, and in this case, customers who make payments on time.
Wrap Up:
The points we have listed above are the most popular advantages of paying your personal loan on time. We hope it helped drive home the advantages of doing so. If you are on the lookout for a cheap personal loan provider that offers fast and easy access to short-term funds, KreditBee is a good option you can consider. KreditBee offers cash loans up to Rs. 3 Lakhs, with no physical documentation required. All you need to do is download the KreditBee app, complete your profile, and leave the rest to us. If you wish to learn more about our personal loans, write to us at help@kreditbee.in or simply call +080 44 292 200.