It is important to make a loan repayment schedule in order to make fast loan repayments.
In today’s time, most of the business owners are opting for business loans and therefore have a burden of loan repayments.
Some of the lenders allow flexibility in repayment which helps the business owner in planning the repayment without any stress because there are some times when there are many debts a business owner faces and finds loan repayment difficult.
Not paying the loans on time makes the owner pay them at a higher interest rate later, which also damages the CIBIL score. This also lowers the chance of getting a loan in the future.
Here are some ways you can plan loan repayment:
1. Repayment plan
To plan your repayment you will have to recollect all the bills, pending loan records, the amounts, loans, EMIs paid, any penalty, and the interests. This will help in calculating the amount paid and the amount left to be paid. After this, you can set a new budget for monthly expenses and a plan to repay all the debts.
2. Take some action when in crisis
If you have many debts or unpaid credit bills, it is necessary to stop using the credit card so that they are not overused and there is no additional money spent.
3. Pay the higher interest rate debts first
Once you have all the data regarding all of the debts including the current ones, make it a point to pay the loans with higher interest rates first. This will help in releasing the burden, and the remaining debts can then be paid quickly. It is therefore advisable to not take loans with higher debts and go for loans with a low-interest rate.
4. Cut down everyday expenses
Cutting down on unnecessary expenses is very important. First, make a list if the unwanted expenses and then eliminate them. For example cut down on the unnecessary usage of equipment, machinery, transport, and sell the things which are not required. This will help with the unnecessary spending which is not required for the business. This will generate extra income which will help with the loan repayment.
5. Try re-negotiating the loan terms and conditions
Re-negotiating the terms and conditions with the lender can help to decide on an affordable interest rate and restructuring the EMI plan. This will help in cutting down on the EMI or interest.
You can also use the EMI calculator for calculating the repayment which will help un planning the payment according to the budget.
If you are looking for unsecured business loans, get in touch with Gromor Finance for unsecured loans at affordable interest rates!