Personal loans need no collateral. You can borrow an unsecured loan without keeping anything on the mortgage. These are quick, hassle-free, and need less documentation. Yet, it’s not as simple as it seems to be! It also comes with many cons, such as repayment and high-interest rates. Before reading further, look at Delhi’s excellent registered investment advisor for investment-related doubts.
What Happens When You Are Unable To Clear Off The Loan EMIs?
- The lender will ask you what the matter is.
- You may receive several warnings!
- The concerned person (borrower) may face serious consequences.
- The lender may charge a fine.
- In extreme cases, lenders can also take legal action.
- Bad debts affect your CIBIL score.
- The lender will try to recover the losses by taking possession of your home/properties!
- As a result of a poor reputation in the financial market, you’d not get another loan.
How To Recover From Such Debts?
- Keep your ornaments on the mortgage.
One easy way to generate revenue is to sell or mortgage your jewellery. If you have gold jewellery, it’s a plus. Silver is also great. Jewellery of sale as an emergency would hurt you.
But it can save you from the wrath of your lender. Moreover, you can recover your jewellery later by returning the borrowed amount. These are the emergency saviours which you should use in case of insolvency.
2. Take Up A Consolidated Loan
A consolidated loan is one single loan that emerges when all your previous loan debts combine. These generally have very low-interest rates and are lesser than your earlier loan interests.
It means taking out another loan to repay all your debts. But, these have their disadvantages. For instance, these may get you into financial trouble again!
If you’re an entrepreneur, you can borrow a business loan in Delhi at affordable interest rates. It’ll save you from such added problems.
3. Use your investments
Do you invest in the stock market? Then you have a solution! You can use your dividends or returns to pay off your loan EMIs. Mutual funds help you repay your loan at around 10-11% interest rates. Also, talk to a registered investment advisor.
The amount may increase or decrease at the discretion of your lender. Act. You should negotiate with your lending institution before taking this step. Don’t worry; most banks approve of it!
4. Talk to your lender
Have a lot of financial problems? Then negotiating with your lender would be the best option. Ask them to increase your loan tenure. You can also ask them to reduce the loan EMIs.
Don’t prefer to increase your loan term as it’ll increase the interest rates too. Thus, follow the second suggestion, or you can also ask the person to reduce the principle. This is the one-time-settling of dues.
Conclusion
In need of a business loan in Delhi? Talk to Finway FSC now to avail of loans at affordable rates and the most minor paperwork! Read the above guidelines and put them in place to solve your problem. You need to decide the loan amount before borrowing if you don’t want to land in debt.