Taking a loan? Know about flexible repayment options
What's the story
In India, flexible repayment options are becoming increasingly popular for loans, particularly among first-time borrowers. These options give you the freedom to pay back your loan according to your financial situation. This way, you can avoid the stress of fixed EMIs and can manage your finances better. Here are five Indian loans with flexible repayment options that can help you manage your finances better.
Tip 1
Personal loans with customizable EMIs
Personal loans from various Indian banks also come with customizable EMI options. Borrowers can choose the tenure and amount of EMI according to their monthly budget. This flexibility is especially useful for those with fluctuating incomes or unexpected expenses. It allows them to adjust their payments without defaulting on the loan.
Tip 2
Education loans offering moratorium periods
Education loans also offer moratorium periods where you don't have to pay any EMIs while you're studying. Some lenders even allow you to extend this period post-completion of your course, giving you more time to find a job before beginning repayments. This flexibility can be a huge relief for students entering the workforce.
Tip 3
Home loans with step-up EMI plans
Home loans with step-up EMI plans allow borrowers to start with lower EMIs that gradually increase over time. This is particularly beneficial for young professionals who expect their income to rise significantly in the coming years. The gradual increase in payments aligns better with growing earnings, making it easier to manage.
Tip 4
Auto loans with balloon payment options
Some auto loans also offer balloon payment options, where you pay lower EMIs during the loan tenure and make a larger final payment at the end. This can be an attractive option for borrowers expecting a lump sum inflow or those who prefer lower monthly payments initially.
Tip 5
Business loans with seasonal repayment plans
Business loans often come with seasonal repayment plans tailored for businesses with fluctuating cash flows, like agriculture or retail. These plans let borrowers pay higher EMIs during peak seasons and lower ones during off-seasons, ensuring that repayments align with revenue patterns without straining finances.