Manage your funds, Update it as you pay bills and spend on other monthly expenses. At any given time during the month, you should have an idea of how much money you’re able to spend, considering any expenses you have left to pay.
Loan owners often presume that because they have already paid a substantial number of EMIs, the interest component is much lower. Hence it makes little sense for them to repay the loan amount. The truth, however, is that the borrower pays the same interest for the unpaid principal amount.
The interest rate acts as a price for holding or loaning money. Banks pay an interest rate on savings in order to attract depositors. Banks also receive an interest rate for money that is loaned from their deposits. When interest rates are low, individuals and businesses tend to demand more loans.
Do not delay or miss your monthly payments: It could lead to late payment charges calculated at a certain percentage of the EMI amount or a flat fee. The Goods and Services Tax (GST) can also apply over the same. Make sure not to delay your payment by much as there can be legal complications for you to face if the default lengthens more than 90 days.
