It’s safe to assert that nobody is safe from a financial crisis, given the economically volatile nature of the present market. Likewise, even students who have an income of their own but no savings may face financial challenges to make ends meet in their personal lives. Eventually, the option they’re left with is to seek out a loan for students or a personal loan, depending on the nature of the help required.
If you’re planning to borrow or have already borrowed a loan as a student, this write-up will provide useful tips for planning and managing your new financial responsibility.
If you’re planning to borrow:
1. Carefully research the lender, fees, terms, and other details:
Approaching loans at any point in life demands vigilance. Whether you’re requesting a bank or a loan EMI app to lend you money, ensure that you know what and who you’re borrowing from inside out. Re-read the terms and verify the legitimacy of the lender before requesting a loan. Don’t hesitate to negotiate the terms or fees if required.
2. Run the EMI calculator before requesting a loan:
EMI calculators can give you an estimate of the periodic dues you have toward the loan, inclusive of the interest rate. Before selecting a loan, run the calculator to gauge if the loan EMI is reasonable as per your circumstances.
3. Discuss your financial situation with someone you trust:
Even if a student or personal loan has been approved for you without collateral, always discuss that you’ve borrowed a loan with someone you trust. This could be your parents, close friends, or financial advisors who can guide you if things go wayward. Discussing it with someone would likely save you from falling into a debt trap or resorting to unfair means for repaying the loan.
If you already have a loan:
1. Use a budget tracker or financial planner:
If you’ve borrowed a loan through a loan app online, check if a financial planning tool is available within it. If not, check if your bank has an online platform for financial planning or if there are other secure tools available online. A budget and financial planning tool can help you more than just being able to clear off your dues on time. You’d have a better picture of your financial habits and have the resources to become financially responsible.
2. Avoid getting into additional debt:
Avoid requesting more online instant loans if you already have one unless absolutely necessary. Multiple loans borrowed without planning can make financial management difficult and potentially damage your credit score.
3. Start building an emergency fund:
Allocate a part of your monthly savings or allowance to an emergency fund. This fund can help you stay afloat without borrowing additional loans if another financial crisis arises. It may even be used to pay back a personal lone if you’re unable to do so in the future. If you’ve already started building an emergency fund prior to borrowing a loan, do not stop periodically adding funds to it.
In closing:
An instant bank loan can sometimes be unavoidable, but it doesn’t have to be unmanageable if planned well. Utilize online tools available, discuss your financial situation with someone you trust, and borrow an additional loan only if necessary. The tips here will help you navigate loan repayment without turbulence.