Among the several lenders that provide the personal loan facility to the customers, Fullerton India is quite popular among the customers. There are many reasons that work towards making this popular loan options such as affordable interest rates, flexible tenure minimal documentation, etc. But still, while going for a Fullerton India Personal Loan, people want to ensure maximum savings. So, before going for a personal loan from Fullerton India, it is important to know what are those methods that can help you save a huge amount.
If we were to name these methods, some of them will be Choosing a lower interest rate, Opt for shorter tenure, Prepayment, Balance Transfer Facility, etc. In this article, we will talk about these methods in detail so that you can understand better. So, without any further delay, let’s start right away!
Let’s talk about the first method to save while going for a Fullerton India Personal Loan which is going for a shorter tenure.
Choosing a Shorter Tenure
One of the efficient methods to ensure savings is to choose a shorter tenure. Individuals opt for a Fullerton India Personal Loan generally for a maximum of 5 years i.e. 60 months. When you choose a longer tenure, your EMI amount will be low but you will be paying a higher interest outgo. On the other hand, if you choose a shorter tenure, your EMI amount will be higher but the interest amount will be quite lower. But choose a shorter tenure only if your income allows you to do so.
Opt for Balance Transfer Facility
With the help of the Balance Transfer Facility, individuals can also ensure a substantial amount of savings on their Fullerton India Personal Loan. What this facility allows people to do is they can transfer their outstanding principal balance to some other lender at lower interest rates. And while doing this, they can save both in EMI amount and interest amount. But it should be done in the initial years of your loan which is 12-24 months into your personal loan. The reason behind this is the interest amount tends to be higher during the initial years.
Opt for Prepayment Facility
As the name suggests, the Prepayment facility allows you to make the payment for your Fullerton India Personal Loan before the fixed tenure. There may be a situation when you have some extra cash in your hand. With this cash, you can prepay a part of your outstanding balance or even pay this in full. By this, you will be able to save both in terms of EMI amount and interest amount. Fullerton India will charge a one-time processing fee that you need to keep in mind.
Choose Lower Interest Rates
When you are going for a Fullerton India Personal Loan, you should ensure that you are getting the lowest personal loan interest rates for you. The reason: Interest Rates directly affect your EMI amount as well as Interest Outgo. The higher will be the interest rates, the higher will be the EMI amount and vice versa.
Fullerton India provides personal loans at rates that range from. 8.99% to 12% per annum and depend on several factors. Let’s understand how lower interest rates can save you a substantial amount.
Suppose an individual wants to opt for a 5-year personal loan of INR 5 lakh. So, what amount he will save if he chooses a lower rate of 9.50% per annum as compared to 12.00% per annum. Let’s find out!
On considering the interest rate of 9.50% per annum, the EMI amount and interest outgo will be INR 10,501 and INR 1,30,056 respectively.
Whereas on choosing the rate of 12.00% per annum, the monthly installment will be INR 11,122 and the interest amount will be INR 1,67,333.
So, you can see by yourself that when you are choosing a lower rate, you are paying INR 621 lesser in the EMI amount and a difference of around INR 37,000 in the interest outgo.