It is your Pay Day. But on the 5th of every month, your heart skips a beat as soon as the messages for the repayment of your loan EMI chime in.
Sounds familiar, doesn’t it?
Let us decode, de-clutter and de-mystify the air around the three-letter word “EMI”
EMI or Equated Monthly Instalment in layman’s terms is a sum fixed by the lender that a borrower pays every month to him to repay a loan or a large purchase. This monthly payment includes both the principal loan amount and the interest charged by the lender. It is a structured and manageable way to pay off your debt over a long, fixed period.
Financial Literature as well as (reason) dictates that one keeps one’s EMI Burden below 25% of their net monthly income. This avoids the scenario of perpetuating a debt-trap, a vicious cycle wherein you avail one loan and then another bigger loan to repay the existing loans. This is known as debt-structuring.
But what happens in the event of encountering roadblocks such as a sudden shock to your wallet caused by some family emergency?
One might have to explore Loan Settlement as an Avenue in an unforeseen event such as a genuine reasons like facing job-loss, medical emergency or family commitments.
The path to a happy financial future then seems to be through arriving at a Loan Settlement Plan. It is perfectly legal too.
Legal Loan Settlement involves negotiating with your lender to pay a lump sum that is less than the original outstanding loan amount.
But rather than defaulting on your loan repayment commitments, it is a much brighter path than leaving your lenders high and dry. (Talk about taking the high road).
Demurrer: Loan Settlement should be considered a last resort for reducing your EMI burden due to its effect on your CIBIL rating (an indicator of your creditworthiness trusted and scrutinized by nearly all banks and financial institutions before giving you a loan).
The goal is to keep debt from crippling you and your family’s needs. Convinced?
Know more about how to arrive at a tailor-made loan settlement just for you at Settle Loan.
