Personal Loan Tips- Are you unable to repay your loan, know the easy way to repay

If we talk about today's scenario, then people take loans for buying a car, building a house and other personal things for themselves, while taking a loan you may find it convenient but sometimes such circumstances arise that you are unable to repay your loan, which can become a cause of trouble if you are suffering from this problem, today through this article we will tell you some tips by which you will be able to repay your loan, know the full details-

By following these guidelines, you can avoid harming your financial future and also reduce the pressure of high EMI and interest rates.

CIBIL's role in loan monitoring

Credit Information Bureau India Limited (CIBIL) plays an important role in tracking and assessing the financial behavior of individuals in the country. It monitors loan repayments and credit card usage, and your credit score is affected by how consistently you manage your debt.

Relief measures from RBI

The Reserve Bank of India has issued several guidelines to help borrowers struggling to repay loans, giving them more time and flexibility to meet their obligations.

1. Loan restructuring: Reducing your EMI burden

One of the major relief options available under RBI guidelines is loan restructuring. If you have a loan of Rs 10 lakh but are unable to pay the full amount, you can restructure your loan under RBI provisions. For example, you can pay Rs 5 lakh upfront and then choose to repay the remaining Rs 5 lakh over a longer period.

2. Avoid the consequences of defaulting on a loan

Restructuring your loan is a much better option than defaulting on it. When you default on a loan, it negatively impacts your credit history, which is reflected in your CIBIL score. A damaged CIBIL score can prevent you from getting any loans in the future, as lenders will consider you a higher risk. Apart from damaging your credit profile, defaulting can lead to legal action or additional penalties.