It is important to find smart ways of repaying one’s CA loans. These loans are mostly availed by the self employed CAs who look forward to opening their own firms. However, matters just do not stop after the loan has been disbursed- there is also the matter of EMIs which have to be paid on time and miscalculations can easily turn this into a liability. Here are some ways on how one can manage their EMIs better.
- While it might sound impossible for some, one can try opting to pay higher EMIs than the usual rate. One can always cut down on secondary and unnecessary expenses and increase the amount paid towards EMIs instead. This means one would have shorter loan tenure and that would mean paying less towards CA loan interest rate in the long run. Of course, this can and should only be done once all the basic areas of expenses are covered. However, there might be excess money to spare if the new firm, for which the loan was taken, happens to perform very well and the profits can be used for paying the EMIs faster.
- Make good use of EMI calculators. These online calculators do a pretty good job of calculating what would be the ideal EMI rate for you. The calculators usually work after certain information has been fed into them, like one’s monthly income, the daily expenses, the interest rates and the principal amount of the loan. Once the calculations are done, they can more or less tell you about the amount you can set aside for your EMI.
- A Bajaj Finserv loan for Chartered Accountants has pre-payment options available on loans and lets you settle an installment before it is due. This can significantly decrease the loan amount and there are also no pre- payment charges like some banks charge. By saving enough and making pre payments, one will notice a significant reduction in the loan principal amount and interest.
- It is a good idea to keep some amount aside as a buffer towards paying the EMIs. This is because it is essential that one must never be late on the EMI payments. Too many late payments can result in the bank levying late payment charges which will simply increase the expenses. The priority should be to repay the loan for CA as soon as possible and not more towards additional expenses.
Of course, it is also a fact that EMIs can be paid faster or in greater amounts only when there is excess money. This may or may not happen as there can be other commitments at home, like an ongoing medicine expense, which prevents a CA from increasing the EMI amount or to make prior payments. Nevertheless, these are options to consider and if implemented will help managing the finances better.