What is a Grace Period in Personal Loan? What are the Benefits?

 

What is a Grace Period in Personal Loan? What are the Benefits?

An instant personal loan is offered to salaried millennials like you. Only the best FinTech company provides funds ranging from ₹15,000 to ₹4,00,000 with a repayment tenure of up to 1.5 years. You can choose from different loan terms like 90, 180, 270, 360, and 540 days as per your financial capabilities. A grace period here is useful. It lets you delay the personal loan EMI payment for a few days. 

Moreover, you can arrange for the funds without penalties if you cannot clear the same on the stipulated due date. This is especially beneficial in times of cash crunch, emergency at home or simple forgetfulness. Here’s how it works. 

What is a Grace Period? 

This length of time stretches beyond the due date of the EMI. Get a loan online with a company that allows at least a 5-day interest-free grace period at the end of every month. This means no interest will be compounded daily, and zero late fees are charged. Neither will the user’s profile be tagged as negative on the loan platform. There’s no impact on the credit score as well. The fixed period is usually mentioned on the loan contract. 

But know that there is a 0.7% interest-free penalty if you default on the EMI after the grace period is over. This could make the loan a costly affair. So, it is a good idea to set up alarms or simply an auto-debit facility. Then, there would be fewer chances of missing the payments. Further, set a reminder for the EMI at least 8-10 days beforehand. It will help you prepare for the payment without a rush. Finally, you can pay off on the fast loan app available on Google Play Store or the App Store. Download and create your profile to get started. 

Benefits of Grace Period 

The best digital lending company offers a grace period for sufficient time between the last billing cycle and the next payment date. Below are a few distinct perks:

 

  1. Delays during this period will not result in loan cancellation.
  2. It does not come at an extra cost which saves you from financial stress.
  3. The timeline is a good one week to arrange for the EMI without cutting down on your daily needs.
  4. It helps to maintain a top-notch repayment history. Now you can qualify to apply for other loans like a personal loan, home loan or car loan.
  5. It is in-built into loan terms, and you do not have to apply separately for the same.
  6. It ensures peace of mind to users when you get a loan online since it saves you from major consequences if you miss out on the repayment date.

 Conclusion 

The grace period is an excellent feature that ensures a seamless borrowing experience. It is especially true for young adults who might not have enough solvency or are paying other debts like a student loan from their pocket. It does not impact your financial health and is a great breather during financial hardships.


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