Being a woman in the workforce is not an easy task or journey. The care of your family and your career are two distinct sets of responsibilities that you must balance. In their quest to strike the perfect balance between their personal and professional lives, many women neglect to take their financial situation into account. Even if your spouse is working extremely hard to support the family’s expenses, you still need to manage your money carefully.
When requesting a personal loan, this is also very important. Here are six tips for female financial planners that will help you maintain a sound financial position and improve your chances of getting a tata capital personal loan.
Maintain an emergency fund to pay for unforeseen expenses
It is simpler to manage financial emergencies like an unexpected job loss, a serious illness, or any other unforeseen event that prevents regular income inflow if you have an adequate emergency fund on hand. Women who work must establish and maintain an emergency fund that is at least six times their monthly expenses. Even if your spouse has been overseeing an emergency fund that includes EMIs as per the applicable Tata Capital Personal Loan Interest Rate, you have the option to maintain a separate emergency fund or make joint contributions.
The best level of capital protection and liquidity for your emergency fund can be found in high-yielding savings, liquid funds, or short-term investments because emergencies can happen at any time. As a result, you can continue using your emergency fund to pay off tata capital personal loan as needed.
To safeguard the future of your family, choose term insurance
You have a duty as a working woman to make sure your family will be financially secure in the event of your passing. Your loved ones would have the resources they require to continue making investment payments and personal loan repayments after your death thanks to an assured sum from a term insurance policy, which would replace your income. Regardless of whether your spouse has adequate term insurance in place, you must select a separate term insurance plan with coverage equal to at least 10-15 times your annual income.
Keep in mind that when compared to other insurance policies like money back policies or endowment plans, term insurance offers a higher sum assured amount at relatively very low premiums. Remember that you can deduct the cost of your term insurance premium under Section 80C.
Purchase health insurance to assist with ballooning medical costs
Your entire life’s savings could be lost in one hospital stay due to the rising cost of healthcare in our country. You must get a reputable health insurance plan to pay for your family’s medical expenses. You should use caution even if your employer provides health insurance because it might not be enough and will expire once you change jobs. As a working woman, you may want to select a family floater plan and include your children in it. In the event of an accident or disability, you can select a top-up medical policy to provide additional medical expense coverage. The cost of your health insurance for you, your spouse, your parents, and your dependent children is deductible under section 80D.
Use women specific savings accounts
If you’re a working woman looking to apply for a tata capital personal loan, use accounts designed specifically for women. You can benefit from extra benefits that various banks are providing by selecting women-specific savings accounts over standard savings accounts. Incentives like cash back on particular purchases, accident insurance, discounts, a lower minimum balance requirement, doorstep banking, lower Tata Capital Personal Loan Interest Rate, waived loan fees, etc. are offered by a number of savings accounts designed especially for women.
Accept a joint loan if it is available
A personal loan can be taken out for a variety of reasons, including pressing financial obligations, home improvements, etc. If a working woman needs a loan, she should consider applying for a joint loan with her partner. The benefit would be a general rise in your chances of getting a personal loan approved.
To achieve additional goals, keep making your initial investments. Whether your long-term goal is to build a corpus for your retirement, a corpus for your child’s higher education and marriage, or both, all such long-term goals require an early investment for the timely accumulation of the target corpus. Working women who are currently paying off personal loan EMIs or who are considering doing so should regularly discuss their goals with their spouses and families in order to prioritise them and make the necessary investments to make them a reality. Do not compromise or disregard those life goals in your efforts to obtain or repay the personal loan.
Don’t let personal loan make you delay your journey to start investing
Remember that the later you start investing and saving to achieve your goals, the longer it will take for your money to compound and grow. To accomplish long-term goals, defined as those with an investment horizon of five years or more, think about investing in equity mutual funds. In the past, equity mutual funds have performed better than other asset classes and inflation.
Additionally, if you want to avoid having to correctly time the market, invest in mutual funds through a SIP (Systematic Investment Plan). SIPs encourage financial discipline by making scheduled, organised investments at regular intervals, which aids in the target corpus’s timely accumulation.
Again, let’s emphasise how important it is to make your loan EMI payments on time
As a working woman, make sure you establish the practise of paying your EMIs on time. If you pay off your credit card debt and EMIs on time and with discipline, which is reflected favourably in your credit report, you will be better able to establish and maintain a high credit score. If you have a high credit score, you might find it easier to obtain loans with lower Tata Capital Personal Loan Interest Rate and better credit cards with better rewards.
Any late payment, however, could harm your credit rating, making it more challenging for you to get credit in the future and putting you at risk of paying any necessary penalties and fines. Your creditors may put you on their “blacklist” and even declare you to be in default if you frequently miss debt payments.