How to get rid off Personal Loan quickly?

Effective way of dealing with personal loan debts is through what is called debt consolidation. In this method, we could pay a relatively lower installment every month over a longer tenure to the lender who will consolidate all the components of our debt portfolio into one. Here we just want to deal with one loan.

First thing get rid of personal loans which are carrying high rate of interest.

If they are for cause for example (Housing loan etc.. Take proper loan i.e convert into secured low interst home loan in such case)

If they are to meet short term expenses try put all savings and first retire this burden.

Reduce your expenses till the time you carry the loan adopt conservative approach.

I know it is easier said than done but inculcate the habit of keeping track of your expenses by wau of daily diary.

I am presuming here that these loans are taken being fully aware and then there is no option where in you can meet expenses.

The best way to cut size your personal loans is consolidation and converting the same quantum of outstanding principal into a single liability, which can be paid over a period of time with less EMI. Esspecially, professional chits companies' scheme can help us to solve this issue. Closure of all loans will also enable us to save a part amount on monthly basis, by way of RD/SIP which will provide liquidity at all times.    

Apart from what Rajalakshmi has told another viable option would be to talk to the bank and if they agree convert the current loan into a secured loan against vehicles, house, etc but only if the property is free form debts, liens or mortgages. Restructuring of the loan is possible here for a lower monthly payment after taking into consideration the loan tenure and the interest rate. 

dilute your investments presently because market returns on any investment is low than 22 % in case of pl and 42% incase of credit card which is a never ending story . the same income saved can be used as ulip investments

enhancing the EMI is alright, but read the fine prints before for there could be penalty class. care gentlemen

Equity Grows faster than any Investments.There are certain company shares which are immune to fluctations,since demand for  such products are always there

.There are certain companys which give a consistent growth over a period of time.We can use the shares of these companies for repaying debt.  The use of compounding can help us to generate a very large sum of money.The two things which would be avoided is GREED AND NEED,if we wish to approach amount of loan to be repaid.

Example of consistently growing company. INFOSYS. Why? because it is a well managed

company. 

Example of company Immune to fluctuations. NESTLE.-When a Baby is born there is no

other product other than Cerelac. 

example of effect of compounding.

1000+19%=1190+19%=1416+19%=1685+19%=2000.

It is possible to get more than 19% returns in 3months in a bull Market. Hence theoretically we can double money in One year.

Even if u are not able to invest a large sum of money, u can do  a SIP on Companies like INfosys.(ie buying every month One to Two shares every Month and repay ur Loan when ur target is reached.

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I agree the points mentioned in the above ideas, but i would like to add that it should be tailor ended according to Individual situation (Cash inflow.)

Conversion of personal loan into secured loan is a good idea but further appling for PL should be strictly avoided.

Merging all personal loans to a single loan with a good bank which does'nt have hidden charges. this can be choosen when there is no asset to secure a new loan.

Liquidating all movable assets (many electronic products, mobiles laptops etc.)which needs to be replaced or disposed to a fair price and settling the loan, further buy the asset on instalment or EMI option for 0% interest.

It is also fair to go for loans & advances which we get for 0% interest (eg:- loans & advances for offices & Co-opereative societies if registered as a member)

Atlast above all this it ahould be made a point that "No more personal loans until we start to save. It is always noticed that we buy well planned & very reasonble when we spend form uor savings.

start giving interest free loan by making a group of friends or relative. all contributing and helping one of the member

By introducing interest free banks in india like australia, germany, and other countries. SURELY THESE AFFECTED PEOPLE WILL

Usually in all the offices there will be freinds society where in all the office colleagues contribute to society for helping friend´s unexpected finance requirements. It is alwasys better to borrow money from freinds society rather than going in for personal loans. Incase if a person as availed personal loan and to get rid of the loan without high interst burden, borrowing money from freinds society is the easiest and simple way of getting rid of personal loans.

 In an EMI option the major paymenmt goes towards the interest component & very less towards reducing the principal loan component. This is a huge burden especially for high value loans. Also consolidation of loans will not help as though the payment amount being low ; due to high tenure & other processing charges the overall burden is similar if not less.
also it increases the propensity towards unnecessary expenses. If in the initial years the pricipal outstanding is reduced by lumpsum payment then accordingly the interest burden also gets reduced considerably. The penality clause for pre-payment of loans will decide the limit upto which the lumsum payment towards pricipal can be done