What is Loan Planning?
Sometimes, life’s important events — like buying a home or car, starting a business, or managing unexpected expenses — require more financial resources than we have. In these situations, we turn to loans to finance our needs. However, without proper planning, a loan designed to serve us can just as easily start to enslave us.
That’s why having a solid financial plan for effective loan planning and management is important. Loan planning helps you understand your repayment capacity, aligns the loan with your financial goals, and safeguards against unforeseen risks.
1 Finance offers qualified advice to help you manage your loans effectively. We work with you to create a practical loan management plan that aids in repaying your debt without causing distress to your financial well-being.
How can 1 Finance help you with Loan Planning?
Loan Affordability Check
Before taking on any new loan, it’s important to evaluate its affordability. Our advisors conduct a thorough analysis of your financial situation to determine how much debt you can comfortably manage without jeopardising your financial well-being. This helps you make informed decisions while borrowing a loan and prevents future financial strain.
Loan Management and Repayment Strategies
Managing your loan repayments effectively is key to maintaining financial stability. At 1 Finance, we know that your financial needs are unique. We work closely with you to design a repayment plan that aligns with your lifestyle, income, and aspirations.
Loan Consolidation and Restructuring
If you're juggling multiple loans or finding it challenging to manage high-interest debt, loan consolidation or restructuring might be the right path forward. We offer qualified guidance in consolidating your debts into a single, more manageable loan or renegotiating the terms of your current loans. By doing so, we help you reduce your monthly payments, lower your interest rates, and simplify your overall debt management.
Credit Profile Improvement Techniques
A strong credit profile is vital for securing favourable loan terms. 1 Finance offers qualified advice on improving your credit score, from managing credit utilisation to timely payments. We help you improve your creditworthiness, giving you better borrowing options in the future.
How we helped a client manage multiple loans and become debt-free
Case study
Ajay Reddy
32 Years Bangalore IT Engineer
Current Finances
Annual Income
₹40 lakh
Living expenses + Taxes
₹14 lakh
Assets
₹39 lakh
Current Liabilities
₹61 lakh
Monthly income and expense breakdown
Total EMI
₹1.25 lakh
Taxes
₹60k
Living expenses
₹60k
Monthly Surplus
₹89k
Liabilities Breakdown
Net worth:
₹ -21 lakh (Negative)
Recognising the need for professional guidance, Ajay approached 1 Finance for help.
Pros
Cons
Good salary
Many loans
Young age
EMI draining all income
Monthly surplus
No Emergency corpus
No Financial Plan
Implemented Strategy
Bank OD Loan Repayment
- Focused on clearing the high-interest Bank OD by selling equity stocks and surrendering an endowment policy for a lump-sum payment. Bank OD was repaid just in 2 years instead of 7 years.
Personal Loan Repayment
- Liquid Debt Funds were recommended after settling the bank OD to facilitate personal loan repayment. Personal loan was cleared in 3 years instead of 5 years.
Loans
Original Interest (₹)
Reduced Interest (₹)
Savings (₹)
Bank OD
12 lakh
2.3 lakh
9.7 lakh
Personal Loan
5 lakh
3 lakh
2 lakh
Total Interest Savings
-
-
11.7 lakh
Family Loan Repayment
- Withdrawals from debt fund were schedule to repay family loan.
Note:
No repayment plan for auto loan, as the interest rates are manageable. Extra funds are better invested elsewhere.Net Worth Improvement
- Current Situation: ₹ -21 lakh (Negative)
- Projected Net Worth: ₹79 lakh
Net Worth Improvement
Rise in Financial Behaviour Score (FBS)
The Financial Behaviour Score is a metrics developed by 1 Finance. This metric takes into account factors such as personality, life stage, generation, life constraints, and macroeconomic conditions.
- Before: 35
- After: 80
We structured Ajay's loan repayment to prioritise high-interest loans and prepare for future investments, easing his financial burden and paving the way for peace of mind.Disclaimer: For confidentiality purposes, the names and financial details in this case study have been modified to protect the privacy of the individuals involved.Calculators
Estimate the potential benefits of refinancing your existing loan
What do you get with 1 Finance?
Unbiased and Qualified Advice
At 1 Finance, we don’t sell loans—we provide qualified loan planning advice to help you make informed decisions. Our guidance is completely unbiased, ensuring that your best interests are always our priority.
Personalised Loan Solutions
We recognise that every financial situation is unique, and a one-size-fits-all approach doesn’t work when it comes to managing debt. That’s why we offer personalised loan planning strategies tailored to your specific needs and circumstances. Our goal is to craft a loan management plan that is not only effective but also sustainable, ensuring you have a clear and manageable path to financial well-being.
End-to-End Support
From the moment you consider taking a loan to the final repayment, 1 Finance is here to support you every step of the way. We provide comprehensive assistance in every aspect of loan planning, helping you achieve your financial goals with confidence.
Frequently asked questions
Does 1 Finance offer loan products?
No, 1 Finance does not offer loan products. Our focus is on providing unbiased loan planning advice to help you manage your debt effectively and make informed borrowing decisions.
How does 1 Finance help improve my credit profile?
Our advisors provide personalised strategies to improve your credit score, including guidance on managing credit utilisation, making timely payments, and addressing any negative marks on your credit report.
Can 1 Finance help me determine how much loan I can get on my salary?
Yes, 1 Finance can assist you in determining your loan eligibility based on your salary, expenses, and credit profile, ensuring you borrow within your capacity.
How can I plan my loan?
You can plan your loan by evaluating your financial situation, selecting the appropriate loan option, and developing a personalised repayment strategy. 1 Finance provides tailored advice to guide you through the process.
How to manage a personal loan?
Managing a personal loan involves making timely repayments, understanding the loan terms, budgeting effectively, and avoiding additional debt. 1 Finance offers support and strategies to help you manage your loan wisely.