When you need an emergency fund, a monthly payday loan is the right solution. But you should take the lightweight installment that suits your ability. Check out the ways you can apply below!

Applying for a monthly payday loan is often done when we are in a state of emergency and cannot be delayed such as paying hospital fees, accident reimbursements, school fees, and so on. This urgent need can actually be solved if we have an emergency fund in place for savings. But what if you don’t have enough savings? Of course we will apply for a monthly payday loan.

When taking out a monthly payday loan, the biggest risk you will face is your inability to pay future installments that will result in arrears. To resolve this, you should take a small installment so that the debt can be repaid on time without any delinquency. Then how do we get a monthly installment loan with a small installment? You can apply these ways!

## 1. Select a Trusted Loan Provider

The first way is to choose a trusted lender. You can tell from the credibility of the lender, whether the lender is registered and overseen by the OJK (Financial Services Authority), or whether the lender has an official office. By choosing a trusted lender, you can avoid any fraudulent actions taken by lenders such as raising interest rates, adding additional fees, and so on.

## 2. Take the Right Tenor Time

The next way is to choose the right tenor. Monthly payday loans usually provide repayment periods ranging from 10 days to 36 months or 60 months, depending on the lender’s terms. When choosing this tenor, you need to be careful because if you choose the wrong tenor, you may not be able to pay the installment.

Here are two ways you can do it, if you want a monthly payday loan with a small installment, then you can take the maximum tenor. But the expense is the total amount of the debt so it is due to interest. But if you take a short tenor, the nominal installment per month becomes heavier. If you are not sure you can pay off the debt quickly, then choose the maximum tenor so that the monthly installment will be lighter and payable on time.

## 3. Choose the Low Fruit

The role of interest rates is very important in determining a small monthly payday loan installment. Monthly payday loan providers are different, and interest rates are different. Therefore, you cannot choose the lender directly. Compare more than two monthly payday loan providers to get the lowest interest rates.

When you are told how much the flower will cost, remember to find out how the calculating system works. Whether they use a fix or floating flower system. The flower arrangement calculation system has the same fixed interest every month until the end of the installment. By using a fixed interest rate, you can determine how much your monthly installment rate is because the amount won’t change so you can calculate how much you need to set aside to pay your monthly payday loan installment. But the downside is that when interest rates go down, the interest rates on you will not decrease.

While the floating rate system is volatile due to market interest rates. If the market interest rate goes down, then you will benefit from the lower interest rates. But if the market interest rate goes up, then the interest rate will go up as well. So if the provider is using a floating flower system, you should continue to do the calculations so that you may not be surprised if the installment of the installment suddenly increases or decreases.

## 4. Check for Other Charges Charged

Who among you often overlooks and re-reads the conditions that apply when applying for a loan? Usually we are less careful and do not check back on any other costs incurred when applying for a monthly payday loan. Is there any cost involved? These costs include administration fees, provisional fees, mattress costs, and more.

For administrative expenses, make sure that the costs incurred are paid only once during the first month of the loan or must be repaid monthly until the installment date. If there is an administration fee per month, ask clearly how much you need to pay. If you charge a lot more, then you can switch to another monthly payday loan provider that offers lower fees.

## 5. Perform Installation Calculation Simulation

The last way is to simulate debt installations first. For those of you who haven’t done it before, Miss Prism will tell you how. Specify a sample case first. Let’s say you want to apply for a loan of $ 10 million with a repayment period of 6 months. The interest rate is 0.5% per month. Try to follow the steps for counting!

- The main installment

$ 10 million (loan ceiling): 6 months (tenor term) = $ 106.666

- Flowers per Month

$ 10 million (loan ceiling) x 0.5% (monthly loan interest) = $ 5

- The Monthly Payment Due

$ 186.666 (principal installment) + $ 50k (interest per month) = $ 180.666

If you have a problem with the nominal installment of RM1.716,666, then you can extend the tenor period until the installment becomes lighter. What if we calculate if the tenor time taken increases to one year (12 months).

- The main installment

$ 10 million (loan ceiling): 12 months (tenor term) = $ 833.333

- Flowers per Month

$ 10 million (loan ceiling) x 0.5% (monthly loan interest) = $ 5

- The Monthly Payment Due

Rp833.333 (principal installment) + $ 50k (interest per month) = $ 883

The installment number is lighter, isn’t it? But if you count as a whole, the totals will be much different. Let’s just calculate for a 6 month tenure, then the total loan would be $ 1,116,666 x 6 months = $ 10,000. As for the 12-month tenor, the total installment will be Rp8333.333 x 12 = $ 10,599.996. There is a difference of Rp299,996 from the ten month period of 6 months to 12 months.

So as explained earlier, it would appear that the longer the tenor takes, the total loan becomes larger as interest rates are increased each month.

## Think About It Before You Take a Monthly Payday Loan

Applying for a loan is legitimate, but you should think carefully before taking a loan and do some calculations so that later, you will not regret taking the loan. Also, with all due thought, you are ready to set aside some funds per month to pay the installments until the end of the tenor period. Happy applying for a monthly payday loan yes Dude!