Personal Loan EMI Payments

If you have viewed the movie “Confessions of a Shopaholic”, you will know what turns out when you have lived beyond your means. Enticed by high-end fashion trend, a young woman keeps borrowing money until she drives herself to the edge of a financial adversity. Well, the film may have had a contented ending, as most films go, but in reality, no one will be as lucky as the film protagonist.

In the same manner, for many, savings are not sufficient to accomplish their dreams or meet emergency overheads. This is when they turn up to personal loans to realize their needs.

In this blog, we will discuss some useful tips that will help in Manage Your Personal Loan EMI Payments.

Concept of Personal Loan

The term personal loan denotes an unsecured loan, which intends that you do not have to put up collateral security for the loan. Further, this type of loan can be proved as a great instrument to improve the credit score while solving the short-term cash needs.

Therefore, personal loan is a great technique to meet the short-term cash requirements. The term short term includes anything from re-modelling the home to emergency medical expenditures or doing a big electronic purchase or just clearing out the pending credit card debt.

Tips to Manage Your Personal Loan EMI Payments

The tips to manage your personal loan EMI Payments are as follows:

Take a Loan Amount based on your Needs

NBFCs and Banks offer plenty amount of loan to assist borrowers meet their respective financial needs. However, it shall be noted that one must assess his/ her needs first and then accordingly apply for a loan amount.

Choose Affordable EMI Option

One of the easiest ways to manage your personal loan EMI payments is to plan an effective budget. First, get a brief idea of the available funds every month and then select a loan payment term with easily affordable EMIs. 

One can make use of a personal loan EMI calculator to determine the EMI amount for a specific loan tenure. 

Preferably, EMIs must not consume more than 30 to 40% of the total monthly income. However, if in case a person opts for higher EMI option than he/ she can afford, in that case, he/ she will eventually end up deferring or missing his/ her EMI payments, lowering the credit score, and hampering his/ her repayment history.

Never Let your Emi Payments Pile up

Once a borrower has received the loan amount, his/ her priority must be to send the respective EMI payments on time. That means never let them pile up as stock, as they may accumulate quickly and it may become problematic to pay the whole amount. 

In addition to that, if the loan cost increases with the penalties of late payment, then, in that case, the credit score also gets negatively affected.

Further, if a person faces hard time in remembering his/ her EMI due dates, then, he/ she must activate the e-mandate or choose the auto-debt facility or auto-payment facility. Also, choose a date on which he/ she wants his/ her EMI amount to be debited from the respective account.

Choose For Debt Consolidation

If in case a person is paying EMIs for various small and big loans at a same time, he/ she must be finding it problematic to remember the EMI date of each loan and he/ she may end up skipping the on time payments. 

In such a circumstance, taking a personal loan for the purpose of debt consolidation can be the best option. 

In this procedure, if a person takes one loan to pay off all his/ her old debts and now pay off EMIs only for that new loan he/ she took last. Further, the biggest advantage of this option is that he/ she no longer requires to deal with various lenders and the ultimate focus is shifted to just one single loan only. That means, that person ends up managing his/ her payments better.

Arrange High-Interest Rate Loans for Payment

It is the best way to pay off the high-interest rate loans first then low-interest rate loan. By doing this a person will be able to considerably reduce his/ her debt amount and may also manage his/ her low-interest rate loans more easily.

Can I Pay More than My EMI?

Yes, one can pay more amount than the regular EMI. The surplus amount will not only decrease the principal outstanding, but will also reduce the levied interest burden. 

Further, one can only pay one extra EMI than the normal number of EMIs every year. The said way out is an effective way to minimise the loan tenure, and in return lower the interest cost as well.

Consequences of not paying EMIs on time

Consequences if you are not able to manage your Personal Loan EMI Payments: 

  1. An Increased Interest-rate by Lender;
  2. Levy of Additional Fees and Charges on Loan;
  3. Results in Lower CIBIL Score;
  4. Lenders contact Collection Agencies for Refund of Loan Amount;
  5. Lawsuit by Lenders;


In a nutshell, loans are serious and significant financial commitments and must be taken up only when a person is confident that he/ she can manage them together with other expenses. Further, with a little planning and budgeting, one can do both, enjoy his/ her life and live within the means so that creditors never hound him/ her. 

Also, a disciplined lifestyle will help a person to repay what he/ she has borrowed, and allow him/ her to live a debt-free life.

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