Smart tips to repay less EMI on personal loan

Personal loans are unsecured and do not seek collateral pledged against the loan amount. Many leading banks and NBFCs offer personal loans at attractive interest rates and flexible terms. The borrower can use the loan amount as per their needs and requirements. Personal loans are thus a much sought-after loan product by borrowers to take care of their financial emergencies. 

But, a personal loan is a liability repaid in equated monthly instalments. These EMIs can become burdensome over time and may cause a hindrance to your financial goals. Here are some tips to help you save money on the EMIs of your loan.


The foremost thing which affects the EMI is the borrowed loan amount. Higher the borrowed sum, the more the EMI that the borrower is liable to pay every month. One must apply for the loan amount required to face the financial crunch. A good credit score makes you eligible for a higher loan amount, but it is advisable to stay true to your needs and borrow only the needed amount. Calculating the actual loan amount before applying for the loan helps reduce the EMI and makes the repayment easy.


The loan tenure and EMI are inversely proportional to each other. The higher the loan tenure, the lower will be the monthly instalment. The interest outgoing will be more if you opt for longer loan tenure. So, if you want to save on the money which will go as interest, you should go for a shorter loan tenure with considerably higher EMI. If you cannot afford a higher monthly instalment, then opt for a high loan tenure. Carefully chalk out your monthly finances and opt for an EMI that you can pay off comfortably.


Failure in repayment of EMIs can hamper your credit score badly. The credit score defines the creditworthiness of the borrower. A dent in the credit score reflects poor debt history, and one may also have to face rejections to future debts by lenders. It is thus crucial to maintain one’s credit score by making the repayment timely without bunking on any EMI. A good credit score helps in grabbing a low-interest deal from lenders. Low-interest rate automatically reduces the EMI and the overall cost of the loan. To avoid missing the EMI payment, one can opt for an automatic payment system or SMS reminder service provided by lenders.


A personal loan is easy to procure with minimal documentation requirements and a simple application procedure. The interest rates are also attractive. Quick loan approval and sanction add to the many pros of personal loans. These factors can often misguide the borrower to make a hasty decision on the loan amount. Before taking a loan, one must make the necessary calculations to manage their finances. Online portals of most lenders offer an EMI calculator to estimate the monthly instalment on account of the loan amount, interest rate and loan tenure. Personal loan EMI Calculator offered by Fintechs like LoansJagat, lets borrowers compare different lenders for their offerings and make an informed decision.


A personal loan helps in consolidating multiple debts into one. Debt consolidation loans are the most suitable option if one has many loans with varied EMIs that are difficult to track and manage. Consolidating several ongoing debts into one helps to repay the debts comfortably with a reduced EMI amount.

Be smart and do all the calculations before applying for a personal loan. Use a loan enabler like LoansJagat to apply and compare loan offers. Get a debt consolidation loan for your multiple loans. It will not only help to manage the loan properly but will also aid in enhancing the credit score.

Shehroz Hassan

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