Practical tips to manage your personal loan EMIs effortlessly

A personal loan provides quick and easy access to funds, which you can use to fulfil your goals. You can use a personal loan for anything, including purchasing a new gadget or paying medical expenses. However, this comes with the obligation to pay Equated Monthly Instalments (EMIs), and that too on time. When you take a personal loan, you must be confident in your income and capacity to repay the loan.

Here are four tips for managing your personal loan EMI:

  1. Evaluate your repayment ability

Before taking a personal loan, consider your income, savings, and future plans. Once all your personal expenses have been considered, calculate your EMI. Your EMIs should ideally not account for more than 40%-50% of your income.

To make things simpler, use a personal loan EMI calculator to see exactly how much you would need to pay for the loan each month before you apply for a personal loan. Only apply for a high-value personal loan if you believe you can comfortably pay the EMI amount after meeting your monthly expenses.

  1. Have a good credit score

Your creditworthiness as a borrower can be determined using the CIBIL score. It is a three-digit score that represents your credit history in the past. A CIBIL score of 700 or more is typically regarded as a good score.

Maintaining a high CIBIL score will assist you in obtaining a low personal loan interest rate, resulting in lower monthly instalments. Maintaining a high CIBIL score can be achieved by making on-time EMI payments.

  1. Opt for longer loan tenure

The loan tenure has an inverse relationship with the EMI amount. Longer loan tenures might result in lower monthly payments and vice versa. Let’s say the EMI payment is greater than what you earn monthly. If so, choose a longer loan term to lessen your overall financial load when applying for a personal loan.

  1. Never miss your EMIs

Your credit score is impacted by missed or late payments, which will affect the loans you are eligible to apply for in the future. Thus, your EMI payments must be made on time.

If you pay using a cheque, remember to deposit the cheque on a specific date every month. Put a phone reminder if required. If the payment is automatically withdrawn from your bank, make sure your account has enough money to cover the payment of your personal loan EMI on time. Penalties may apply if a personal loan is defaulted upon or paid late.


Despite having a higher interest rate, personal loans are the simplest and most convenient financing products to opt for in times of need.  Remember to carefully assess your income and costs when applying for a personal loan. Some institutions provide attractive interest rates, flexible repayment options, and practical EMI schedules on personal loans. So, make sure to do your research and compare different lenders. Also, to ensure that you never miss a payment throughout the payback period, use an online personal loan EMI calculator and receive a more accurate picture of your EMI amount.

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