Personal Loan

Best Way to Plan Your Personal Loan EMI Repayment


Personal loans can be used during any financial emergency. It is one of the best ways to get money to deal with an unforeseen situation. Many banks and financial institutions provide personal loans at attractive interest rates without any collateral. This makes it a go-to option for those who are looking for cash at the last minute.

Applying for a personal loan is quite easy. If you have a good CIBIL score, your application will be accepted. The crucial part begins after you receive the loan amount. Your personal loan EMI will become an integral part of your monthly expenses for the chosen loan period. 

To maintain a good relationship with your lender, it is essential to pay your EMIs on time. Your personal loan repayment will also affect your CIBIL score. If you pay all your instalments on time, you will not only become a valued customer of your lender, but your CIBIL score will improve as well. 

Are you worried about managing your personal loan repayment every month? Do not worry. We will provide you with some good tips to manage your EMI and pay them on time. Read on to known how to plan your EMI to ensure hassle-free payment of loans.

Tips to Plan Your Monthly Personal Loan EMI

  1. Borrow as per your repaying capacity

This is often a common mistake made when applying for a loan. It is important to apply for an amount that you can comfortably pay off. Your personal loan EMI will be an unavoidable part of your monthly expense till the loan is repaid. The EMI should not take a hit on your monthly budget. Try to use an EMI calculator. It will help you adjust your loan amount, EMI each month, Interest rate, and loan tenure. You can use it to choose an amount you can comfortably pay each month.

  1. Set aside an emergency fund for your personal loan repayment

Missing your EMI payments can attract a penalty from the lender. It can also lead to an increase in your future EMIs and interest rates. A backup emergency fund will help you stay on track with your EMI payments. It can be small savings that can help you pay an EMI or two. You can even use it to pay off your loan early. This will help you save money on interest. A backup emergency fund is extremely essential to ensure that your EMIs are not delayed. Make sure you always have some liquid cash or other valuables to rely on in case of emergencies. You can create an emergency fund by investing in gold coins, mutual funds, or a bank’s savings/recurring account. 

  1. Plan your monthly budget by including your personal loan EMI

Including your personal loan EMI in your monthly budget will ensure that you pay them on time. Planning your EMI around your monthly budget is the best way to ensure that the loan is repaid on time.

Drawing a monthly budget is a good way to handle your finances each month. Make sure that you have a percentage of income set aside as savings. Ideally, your monthly expenditure should not exceed more than 70% of your income. This should include your EMIs as well. You can keep the remaining 30% aside as savings or investments. 

  1. Try to make additional repayments with bonuses or extra income

You can make additional repayments apart from your personal loan EMI with any extra income you may receive. This may be a wise decision as the sooner you repay your loan, the lower interest you will pay. Also, repaying your loan early will positively impact your credit score. If you have had an increase in income during the tenure of your loan, you can opt for a higher EMI. If you are planning to pre-close your loan, make sure to check with your lender. Most banks and banking institutions levy pre-closure charges on personal loans. 

  1. Do not opt for more than one personal loan at a time

Managing multiple personal loan repayments can be difficult. It may be wise to close one personal loan before you apply for another. Multiple personal loans can not only affect your monthly budget but also take a hit on your savings. If you have multiple loans, you can join them into one loan. Adjust it to a larger tenure at a lower interest rate for easy repayment.

  1. Restructure your loan in case of repayment difficulties

If you are finding it difficult to pay your personal loan EMI every month, you can talk to your lender. Instead of delaying payments, speak to your bank to adjust your tenure. A longer tenure will help lower your EMI, making it easier to pay. In many cases, banks are even willing to lower the interest rates for you. Reaching an amicable solution will lead to a better experience for both you and your lender. 

  1. Choose the right lender

Often, people go for lenders who offer the lowest interest rates. However, they may have other hidden fees and charges. Always opt for a lender that provides you with the best service. A low-interest rate and no hidden charges and fees will make sure that your hard-earned money is not wasted. Choose a lender that is ready to make adjustments to your loan as per your requirements. A lender that values its customers will ensure you have a hassle-less experience throughout. 


You should always treat financial obligations like personal loans as a priority. It is important to plan your finances accordingly. Many choose to repay their personal loan EMIs through extra income such as interest or bonuses received on their investments. This way, you will not have to worry about it being a part of your monthly budget. To achieve this, it is important to invest your money wisely and let it grow. Talk to your financial advisor today for more details on the best ways to repay your personal loan EMI.

If you are looking for a personal loan provider, Piramal Finance could be one of your options. Visit their webpage for more details on personal loans and other finance options. You can also check their products and services and read informational articles posted there.