A personal loan is easily available through all the leading banks and NBFCs and a large number of people are going for it. It’s easier availability and unsecured nature makes it easy and comfortable for the borrowers to go for it. However, the only thing which pulls people one step behind from availing this loan is its high-interest rate. Though the high-interest rate is justified from the lender’s point of view, and that point is lenders are at high risk regarding the repayment of the loan as they don’t have any collateral or security against their lending. It seems scary to many of the people to go for a loan for which they will have to repay much more on the interest.

However, even after considering all these factors opting a personal loan or an online personal loan is not a bad idea when you are in a medical emergency or when you need it for a reason which is the need of time or when you can get better results in future by opting it. Such reasons are a requirement of funds for higher education, medical emergencies, urgent travel n all. Opting for a personal loan for maintaining a lifestyle is a bad idea but still, you can go for this.

How can a Personal Loan be Helpful for Your Lifestyle

When you go for a personal loan whether for a justified reason or not, its repayment may be a reason for your worries and tension. Only a few are aware of the fact that opting for a Smart Personal Loan Repayments can Save Your Money. Let u know the smart personal loan repayment option by which you can save on!

Smart Repayments Options

The first step towards your saving begins with analysing and calculating the EMI which you have to pay for your Personal loan. At first, you should analyse your requirement that how much exactly you need, then the second thing which you should do is to analyse that in what time you can repay the borrowed amount without affecting much on your daily lifestyle. You can use Personal Loan EMI Calculator to calculate your EMI in advance. This will help you to get an idea about your EMI before you borrow. This can help you to plan your finances in a better way.

Step-Up Repayment option

It’s a repayment option to the borrowers where one can increase the EMI of their loan with the increase in the tenure period. This repayment option is suitable for those borrowers who are confident about an increase in their income in the near future. As nowadays in private jobs people get a good increment with the growing experience and job switch, in this case also step- up repayment is favourable as there will be a guaranteed increase in the income and hence they can increase the EMI towards their loan too. In such a case increasing EMIs will not affect their finances and daily lifestyle. Most importantly they can save a lot of interest with this option, as when they will increase the EMI there loan will end soon which can save a lot on the payable EMI.

Tips to Manage Your Personal Loan EMI Payments

Step-Down Repayment option

It’s a repayment option to the borrowers when one can decrease the EMI with the increase in the loan tenure. This repayment is suitable for those who want to end their loan soon and want to have stress about the repayments in the future. Borrowers who are close to retirement can opt for this option as with retirement the income will be reduced. Hence, it is the best time to repay the major part of the loan when you are earning well. This option is also suitable for those people who have a good source of income presently and are not sure about the future.

Bullet Flexi EMI

Opting for this option provides you the option to pay principal amount along with EMI’s, this can help you to repay your personal loan faster. If you are in a position to get money in lump sum amounts in near future you can choose this option. This will help you to repay your personal loan in a faster way.

Opting for Prepayment

A prepayment is basically a settlement of a loan during its instalment payment before the official due date. A prepayment can be made in two ways- 1st it can be made for the entire balance or second option is it can be made for the outstanding amount of a loan for an upcoming payment. In a prepayment, the payment is made in advance of the date for which the borrower is obligated to do. When you prepay you actually repay the loan in shorter duration comparatively which you were supposed to do. Hence this helps to save on the interest which you would have paid monthly on those EMIs which you don’t have to pay now.

Is Personal Loan Pre-payment Always Advantageous?


Part payment of a personal loan can be done when you have a lump sum amount of a particular money. The lump sum money is not equivalent to the entire principal outstanding borrowed amount. Part payment works as it brings down the unpaid principal amount. This in result brings down your EMIs and the total interest you pay for the loan. However, it is important to know that this option works only when you make a significant amount of lump sum money as part payment, otherwise, it does not help.

This is an easy and effective way to save money on your interest as the part-payment amount directly gets deducted from your Principal Outstanding amount.

Fee and Interest for Late Payment of EMI and Other Charges of Personal Loan Repayment

Late payment charges and penalties should also be a criteria for which you should look before you opt for a personal loan.  When you opt for a loan you are not sure that where you will default with its payment or not. However, no one wants to be a defaulter as it affects you in one way or the other. Firstly it affects your CIBIL score and moreover, you are charged some penalties from your lender. If it is one or two it’s ok as it can happen, but when you default with more it may sum it up into a large amount. This can affect your finance in an adverse way and can be a cause of stress. To avoid this situation and save your money you should look for this before you opt for a personal loan. Select a lender which always maximum penalties and whose late payment charges is minimum.

Fore-closing Your Personal Loan? Read This First!

Along with choosing the appropriate repayment option for your personal loan to save money, we would suggest you for small changes in your lifestyle and to have a financially disciplined life during the tenure of your personal loan. This can help you to repay your loan in a better way without any hassle.

The first step towards this is to keep a watch on your expenses including small and major one.

    • Make a budget every month
    • Choose your EMI plan accordingly which suits you
    • Be prompt with your loan repayment
    • Repay the loan as early as possible.