How to Time Your EMIs To Avoid Missing Any Monthly Instalment?

personal loan online

An EMI (Equated Monthly Instalment) is one of the major factors that borrowers must consider before going ahead and taking Personal Loans online. 

Whether you wish to purchase a car or a property, or fund other personal expenses, EMIs play the most vital role in loan repayment. 

So, the real challenge of taking any loan is managing the EMIs and avoiding financial duress. That’s why before you avail any loan, make sure to check how affordable the EMIs will be using a Personal Loan online EMI calculator. 

This will help you plan your repayments and get a clear picture on how much down payment you’ll need to make. Before moving on to timing your monthly instalments, let’s see what happens if you miss paying EMIs on time.

Consequences of Being a Loan Defaulter

You must be clear on the repayment plan you are wishing to adopt, and in case you miss any deadlines, this is what will likely happen:

  • You’ll need to pay a late payment fee, or your Personal Loan interest rates could rise as a penalty. 
  • Your account will get shortlisted as a defaulter by lending institutions and later be deleted from their books in the event of you taking an unsecured loan. 
  • In the case of secured loans, the collateral you’ve put up may be seized. Also, credit providers have the right to resell the same. If the value of the collateral exceeds the loan amount, the remaining will get credited to the debtor. 
  • Ultimately, your credit rating drops, which can make you ineligible for availing other loans in the future.
  • Consequently, after repeated calls, emails, and personal visits from the lending institution’s side, you’ll get a letter from their attorney if you cannot repay. Your case will be made public and taken to court. 
  • All of this can cause immense stress, which can be avoided with a little planning.

Golden Tips for Scheduling EMIs Against Loan Repayment to Avoid Defaults

Why undergo the duress of non-payment after applying for a Personal Loan online? It’s best that you plan well in advance before applying for a loan. Here’s how you do it:

  1. Plan your budget: Before taking a loan to meet any requirements, see if you’ll be able to repay the EMIs on time. Don’t borrow funds if you think you won’t be able to manage EMIs. 
  2. Compare loans: There are many loan options available to borrowers today, and all you need to do is go online and search for institutions providing Personal Loans. Compare their EMIs and calculate the monthly layout and overall repayment amount. This can help you choose whether you need a fixed-rate loan scheme or a flexible loan term and be better prepared for what lies ahead.
  3. Stop spending extra: If you tend to buy exorbitant things every now and then, there’s nothing wrong with it. However, you could consider putting off a few big buys to avoid a financial crunch in the middle of your loan tenure. Before giving in to impulsive buying, we can always take a moment to think whether we really need what we want.
  4. Opt for shorter loan tenures: Suppose your finances let you avail a loan for a shorter period, do it as it will reduce the Personal Loan interest rate. So, in case your salary rises and your savings increase, use this opportunity to prepay your loan. 
  5. Go for part payments: This method reduces EMI and interest repayments. But ensure you have surplus funds to ease financial burdens. And assure the lending institution that you can repay the entire loan. 
  6. Have a contingency fund: In case of an emergency or if you’ve lost your job, you must have some funds set aside. This will help you repay your EMIs during trying times.
  7. Check for EMI-free periods: For borrowers who lose their jobs or those who have to wrap up their business on a short notice, some non-banking financial companies (NBFCs) like Poonawalla Fincorp provide a grace period, after which borrowers have to resume paying their EMIs.
  8. Map your EMI: If you’ve borrowed multiple loans, repay the ones with a more significant EMI (like Personal Loans, credit cards, etc.) and then the rest. 

It’s your call now!

After availing Personal Loans online, non-repayment of EMIs can cause a lot of stress to you and your family. Therefore, it’s always a wise option to plan your finances and expenditures to assess whether you have enough to repay the EMIs on time and enjoy a stress-free loan tenure. 

By admin

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