4 Ways To Always Make Timely EMI Payments On Your Personal Loan



Millennials, like you and me, are so caught up with our daily professional lives that we tend to ignore our financial priorities. We fail to set up a budget, miss out on loan repayments, miss due-dates of our credit card bill payments and also never bother to check our credit bureau score status. What will happen if we experience a financial emergency? We borrow from our colleagues? Borrow from friends & family? Though you would think of asking for funds from near-and-dear ones, there is a better alternative for quick funds which will save you the awkward run-ins with family or friends. Apply for a personal loan at Loan Singh.


Why apply for a Personal Loan?

Applying for a personal loan via Loan Singh is a great option to handle sudden financial needs. Loan Singh’s digital lending platform easily allows you to apply for a loan, get instant approval and have the funds in your designated bank account within 48 hours. Isn’t that what we all desire? Quick funds in your account, without any hassle? No paperwork, and no to-and-fro commuting between banks. Personal loan is an unsecured loan which means no mortgage or guarantee is required.

Loan Singh’s digital lending platform offers online personal loans with no paperwork, few documents and less verification time, making it the perfect source for emergency funds. Personal loans can be availed by salaried professionals for a number of reasons such as purchasing high-end gadgets, planning a holiday trip, home improvement, medical expenses or celebrating a dream wedding. Some advantages of personal loan are:


It is unsecured – As mentioned earlier, personal loan is an unsecured loan. There is no mortgage of assets required to apply for a personal loan. This gives personal loan an edge over secured loans because even if you don’t have any fixed assets to apply, a personal loan can come to your rescue in times of need.


Easily availed – With Loan Singh you can get an online personal loan with PAN Card and latest 6 months bank statement, making it a faster option compared to banks.


Multiple purposes – Unlike home loans where you can use the amount credited for only construction or purchase of a house, personal loan can be used to purchase household appliances, electronic gadgets, holiday travel, home improvement or renovation, relocation of job or medical expenses.


The personal loan has to be re-paid back to Loan Singh in the form of periodic payments (which includes the principal plus interest). This periodic payment is called Equated Monthly Installment (EMI).

The repayment of a personal loan depends on your income and repayment capability.

While applying for the personal loan on www.loansingh.com, you can actually calculate what can be your monthly EMI. Simply go to www.loansingh.com and click on the Loan EMI Calculator icon.


What is an EMI?

From Loan Singh’s perspective, if you are a salaried professional, there is low risk of default because thanks to the steady income you can make regular payments each month. An EMI is a fixed amount that you as a borrower need to pay to Loan Singh every month until the loan is repaid. It is essentially made up of 2 parts – The principal amount and the interest over that principal. This is then applicable across each month of the personal loan tenure. The EMI has to be paid to Loan Singh before the assigned due date. The EMI is preferable paid using Internet banking or NEFT.


EMI Calculation

You need 3 things to calculate your EMI – the loan amount, the interest you are levied to pay and the total period in which you and Loan Singh are okay to complete the loan repayment.




Here P is the Personal loan amount, R is the yearly rate of interest and N is the loan tenure period.



From Loan Singh’s perspective, if you are a salaried professional, you are showing a capability to make the EMI payments regularly. But making sure the loan EMI payments are done regularly without fail is based on your self-discipline. You can easily track your EMI payments and due-dates through Loan Singh’s loan management system.


Choose the EMI carefully. Ensure you have the financials in place to be able to make prompt periodic EMI payments every month. In case you are not serious enough to oblige to Loan Singh’s repayment policy, then best is you do not apply for the loan. Banks usually charge a prepayment penalty for clearing the loan ahead of tenure completion. Ensure that you do not delay in your EMI payments as this could lead to a penalty.


Failure to pay EMI on time

It is important that you take the timely payment of EMIs seriously. Ensure a stress free loan repayment process. If you do however fail to pay the EMI on time then the following would happen,


Credit bureau score – Missing an EMI payment can affect your credit bureau score badly. Credit bureaus maintain the records of your financial information collected from financial institutions. If you miss out on an EMI, you are indicating that you are not prudent enough with your loan responsibilities.


Risky borrower – Along with the drop in credit score points, you will also be tagged as a ‘risky borrower’ by the credit bureau. This will affect your chances of getting a loan approved in the future because banks and Loan Singh will look at how you maintain your credit history and wouldn’t want to lend to a risky borrower profile.


How to pay EMIs effectively

Let us look at some finance management tips that can help you manage your finances better and stay prompt with your monthly payments.

  1. Prioritize debt payments– Ensure that you are extremely prompt while clearing loan EMIs and other credit related payments. With all these payments getting registered with credit bureaus, it is important that you pay off debt payments to prevent a negative credit history and a fall in your credit bureau score. Keep reminders on your phone or login to the Loan Singh dashboard to keep track of the due-date and impending EMI payments.


  1. Build a budget – A better way to control your finances is by creating a precise budget and sticking to it. A well planned budget will help you prevent spending. Your budget should include all your expenses – big or small. Tweak your budget according to the rise in your income. Revisit your budget every 6 months at least. Although it can be difficult, especially if you have high spending habits ingrained, a budget should be your priority to make your personal financial management work. This includes loan EMI repayments.


  1. Track your expenses – Expense tracking is a habit that will ensure you keep track of daily, weekly or monthly expenses. This is important because in case you overshoot your budget, you won’t have the funds needed to pay the loan EMIs on time. Keep track of your bank account balance, store all your bills, ATM receipts, invoices etc. so that you can match these values with your expense tracker. The tracker can be a spreadsheet or a diary. Categorize the expense with type, date and purpose. You will get to know how much you spent last week in restaurants or how much fuel goes into your motorcycle each week etc.


  1. Rainy day funds – An emergency fund gives you breathing space should a calamity strike. It will prevent you from looking for other options to pay your loan EMI, as well. Clearing a personal loan is a debt. It is best you clear only one instead of thinking of paying loan EMIs with your credit card limit. That is a big No!


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