Tips to Keep Your Personal Loan EMI Payments Under Check

Adhering to your personal loan EMI repayment is one of the most important components of taking out a personal loan. Whether it is a short term personal loan or a long-term one, the consequences of missing payments can be fairly severe. The approval rate of your personal loan stems from how high or low your credit score is. If you miss EMI payments, your credit score will suffer and lenders will hesitate to provide you with a future loan. Repaying EMIs on time is the key to maintaining a good relationship with lenders in case of any future loan needs. 

In addition, missing EMI payments on your loan can result in payment penalties. Your lender and you will have agreed to a penalty amount or percentage in case of missed payments. Continually missing loan repayments can cause the amount of interest you must ultimately repay to increase significantly. Although personal loans are generally unsecured loans, in some cases, you may need to attach some collateral. This circumstance generally arises when an individual has taken out multiple personal loans. If you miss your EMI payments on a loan where the collateral is attached, there are chances the collateral will be seized. 

Finally, non-repayment of EMI in extreme cases can lead to legal ramifications. Such a scenario should be prevented at all costs, as it greatly complicates your future financial plans and lands you in a lot of trouble. There are several tips you can keep in mind to ensure you repay your short-term personal loan on time.  

Tips To Manage EMI Payments  

Choose An Affordable Personal Loan Plan: 

Before even taking a loan, calculate your EMI online via the amount you wish to borrow, the interest rate, and the tenure period. Ensure that discussions with your lender allow you to assess if the personal loan on offer is affordable and sustainable. If the EMI is too high as per your monthly income and expenses, try reducing the loan amount or extending the tenure period. 

Prepare An Emergency Fund: 

Having an emergency fund prepared can be crucial in ensuring you don’t miss your EMI payments. Occasionally, a financial emergency can arise that can result in unexpected expenses. If you plan to set up an emergency fund, try to maintain an amount that equals roughly six months of your income. By doing so, you will always be on track to repay your short term personal loan in the stipulated time.

Temporarily Pause EMI Payments: 

If faced with complicated circumstances, one of the best actions can be to ask your lender to temporarily pause EMI payments. If the reason you provide the lender is valid (such as a layoff), most lenders will agree to pause EMI dues for 3 to 6 months. During this time, you can improve your financial condition or deal with any financial emergencies without taking a hit on your credit score or accruing missed payment penalties. 

Communicate With Your Lender: 

Keeping strong channels of communication with your lender forms a transparent relationship full of understanding and goodwill. If for some reason, you are having trouble making your personal loan EMI repayment, you can reach out to the lender and explain your situation. The lender may lower the EMI for that month, especially if you have a strong repayment history. Make sure to contact your lender well in advance of your EMI due date.

Prepay Your Loan: 

For most loans, there is a certain stipulated period after which you will change the prepay your loan without incurring any penalty costs. Find out you’re your lender and what that time period is. Even partial prepayments of a personal loan can help prevent missed EMI payments in the future. 

Ask Family and Friends for Help: 

As a last resort, you can rope in either family or friends to assist you pay off EMIs while you are having financial difficulties. You can always repay them once your situation has improved. 


Missing out on your personal loan EMI repayment is never a good idea. The consequences can be severe and it will damage your ability to apply for short term personal loans in the future. Missing EMI payments can also result in higher total payments, legal issues, and loss of collateral. Thankfully, there are many tips and strategies you can employ to make personal loan EMI repayments on time. 

Ensure that you choose an affordable short term personal loan that is suited to you. By assessing your monthly income and expenses, you can choose an EMI plan that does not cause excessive financial burden. Always keep an emergency fund on hand. Keeping strong channels of communication with the lender can result in a lowered EMI or a temporary pause on payments in times of financial difficulty. Once prepayment is an option, you can pay the loan in larger amounts to ensure less financial stress in the future. Follow these tips to keep your personal loan payments under check so that you can fulfill your initial financial objectives! 

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