How to Avoid Missing Personal Loan EMI

These days, taking a personal loan is one of the most essential financial decisions you can make. Not only do these loans provide you with quick financial assistance, but they also do not require any collateral. Means no more putting your assets at risk to get financial assistance. 

However, one thing you must keep in mind when loan applying is EMIs. This is because missing an EMI can lead to severe monetary consequences, like a damaged credit score or late fees. But don’t worry! You can easily avoid missing your EMIs by following a few simple tips. 

Wondering how? Let’s find out. 

What are EMIs?

EMI stands for Equated Monthly Instalment. When you take out a personal loan, the loan amount is divided into equal instalments over a fixed repayment tenure. These instalments are what we call EMIs. So, when you borrow a personal loan, you’re agreeing to repay the loan through regular monthly instalments. 

Benefits of EMIs

EMI is the concept that involves paying in small, manageable instalments. It provides various benefits to both you and your lender. Here are some of the advantages: 

• Affordable Repayments: EMIs divide the loan repayment into smaller, manageable amounts, making it easier to budget instead of paying a large lump sum.

• Predictability: With fixed EMIs, you know how much you need to pay each month, which helps you avoid surprise expenses or last-minute rushes.

• No Burden on Finances: If you do not have enough savings but need urgent cash, an instant personal loan with a predictable EMI structure can serve as your lifeline. 

• Improves Credit Score: Paying your EMIs on time can positively impact your credit score, showcasing your financial discipline and trustworthiness as a borrower.

• Flexibility: EMIs provide flexibility in terms of loan tenures, allowing you to choose a repayment plan that best suits your financial situation.

Tips to Ensure You Never Miss a Personal Loan EMI

EMIs make repaying a loan much easier, but that doesn’t mean it’s always smooth sailing. Not paying your EMIs on time can be troublesome for you. Here are some simple strategies that can help you avoid missing loan EMIs: 

Set Up Automatic Payments

One of the easiest and most effective ways to avoid missing an EMI is by setting up automatic payments. This ensures that your payment is made on time every month, even if you forget about it. With a personal loan or other financing options, you can easily set up your automatic payments. 

Create Payment Reminders

If you prefer manual payments, set up reminders for your EMI due dates on your mobile phones. You can do this by using calendar apps or downloading specific reminder apps to alert you a few days before your EMI is due. This gives you sufficient time to prepare your finances and avoid last-minute troubles. 

Ensure Sufficient Funds in Your Account

A common reason for missing an EMI is insufficient money in your account. Before your EMI due date, check your account balance and ensure you have enough cash to cover the payment. If you expect any delays in your salary or income, transfer the amount in your account ahead of time.

Review Your Budget Regularly

Managing an EMI requires good budgeting. Regularly reviewing your finances ensures that the loan repayment is included as a part of your monthly budget. Effective budgeting helps you avoid missed payments and supports you in managing other financial obligations effectively. 

Use a Loan Management App

You might also want to explore loan management apps. These apps help you monitor the status of your loan application, track payment schedules, and set reminders for upcoming EMIs. With notifications for due payments, these apps offer a convenient way to stay on top of your financial commitments. 

Understand Your Loan Terms

When applying for personal loans, it’s essential to have a clear understanding of the terms and conditions. This includes eligibility for personal loans, hidden costs, repayment terms, and more. This helps you stay prepared and makes you aware of the potential consequences if you miss a payment. 

Wrapping Up

Just buying an instant personal loan is not enough; it is also essential to make your repayments on time. Missing your EMI can put a strain on your finances. However, you can easily avoid this by staying organised, setting up reminders, and using loan management apps.

If you’re considering applying for a personal loan, check out the True Balance loan app. It allows you to borrow up to ₹2 lakh with competitive interest rates starting at just 2.4% per month. This app offers a fully digital application process, eliminating the need to wait in long queues. Additionally, True Balance provides flexible repayment terms and foreclosure options, making it easier to manage repayments according to your budget.

Download the True Balance Loan app today and start tracking your EMIs easily!