3 Tips on how you can save your money better to pay for your Personal Loan EMI

The concept of the loan was introduced to provide unbiased monetary opportunities to every individual, so that lack of funds does not pose as an inhibitor of growth and development. From banks to private loan companies, to authorized lenders, there are a lot of options one can look through to borrow money for any purpose- education loan, mortgage loan, personal loan, etc.

Often, most loans require that the borrower pays an interest amount, which shall be a certain percentage of the principal borrowed amount. This is for several reasons, like the safety of loan default, inflation balance, and the purchasing power of the lender. The interest amount is calculated based on the rate of interest, which differs for every type of loan and from one lender to another.

Equated Monthly Installment (EMI) is a smart repayment option for loans or credits. EMI not only allows one to borrow money, but it also facilitates the purchase of products or services on credit, which means that the total amount can be paid in portions every month. The rate of interest is calculated in two methods –

Fixed interest rate – where the amount to be every month is fixed and is calculated at the beginning itself. The interest amount is not affected by the fluctuating market price.

Reducing balance rate- The interest amount is calculated every month considering the remaining principal balance.

Now you can calculate your own EMI split-up using Loan calculator that is available online.

It is important to repay the EMI on time every month to avoid repercussions and legal complication.

Following are a few tips discussed to help you save money better, and to pay for your personal loan EMI:-


It is better to plan ahead, and hence, it is recommended that you calculate the EMI for your personal loan before borrowing the money, to understand how much you will be required to pay every month. This will help you decide on the most optimum money to borrow, and also contemplate on how you plan to repay it. Often, people borrow the money but are then unable to repay it because they wouldn’t have considered many factors that affect their money flow. Therefore, by determining what you will be expected to pay every month will prepare you for fulfilling the repayment of the loan in the stipulated time. Use a personal loan calculator.


It is highly advisable that you allocate a certain amount for your EMI and pay it first thing at the beginning of every month. It is undeniable that liquid cash in hand is very volatile, you can never predict when you might run out of money during the month. In order to prevent that, it is best to pay your EMI as early as possible in a month. Dragging it till month ends can be problematic, especially if your salary is monthly based.


EMI is to be paid monthly, and the interest amount depends on the number of months the loan money is divided by. Hence, by opting for the shortest duration within which you will be able to repay the entire loan amount. You can also pay more than one EMI per month sometimes to repay your loan quickly. With a shorter loan tenure, you will be paying significantly lesser interest amount, irrespective of the interest rate. You can calculate the monthly instalment using a personal loan calculator.

By considering the above-mentioned tips, you will positively be able to pay your EMI more easily.