Personal Loan: Minimise Your EMIs By Using These Straightforward Strategies

A Personal Loan for women is a great way to meet various financial requirements without compromising assets. Many women borrowers procure these unsecured loans for various reasons, whether for a medical emergency, pursuing higher education, renovating their house, going on a dream vacation, or covering wedding expenses. 

Leading NBFCs in India, like Clix Capital, provide flexible loan plans with convenient repayment terms, giving individuals instant access to funds, helping them plan their finances according to their needs.

Nowadays, everyone wants to save money and minimise the cost of borrowing a loan. So, it’s natural for borrowers to wonder how they can minimise their Personal Loan EMIs. Reducing the EMIs decreases the overall debt burden and allows borrowers to save money for better use. So, here are a few straightforward strategies to minimise Personal Loan EMIs effectively.

  • Borrow an Adequate Loan Amount

The loan amount is directly proportional to the EMIs to pay each month. Hence, getting the right loan amount is the most basic way of keeping EMIs within budget. While applying for a Personal Loan for women, aspiring borrowers should decide on a loan amount after evaluating necessary expenses only that they cannot fund themselves. 

Although applicants with a good salary and high credit score may qualify for a bigger loan, they must apply for an amount they really need. Avoid over-borrowing and be prudent while borrowing money to make the EMI payments easy. However, remember that changing the loan amount is possible only before disbursal. So, create a detailed account of intended expenses, decide on an adequate loan amount, and then start the application process. 

  • Opt for a Longer Repayment Tenure

Most Personal Loan providers are flexible with repayment terms, allowing borrowers to select a loan term with conveniently repayable EMIs. Remember, the loan repayment tenure is inversely proportional to the EMI amount to be paid each month. That means a longer term reduces the EMI amount and makes repayment more manageable. 

When a borrower chooses a longer loan term, the total loan cost gets divided over a longer period, reducing the payable amount as EMIs. However, a longer term means that the borrower pays the interest rate for an extended duration, thus increasing the interest outgo. So, be careful and use an online Personal EMI calculator before finalising a loan tenure to get the best repayment scheme.

  • Make Prepayments to Reduce the Loan Burden

Loan prepayments go a long way in reducing the loan cost and making repayment more manageable. If the borrower receives a salary hike, bonus, or a monetary gift or saves enough as surplus funds, they can make a part-prepayment for the loan. Since a higher outstanding balance attracts a higher interest rate, a prepayment greatly reduces the principal balance and cuts down the loan tenure. It eventually results in lower payable interest and reduces the loan burden. 

  • Never Miss the EMI Due Dates

An individual’s repayment history is crucial in determining their loan interest rates. Missing the EMI due date decreases the borrower’s creditworthiness and makes future loan procurement more hassled. Missing the due dates also makes the upcoming EMIs more expensive, as the lending institutions will levy penalties due to late payments. 

Making notes of the due dates and prioritising EMI payments before them is the best way to pay off the EMIs and avoiding these penalties. Alternatively, borrowers have the option of activating the e-mandate with their bank. By doing that, they give standing instructions to deduct the EMI amount automatically from their bank account before the due date. That way, they don’t need to manually remember the due date each month to pay the EMIs. Keeping pace with the due date helps build the credit score, reduces the loan burden, and fetches the best interest rates for future loans.

  • Revise the EMIs Regularly

Lending institutions have unique sets of rules and regulations for EMI repayments. Some NBFCs allow borrowers to revise their EMI payouts at regular intervals. Borrowers can use this policy to review their EMIs according to annual salary cuts or hikes. For instance, if they get a raise in their monthly income, they can calculate and increase the EMI amount to pay off the loan faster. 

As a general rule of thumb, increase the EMI amount by 5% for every 10% hike in the monthly salary. Although reshuffling the monthly EMIs time and again seems like a hassle, it reduces the loan burden significantly while keeping the repayment within budget. 

  • Prioritise the EMI Payments

Besides loan EMIs, individuals might have other non-negotiable expenses they must accommodate within their extra savings. These include rent, mortgage, insurance, education, utilities, etc. Even the best intentions to clear the debt might fail if the borrower does not know how much they need to pay in EMIs while still fulfilling other financial obligations. So, the borrower must list all these commitments and prioritise them per their interest rates. Start paying off the highest-interest debt first to receive high spare funds to handle low-interest loans. 

  • Opt for a Balance Transfer

Many female borrowers opt for a Personal Loan for women when they need some extra cash to cover various expenses. However, different NBFCs offer different interest rates according to their policy and the applicant’s credibility. After borrowing a loan, if the borrower finds a better loan deal with lower interest rates or easier repayment terms, they might consider transferring their loan balance to the new NBFC. Those who pay their EMIs on time and maintain a good credit score can transfer their loan to a new NBFC at better interest rates to save money and minimise the EMI burden.


These strategies will help make smarter borrowing decisions when applying for a Personal Loan for women. By making intelligent and well-informed financial decisions, borrowers can reduce their EMI payout and close their loans quickly while saving money. So, choose the loan plan carefully, crunch the numbers, and select the best lending institution. By ensuring low EMIs, borrowers can avoid a Personal Loan from becoming a financial burden and maintain a strong credit score simultaneously.