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6 Benefits Of Paying EMI On Time And How To Plan It

Published on Aug 10, 2023Updated on Jan 30, 2024

6 Benefits Of Paying EMI On Time And How To Plan It

EMI, or Equated Monthly Installment, is a convenient way to pay for big-ticket purchases or investments, such as a home or a car. With online EMI payments, you can break down the cost of the purchase into smaller, more manageable payments that you make each month.

Paying EMI is a common financial commitment for many people who have taken loans for various purposes. It is a convenient way to repay loans in small Instalments, spread over a period of time. However, it is important to make these payments on time, as there are several benefits to paying EMI on time. In this blog post, we will provide tips on how to plan your EMI payments effectively to avoid any financial stress.

Benefits Of Paying EMI On Time

1. Improved Credit Score

Timely EMI payment contributes positively towards your credit score, which in turn affects your creditworthiness for future loans and credit applications.

2. Reduced Interest Charges

Late payments lead to additional interest charges and penalties, which can increase the overall cost of the loan. Paying on time reduces the interest burden and saves you money in the long run. Moreover, if you have a history of repaying your EMIs well in time, then your next loan can be availed on lower interest rates since the lender can trust you with their money.

3. Avoidance Of Late Fees And Penalties

Delayed payments often attract late fees and penalties, which can further increase your debt burden. This is because the lending institution has put its money at stake in your profile and a delay in EMI payment means more risk of it losing the funds. A punctual EMI payment can help you avoid such additional charges.

4. Improved Financial Discipline

Paying EMI on time helps you develop financial discipline, which can help you manage your finances better in the future. This will help you retain your wealth for a longer period of time. Moreover, when you have proven your financial discipline over a period of time, your CIBIL score increases eventually. A cibil score of above 750 can mean easy approvals on personal loans. Plus, you can maintain a clean record for all future borrowing.

5. Access To Future Credit Options

A good credit history and timely EMI payments make you eligible for future loans and credit options. The better your track record, the easier the application process and approvals. You can avail of better credit options and manage your personal finances well if you manage the current loan EMI repayments in a systematic manner.

6. Reduced Financial Stress

When you make your online EMI payment on time, you can avoid the burden of your other expenses. It leads to lower financial stress since at the last moment, no extra pressure of paying multiple bills at once arrives. This way, loans will be less of a burden and more of an external support system for you to achieve your financial dreams like funding a wedding or education.

Strategies for Streamlining Personal Loan EMI Payments

Your ability to make on-time payments on the EMIs associated with your personal loan is directly correlated to how well you prepare. Listed below are some helpful pointers to keep in mind so that you can maintain your payback schedule:

1. Determine the Appropriate EMI

It is essential to select a monthly payment amount for your EMI that is comfortably aligned with both your existing income and your current expenditures. You can estimate the amount of money you will need to pay towards your EMIs with the help of the personal loan EMI calculator offered by SMFG India Credit.

2. Embrace Automation

If you want to be sure that your EMI payments are not missed because of oversights or schedule difficulties, consider signing up for automatic deductions from your account.

3. Establish a Dedicated Account

You should seriously consider opening a new bank account that will be used just for the purpose of managing your EMI payments. This will prevent the payments from becoming mixed up with your other regular costs.

4. Be Ready for Unexpected Circumstances

Create an emergency fund to ensure that your EMI payments won't be affected by unexpected financial crises.

5. Keep a Close Eye on Your Financial Health

It is important to conduct regular reviews of your financial condition to ensure that the EMI payments you are making are not placing an undue burden on your budget.


Paying your EMI on time has multiple benefits, from reducing your fiscal stress to boosting your CIBIL score. If you’re interested in taking up a personal loan from SMFG India Credit, you can be well assured of healthy EMI repayment planning before even taking up the loan. This is possible because of our online EMI calculator that can estimate how much you have an EMI obligation on the basis of your loan amount, interest rate and tenure. With a 100% online application process, you can apply at low interest rates and minimal documents for a personal loan

Amounts can go up to INR 25 lakhs* and repayment tenures are a comfortable 60 months*. Check for eligibility for a personal loan and apply today!

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

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