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

Published on Aug 10, 2023Updated on Oct 10, 2023

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

EMI, or Equated Monthly Instalment, 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.

How To Plan EMI Payments Effectively


Before taking a loan, calculate your monthly budget and affordability. Ensure that the EMI payments are within your budget.

Negotiate Terms

Negotiate the loan terms with the lender, such as personal loan interest rates, repayment tenure, and prepayment options.

Automatic Payments

Set up automatic payments through your bank account to avoid missing or delaying online EMI payments.


Set up reminders on your phone or calendar to ensure that you remember the EMI payment due dates.

Emergency Fund

With an emergency fund to cover unexpected expenses, you can ensure that you don't miss EMI payments.

Prepayment Options

Consider prepayment options to reduce the loan burden and save on interest charges.

Here are 4 tips for managing your EMI payment:

  1. Prioritise EMI payments in your monthly budget and avoid unnecessary expenses.
  2. Reduce other expenses if needed to ensure timely EMI payments.
  3. Seek professional financial advice if you are facing difficulty in managing your finances.
  4. Avoid taking multiple loans simultaneously to ensure that you do not overburden yourself with debt.


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!

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*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.