Repay your loan with these simple steps

Make your loan repayments with these simple steps.
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Steps to repay your loan
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3 min
14-June-2024

What is Personal Loan Repayment?

Personal loan repayment refers to the process of paying back the borrowed amount, along with interest, in regular installments over a specified period. The repayment schedule, known as Equated Monthly Installments (EMIs), is predetermined by the lender and borrower at the loan's inception. EMIs consist of both principal and interest components, ensuring the loan is fully repaid by the end of the tenure. Repayment can be made through various methods such as bank transfers, auto-debit, or cheques. Timely repayment of personal loans is crucial to avoid late fees, penalties, and negative impacts on your credit score. It also ensures a good credit history, making it easier to obtain future loans.

How to pay a personal loan EMI?

Paying a personal loan EMI involves several straightforward steps:

  1. Auto-Debit Setup: Arrange automatic deductions from your bank account.
  2. Online banking: Use internet banking to transfer the EMI amount.
  3. Mobile banking: Pay via your bank’s mobile app.
  4. Cheque payment: Issue post-dated cheques for EMI payments.
  5. Bank transfers: Use NEFT/RTGS/IMPS to transfer the EMI amount to the lender.

Ensure timely payments to avoid penalties and maintain a good credit score.

Other ways for personal loan monthly payment

Besides the standard payment methods, there are other ways to manage personal loan monthly payments:

  1. Standing instructions: Authorise your bank to debit the EMI amount automatically.
  2. Electronic Clearing Service (ECS): Set up ECS for automatic EMI payments from your account.
  3. Mobile wallets: Use mobile wallet apps to pay your EMIs.
  4. Direct debit from salary: Arrange for direct EMI deductions from your salary account.

These options offer flexibility and convenience, ensuring your payments are always on time.

Documents required for personal loan repayment

To facilitate personal loan repayment, the following documents may be required:

  1. Loan Account Number: Your unique loan account details.
  2. Identity proof: Aadhaar card, PAN card, or passport.
  3. Overdue notice: Statement showing the overdue amount.
  4. Payment receipt: Proof of the last EMI payment made.
  5. Bank statements: Recent statements to verify account balance.
  6. Written request: If needed, a formal application for repayment adjustments or waivers.

Having these documents ready ensures a smooth repayment process and helps avoid any delays.

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

What is the normal repayment period of a personal loan?

The normal repayment period of a personal loan typically ranges from 12 to 60 months. This duration can vary based on factors such as the loan amount, interest rate, and the borrower's creditworthiness. Lenders like Bajaj Finserv offer flexible tenures of up to 8 years, allowing borrowers to choose a repayment period that suits their financial situation. A longer tenure results in smaller EMIs but higher overall interest, whereas a shorter tenure increases EMIs but reduces the total interest paid. It’s essential to select a repayment period that balances affordability with the goal of minimizing interest costs.

Can I repay personal loan immediately?

Yes, you can repay a personal loan immediately through fast, uncomplicated, and secure online payment methods. Platforms like Paytm offer convenient options to make instant loan repayments at any time of the day. Early repayment or prepayment can help reduce the interest burden, but it's important to check with your lender regarding any prepayment penalties or charges that might apply. Immediate repayment can significantly decrease the overall cost of the loan and improve your credit score by demonstrating financial responsibility.

Can we pay personal loan online?

Yes, personal loans can be paid online through various methods. Monthly repayments, known as EMIs, can be managed via internet banking, mobile banking apps, and electronic clearing services (ECS). Online payment platforms also highlight that borrowers can use digital wallets and bank transfers to make these payments conveniently. This online accessibility ensures that repayments are timely, reducing the risk of late payment charges and maintaining a good credit score.

What is the monthly personal repayment amount?

The monthly personal loan repayment amount, or EMI, is the sum that a borrower must pay each month to repay the loan principal and interest within the specified time. This amount is calculated based on the loan amount, interest rate, and repayment tenure. Calculating the EMI accurately helps borrowers plan their finances better, ensuring they can meet their repayment obligations without financial strain. Online EMI calculators can assist in determining the exact monthly repayment amount.

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