Personal loans help when you need money for school, home, health, or emergency. But paying back the loan every month (called EMI) can be hard. Don’t worry! In this blog, we’ll show you 5 super simple and smart tips to pay your personal loan faster and save your money.
These tips are written in easy English, so even a 10-year-old can understand them!
💰 1. Pay the Highest EMI You Can
Try to pay the highest EMI (monthly amount) you can afford. The bigger EMI you pay, the faster your loan will end, and the less interest you will have to pay. Always take only as much loan as you truly need, and not more.
Example: If you can pay ₹8,000 per month instead of ₹5,000, your loan will end much earlier!
💵 2. Save Extra Money and Use It
Start saving small amounts of money every month. When you have extra money saved, use it to pay a part of your loan. This helps you pay less interest and finish your loan faster.
Example: Birthday gift money, bonus from job, or tax refund – use them smartly to pay the loan.
⚡ 3. Pay Loan Early (Prepayment Option)
Ask your bank: “Can I pay my full loan early?” Many banks allow you to pay off the loan fully before time. This is called loan prepayment. If you do this, you will save lots of money on interest.
💡 Tip: Not all banks allow this without charges, so always ask before taking the loan.
🔄 4. Switch to a Cheaper Loan (Refinancing)
Interest rates keep changing. If your current loan has high interest, look for a new bank offering lower rates. You can switch your loan to the new bank. This is called loan refinancing.
Result? Lower EMI, less total interest, and faster repayment.
🐷 5. Save Regularly and Avoid Extra Spending
Try not to waste money on things you don’t need. Start saving regularly – even ₹100 a day adds up! After a few months, use your savings to pay part of your loan.
💡 Saving helps you during emergencies too.
✅ Bonus Tip: Check RBI Rules
Did you know? According to the new RBI rules, loan recovery agents cannot call you after 7 PM. So, no more stress or rude calls at night! Always know your rights.
📌 Final Words
These 5 easy steps can help you become EMI-free faster and save your money. But remember, your personal situation is important. If needed, talk to a financial expert.
If you liked this post, share it with your friends and family so they can also benefit. Got questions? Drop them in the comments below!
