5 Golden Rules for loan repayment

5 Golden Rules of Instant Cash Loan Repayment


The uncertainty of human life is the only certain thing around…everything changes. As someone wise said,” Change is the only constant”. We all know that we need to be prepared for rainy days, however, with the rising costs and uncertain economic trends, savings might be too little to manage these emergencies. The Instant Cash Loan has emerged as the knight in shining armor to save the average person facing a monetary crisis.

Having said that, it is imperative to take a critical look at these instant cash loans before availing them for any kind of financial crisis. These loans are also popularly known as Aadhaar Card Loans as the Aadhaar, along with the PAN, is used as the basis to evaluate an individual’s eligibility. The procedure is extremely simple, and they are an easily accessible source of money, but then it has to be repaid. To avoid any unpleasant situations while repaying the loan it is advised to plan the repayment schedule.

So, consider these points while making repayments towards your Instant Cash Loan:

  • Select a comfortable EMI

The repayment amount should not cause a huge dent in your monthly household budget and so it is crucial to select an affordable EMI scheme. Carefully consider the term of the loan so that the amount is manageable, and you have a relaxed income to debt ratio. While banks prefer those where this ration is at 20-30% many fintech’s like Qbera do consider a ratio of 50% as well. However, it is up to you to select and negotiate a tenure that makes your monthly EMI possible.

  • Shop around for Low-Interest Rate

It is a known factor that a low-interest rate means a low amount paid out as interest. Choose the lowest interest rate possible. Being a possessor of good to excellent CIBIL score can give you an advantage in this area. You can negotiate with the lender to get the lowest possible rate of interest on your instant cash loan application.

  • Outstanding EMI to be avoided

Yes, all eventualities in life cannot be managed and there might arise situations where you find yourself unable to pay the EMI. Consider keeping aside a small fund to tide over any such situation or contact the lender to explain your situation. This has a two-fold impact in maintaining the lenders trust as well as devising a comfortable repayment plan without the additional burden of penalties and late payment charges. The penalties imposed also have  a negative impact on your credit score.

  • Debt payment the foremost concern

Any kind of extra amount that you receive, be it in the form of a bonus or an increment in salary, utilize that to effectively repay the debt. Prepayment gives you peace of mind and you also save money that you would have paid out as interest. Part-payment of the loan amount is also encouraged. There is, however, a chance of the lender charging prepayment or part-payment charges. Carefully consider these while availing the personal loan.

  • Step-up/Step-Down Repayment option

You can choose to step-up the EMI payment while reducing the tenure so that the loan gets repaid quickly, alternatively, you can also choose the step-down plan wherein you bring down the EMI while increasing the tenure. A step -up plan is advisable to those who have confidence that there will be an increase in income that can be diverted towards repayment of a loan. A step-down plan will be better for someone looking to make the monthly budget more comfortable.


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