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How can I repay my personal loan?

Curious about Personal Loans

How can I repay my personal loan?

Repaying a personal loan is typically done through Equated Monthly Installments (EMIs), which are fixed monthly payments that include both the principal amount and interest. Here's how you can repay your personal loan:

1. AutoDebit from Bank Account:
Most lenders prefer and offer the option of setting up an autodebit arrangement. You provide postdated checks or authorize the lender to deduct the EMI amount directly from your bank account on a specified date each month.

2. Standing Instruction (SI):
You can set up a standing instruction with your bank to transfer the EMI amount from your savings or current account to the lender's account on the due date each month.

3. Online Payments:
Many lenders provide online payment portals or mobile apps that allow you to make EMI payments using net banking, debit cards, or other electronic payment methods.

4. Cheque Payments:
If you prefer to make physical payments, you can provide postdated checks to the lender for each EMI, ensuring that the checks are deposited on or before the due date.

5. Cash Payments:
Some lenders accept cash payments at their branches, but this option is less common and may be subject to additional charges.

6. NEFT/RTGS Transfer:
You can use the National Electronic Funds Transfer (NEFT) or RealTime Gross Settlement (RTGS) system to transfer the EMI amount from your bank account to the lender's account. This method is suitable if you prefer online banking.

7. Mobile Wallets and UPI Payments:
Depending on the lender, you may have the option to make EMI payments through mobile wallet apps or the Unified Payments Interface (UPI).

8. Pay Through Lender's Website/App:
Many lenders provide their customers with online access to make EMI payments through their official websites or mobile apps.

9. ThirdParty Payment Services:
Some borrowers choose to use thirdparty payment services or apps to make loan payments. Ensure that the service is secure and reputable.

It's essential to ensure that you make EMI payments on or before the due date to avoid late payment charges and negatively impacting your credit score. Additionally, consider setting up reminders or alerts to notify you of upcoming EMI due dates to avoid missing payments.

Before choosing a repayment method, discuss the options available with your lender and select the one that aligns with your preferences and financial management practices. Keep records of all loan repayments, including payment receipts and bank statements, for your reference and as proof of payment.

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