Points To Consider While Choosing An EMI Loan Repayment Plan

The internet is now filled with online loan apps like Kreditbee, Nira, Branch, and more. Thanks to these apps, personal loans have become more and more accessible to the general public. No more standing in long queues or waiting for days to get the application approved. The online medium has made it possible to acquire a loan from the comfort of your home without having to go through the hassle of visiting the bank physically. 

However, you must borrow responsibly and should make it a point to pay all the EMIs on time. One of the sure-fire ways to pay EMI is from loan apps like Navi to select the ideal loan EMI tenure. But how do you do that? Let us find out in this article. 

Loan Amount

The first thing to consider is the total amount you need to borrow. Higher loan amounts mean higher EMIs. Your income and ability to comfortably sustain the EMI payments should guide you in deciding the loan amount to take. Stretching beyond your means can make pocketly and other repayments difficult.

Loan Tenure

Another key factor is the tenure or duration of the loan from fibe or other apps. Shorter tenures mean higher monthly EMIs but lower total interest paid. Longer tenures have lower EMIs but much more total interest over the period. Choose a tenure based on your repayment capability and preferences. Shorter may be better if you can afford the higher EMIs.

Interest Rate

The lender’s interest rate directly impacts your EMI amount and total interest outgo. Do thorough research and compare interest rates across different banks and NBFCs before finalizing. Even a small difference in rates can translate into significant savings over the loan tenure.

Fixed or Floating Interest

For loans like home loans, you can choose fixed or floating interest rates. Fixed rates remain constant but are typically higher. Floating rates are lower initially but can increase or decrease based on market movements. Your risk appetite, income stability, and outlook on interest rates should guide this decision.  

Additional Charges

Apart from principal and interest, loans often involve other charges like processing fees, prepayment penalties or charges for late payments. Factor these into your cost calculations from the start. Going with lenders having lower or no prepayment penalties can help save money if you wish to foreclose early.

EMI Calculators

Most banks and NBFCs provide online EMI calculators, which show the estimated EMI amount for different loan tenures and interest rate scenarios. These calculators allow you to easily compare the EMI implications of various options before deciding.

Repayment Schedule

Understand the repayment schedule clearly—whether EMIs are calculated based on reducing balance or flat interest rates. Also, check if the interest is calculated annually, monthly, or daily. This impacts how much of each EMI initially goes towards principal repayment.

Future Plans

Your medium—to long-term financial goals and expectations should be a key consideration in EMI planning. If you expect any big expenses, like a child’s education or wedding, during the loan tenure, build that into your repayment capability assessment.


Consider your income, expenses, and future needs carefully before taking on an EMI from a loan app like money view. An affordable, well-planned EMI goes a long way toward ensuring a smooth, stress-free loan experience. Take your time to consider all factors and make an informed decision on the repayment option that suits you best.

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