Sometimes it is right to take a loan to achieve your goals no matter if it’s for starting a new business, buying something new, or handling unexpected expenses. But once you take a loan from BigMudra, we will help you manage your loan well. The most important thing is to pay your EMIs on time.
If you miss EMIs, it can affect your credit score and even lead to extra charges. But don’t worry, we are here to help you stay on track! In this blog, we will share some simple and useful tips on how to manage your BigMudra loan smartly and repay your EMIs on time.
Know Your Loan Details Well
Before anything else, make sure you clearly understand your loan. You should know:
- The EMI amount
- The due date
- The total loan duration
- Interest rate
- Penalty for late payments
When you know these details, it becomes easier to plan your monthly budget and avoid surprises.
Make a Simple Monthly Budget
One of the best ways to manage your monthly EMIs is by making a monthly budget plan. Don’t worry, the plan doesn’t need to be complicated. Here is a simple way, you can do it.
- Step 1: Write down your monthly income (salary, business income, etc.).
- Step 2: List all your monthly expenses (like rent, groceries, electricity, phone bills).
- Step 3: Add your BigMudra EMI to this list.
- Step 4: Check how much money is left after all these expenses.
Making a simple monthly budget plan helps you understand how much you are spending and how much you are saving. You can also see if your spending is getting too much on non-essential items like eating out, shopping, or entertainment.
Set Up Auto-Debit for EMIs
Setting up auto-debit is one of the easiest ways to make sure you never miss your EMI repayment. It automatically deducts the EMI amount from your bank account on the due date.
Why auto-debit helps:
- No need to remember the date every month
- No chance of forgetting or paying late
- Peace of mind
Make sure that your bank account has enough account balance before the EMI date so that it won’t fail.
Keep a Reminder or Alert
If you are not comfortable with auto-debit, then setting reminders is a good option. You can:
- Set a reminder on your phone or calendar
- Use a mobile app for managing loans or expenses
- Ask a family member to remind you
Try to clear your EMI a few days before the due date to avoid any last-minute problems such as internet issues or bank delays.
Maintain a Separate Bank Account for EMI
If this thing is possible for you then open a separate bank account just for EMI payments and saving related to loans. On every due date, transfer a fixed amount into this account after receiving your salary or other income.
This helps you stay disciplined. You won’t accidentally spend the EMI money on other things.
Cut Down Unnecessary Expenses
You have to make sure that while enjoying life you have to maintain and prioritize. Make a simple monthly budget plan and look for your monthly expenses and see where you can cut down. For example:
- Reduce ordering food online
- Limit online shopping
- Cancel unused subscriptions (like OTT platforms)
- Use public transport or carpool when possible
Small changes can make a big difference. The money saved can go towards your EMIs or even your emergency fund.
Build an Emergency Fund
Life is uncertain, you might face situations like job loss, medical emergencies, or urgent home repairs. In tough times, emergency funds help you handle such times without missing your EMI. Try to save at least 3 to 6 months EMI amount in a savings account so that it is easy to access when needed.
Talk to BigMudra If You Face Trouble
If you ever face any situation where you are having trouble paying your EMI on time, don’t panic and don’t hide it either.
Instead, reach out to the BigMudra Loan support team and explain your situation honestly. In many cases, the lender might offer solutions to support you like:
- Changing the due date
- Offering a short-term break (known as a moratorium)
- Restructuring the loan
The key is to communicate early, before you start missing EMIs.
Understand the Impact of Missing EMIs
It’s very important to know what happens if you miss your EMI:
- You may be charged a late fee or penalty
- Your credit score will go down
- Future loans may become harder to get
- You may get calls or reminders from the lender
That’s why even if you are going through a tough time, it’s better to pay something rather than missing the full EMI.
Track Your Credit Score
Your credit score is like your financial report card. If you pay your EMIs on time, your score will go up. This will help you in future if you want to:
- Take a home loan
- Get a credit card
- Apply for another personal loan
You can check your credit score online for free once a year. Some apps also show your credit score regularly.
Conclusion
Managing your BigMudra loan repayments doesn’t have to be stressful. With some planning, good habits, and the right systems in place, you can ensure timely payments while building a solid financial foundation for your future. Your future self will thank you for the discipline you show today!
Read more such insightful articles at Bigmudra Blogs.
