Top 5 Benefits of EMI

Every time you avail of a loan, it has to be repaid. The same applies to a personal loan or a collateral-free loan. Repayment is done through EMI. But what does EMI stand for? EMI stands for equated monthly instalments, which are paid throughout the personal loan tenure.

While there are multiple benefits of personal loan, are they applicable to EMIs as well? Are there any benefits of EMI repayments of your loan? 

  • Affordability: Loans, secured as well as collateral-free, can help fulfill a dream. It gives you the affordability and the freedom to buy anything you desire. Instead of spending a huge amount of money in one go, you can repay the lender in parts over a period of time.
  • Flexibility: Another EMI benefit is the flexibility it offers. You can choose to have a standard repayment plan where you pay a consistent EMI amount throughout the personal loan tenure or choose to have a Flexi plan where you can increase your EMI if you have extra funds in hand. 
  • No brokerage: Did you know that you do not need to pay any brokerage to middlemen for your loan EMI? Since it is a direct transaction between you and the lender, you are free of paying any additional costs to a mediator.
  • Monthly budget/finance Plan: You can use a personal loan EMI calculator before the loan is disbursed to know how much your monthly outflow will be. This will help you plan a more precise monthly budget for your spending.

Benefits of paying EMI on time

  • Improves credit score: Every time you pay your loan EMI on time, you get a point on your credit score and rations. Timely payment of your EMI amount means that you have high creditworthiness and lenders are not hesitant to offer you instant loans in the future. 
  • Save on penalty: A missed EMI payment attracts a penalty. This means that you’ve not only created a dent in your credit ratings, but you’ve also end up paying extra money in the form of a penalty charge levied by the lender. 
  • Access to top-up loans: If there comes a time when you need additional money over and above the existing loan amount, lenders will let you avail a top-up loan. This will be an addition to your existing loan and not a separate loan. 
  • Get loans at lower interest rates: Timely loan repayments indicate that you are a trustworthy borrower. This is what lenders look for in a client. They also tend to impart special discounts including lower interest rates on personal loans for the salaried.


  • Good relationship with lender: Relationships are built on trust. If your lender knows that you will pay your EMI rate on time, it shows that they trust you. It builds a good borrower-lender rapport, which in turn, can help you avail instant loans of a higher amount at a lower interest rate. 

Before availing any instant personal loan, it is good to know the loan EMI rate. The best way to do so is by using a personal loan EMI calculator. It makes calculating EMIs easy and quick. If at any time you feel that the EMI is too high or too low, you can change the variables to arrive at a figure that will suit you. 

If you need an EMI calculator, you can check Finnable’s website or download their personal loan app. You can change the loan amount or the personal loan tenure and choose a tentative personal loan interest rate on your loan.  

That’s not all. The online loan app also lets you use the personal loan eligibility calculator to ascertain whether you are eligible for a personal loan or not. You can apply for a home renovation loan, wedding loan, vehicle loan, etc. all via the instant personal loan app.

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