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Tata Capital > Blog > Personal Use Loan > What is My Payment Method for a Personal Loan?

Personal Use Loan

What is My Payment Method for a Personal Loan?

What is My Payment Method for a Personal Loan?

Quite often you may require financial support to fulfill your dreams and aspirations. You may also need cash to meet financial obligations such as consolidating an existing debt, paying medical expenses, and meeting wedding costs, among others. Though borrowing from your social circle of family and friends seems like a viable option, the chances of a strained relationship increase in case of failure to repay the loan.

One of the best financing options is borrowing a personal loan from a bank or a Non-Banking Financial Company (NBFC). The good news is that lenders do not question the intent of borrowing such a loan. You may, therefore, use it for any purpose. You may either visit your local branch or apply for a loan through the Internet. Once the application has been sanctioned, the amount is disbursed to your account. You then need to make timely repayments of the loan over the pre-determined tenure.

Lenders nowadays offer convenient options to pay your Equated Monthly Installments (EMIs). Banks and NBFCs offer digitized methods to repay your loan. Making EMI payment through the Internet offers a great degree of convenience.

Following are three convenient methods that you may use to repay your loan.

1. Auto Debit Facility

The auto debit facility is one of the best methods of scheduling your payment. It saves you the effort of having to remember your due date. Besides, you need not issue a cheque every month towards payment of your dues. All you have to do is fill a form and enable your lender to activate the bank mandate. Your account will then be debited every month towards your EMI payment.

2. Post Dated Cheque Facility

Alternatively, you may provide your lender with Post Dated Cheques (PDC). The amount on the cheque will be drawn from the account on the date written on it. This amount will then be used towards the repayment of your loan. It is, however, important to understand that PDC facility generally attracts a small fee.

3. Pay Online Facility

Numerous lenders provide a convenient option of paying online through the lender’s website. In order to pay your overdue Equated Monthly Installments, you have to simply enter your loan account number or the contract number. The website displays the outstanding amount payable. You may enter the amount you wish to pay along with other details. The site will direct you to its Bill Desk for making a payment. You may then go ahead and pay your EMI through Internet banking or any other supported payment system such as a debit card.

Borrowing a loan is the best solution to a cash crunch. It is imperative to keep numerous factors in mind while borrowing a loan such as borrowing limit, tenure, repayment plans, and rate of interest, among others. While seeking finance, you may use a personal loan EMI calculator

to determine your monthly repayment amount. You may then go ahead and use any of the convenient payment methods to clear your EMIs easily.