Do EMIs Make Personal Loans More Appealing?

It has become very easy to get a personal loan. Having to visit a bank to apply for a personal loan is slowly being replaced with securing a personal loan on a mobile app. Not only is the application process streamlined and easy to follow,  so is the repayment process. With multiple repayment options made available on personal loan platforms, people are more open to the idea of availing of a loan. Especially for young working professionals who will sometimes need to rely on loans to take care of immediate expenses.

What is a Personal Loan?

A personal loan is an unsecured loan, meaning there is no need to pledge any assets in order to secure the loan. Such a loan can be utilized for various purposes – paying off tuition or education fees, for travel purposes, funding a wedding, purchasing a car or a two-wheeler, etc. Generally, such loans are secured through personal loan apps where a one-time payment is made to borrowers. On CASHe, you can borrow anywhere from Rs. 1,000 to Rs. 3,00,000, depending on various eligibility criteria. For repayment, this loan amount (with interest) is broken into equal monthly installments which then need to be paid off every month. This is known as Equated Monthly Installments (EMIs). 

Understanding EMIs

An equated monthly installment is a fixed payment amount that needs to be paid by the borrower to the lender (in this case, CASHe) on a specified date every calendar month. An EMI constitutes two components – principal and interest. Interest is charged on the principal amount (original loan amount) and this total amount is then broken down into equal payments that are due every month to CASHe over a period of time. A longer tenure would mean lower EMIs but a higher interest rate is charged. One of the primary reasons why people choose to pay in EMIs is because the payment is spread across a period of time so you do not have to worry about making a hefty payment in one go. 

Paying Off Personal Loans in EMIs

When you get a personal loan, a point of worry is how to repay that loan amount. One of the primary reasons to opt for EMI is that the repayment is broken down into installments. This repayment plan depends on the loan amount you have applied for and the interest and tenure will be determined accordingly. This makes it easier for the borrower to pay back the personal loan amount and have better control over the finances without burning a hole in your pocket. Paying off your EMIs on time will also have a positive impact on your credit score. Such factors make EMIs a very appealing option and the reason why people opt for them to repay their loan(s) . It is also important to keep in mind that while the repayment is being broken into installments, you should only borrow what is absolutely necessary. 


Equated monthly installments are a great way to repay loans. It also helps when the lender (any financial institution) offers flexible repayment plans that makes it even more convenient for people to opt for it. When the time comes for you to get a personal loan, do your research and go for a lender that offers suitable repayment plans.