Personal loans make your dreams accessible — but only if you manage your EMIs (Equated Monthly Instalments) wisely. A few careless missteps, and you’re looking at late fees, penalties, and credit damage.
Let’s break down the most common EMI mistakes people make and how Vizzve Finance helps you avoid them.
Top EMI Mistakes Borrowers Make
1. Missing or Skipping EMIs
One late EMI can drop your credit score by 50+ points.
People assume missing one EMI won’t hurt. But every missed payment gets reported to credit bureaus like CIBIL, making you appear financially unreliable.
Fix: Enable auto-debit, and ensure your account is funded before the due date.
2. Paying Only Partial EMIs
Some borrowers pay just ₹1,000 on a ₹5,000 EMI thinking it's better than nothing. But lenders still treat it as missed.
Fix: Pay in full. If short on funds, contact your lender for a restructuring plan.
3. Not Tracking Due Dates
Forgetting EMI dates = paying late fees + interest penalties.
Fix: Use EMI calendars, SMS reminders, or Vizzve’s dashboard alerts to stay on track.
4. Using Credit Cards to Pay EMIs
Unless it’s an emergency, using a credit card to pay EMI means you're borrowing to repay another loan. This creates a debt trap.
Fix: Budget monthly EMI outflows, or opt for smaller loan tenures.
5. Ignoring EMI Bounce Charges
If your EMI auto-debit fails, banks charge ₹300–₹500 per bounce, plus GST. Multiple bounces hurt your bank score.
Fix: Maintain a buffer balance every EMI cycle.
6. Choosing the Wrong EMI Plan
Some pick the lowest EMI without realizing it means a longer tenure and more interest paid overall.
Fix: Use Vizzve’s EMI calculator to balance affordability and tenure.
7. Not Checking the Amortization Schedule
You may think your EMI equally reduces principal + interest. It doesn’t. Early EMIs mostly go toward interest.
Fix: Ask your lender for a full amortization chart to understand repayment structure.
Vizzve Finance Makes EMI Management Easy
With Vizzve, you get:
Timely EMI alerts
Auto-debit options
Transparent loan tracker
Restructuring support if you’re in financial stress
We help you repay smartly, without stress.
Pro Tips to Avoid EMI Mistakes
Set a separate account just for EMIs
Don’t borrow more than 40% of your monthly income
Increase EMI amount after a salary hike
Prepay if possible, without foreclosure charges
FAQs
Q1. Can a single missed EMI affect my CIBIL score?
Yes, it can impact your score for up to 24 months.
Q2. What happens if I miss 3 EMIs in a row?
Your account may be flagged as NPA (Non-Performing Asset), and legal notices may follow.
Q3. How can Vizzve help if I miss an EMI?
We offer grace periods and help restructure your repayment if you're eligible.
Q4. Is partial EMI payment better than nothing?
Not really. It still counts as missed. Always inform your lender in advance.
Final Word
EMIs aren't just payments — they’re credit behavior indicators.
The better you manage them, the stronger your financial profile.
Published on : 23rd July
Published by : SMITA
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