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Personal Loans’ Repayment Option





Loans are a huge financial help for individuals seeking funds. Such finance may be used for multiple purposes such as an international holiday, medical expenses, wedding expenditure, or any other emergency purpose. Additionally, there is no collateral required to be kept against such consumer loans. Hence, borrowers do not lose ownership of any asset in case of a loan default.

Given the numerous benefits, personal loans have to offer, such loans are becoming widely popular. In order to cater to the rising demand for loans, banks, and lending institutions are offering such finance at attractive rates. Besides, lenders are also increasing their customer base and attracting potential loan seekers by offering flexible repayment schemes. One such lending institution, Tata Capital, offers flexible Equated Monthly Installment (EMI) plans wherein borrowers may customize their EMI amount based on their cash flow.

Following are the various flexible repayment options available for Tata Capital personal loan borrowers.

  1. Step Up Flexi EMI plan

According to this repayment option, borrowers may start initial EMIs at a low amount. With an increase in annual earning, the EMI amount may also increase. Such a scheme allows borrowers to make larger repayments with a corresponding increase in their cash flow. This reduces the financial burden of the borrowers and allows them to make payments as per their convenience.

  1. Step Down Flexi EMI plan

As the name suggests, the Step Down plan permits borrowers to ‘step down’ on their EMI amount. This indicates that EMIs are very high at the beginning of the loan tenure and decrease substantially over the years. This option is suitable for individuals who plan to retire and wish to build an asset quickly. The Step Down plan helps individuals to save up on finance costs.

  1. Bullet Flexi EMI plan

The Bullet Flexi plan allows borrowers to prepay the loan amount in parts at periodic intervals. Prepaying a loan reduces their principal amount, which in turn reduces the regular EMIs. Also, this scheme does not require any charges to be paid on prepayments. Those individuals who expect cash inflow due to the sale of an asset, or are expecting a salary hike or a bonus, may opt for such a flexi plan.

There are numerous modes to repay a Tata Capital personal loan. Individuals may either opt for an Electronic Clearance System (ECS) wherein the EMI amount gets deducted from the nominated account. Under this system, the borrower instructs the banker to automatically deduct the amount from the linked account. Alternatively, borrowers may also pay through post-dated cheques in favor of Tata Capital Financial Services Limited. In such cases, the borrower is expected to have sufficient funds in the account on the date the cheque is presented.

Such multiple repayment modes provide additional benefits to customers. Borrowers may, therefore, avail of such benefits and customize their EMI amount based on their convenience and cash flow.

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