What is the best way to budget for repayment of a personal loan?

Budgeting for personal loan repayment requires a disciplined approach for timely payments and financial stability. Start by calculating your monthly EMI using an online EMI calculator. Factor in the principal, interest rate, and tenure. Once you know your EMI include it into your monthly budget as a fixed expense. Prioritise your EMIs to avoid missed payments to avoid any negative impact on your credit score. Review your income and non-negotiable expenses to make sure you have adequate funds each month. If your cash flow is tight, consider reducing discretionary spending or reallocating funds from non-essential categories.

Set up automatic payment schedule from your chosen bank account to avoid missing due dates. Regularly monitor your loan account and overall financial health to ensure you remain on track. If you forsee any difficulty in making payments contact your lender early to discuss options such as restructuring or rescheduling your loan. Planning ahead and maintaining financial discipline will help you manage your loan repayments efficiently without any unwanted stress.

Building an emergency fund alongside your loan repayment can provide a safety net for unexpected expenses, ensuring you never miss an EMI due to sudden financial setbacks. Staying adaptable and proactive in your budgeting approach will help you maintain financial stability throughout your loan tenure.