Loan Repayment

Enjoy Fast and Secure Loan Repayments with Shriram Finance 

At Shriram Finance, we understand the importance of managing your loan repayments, easily and efficiently. That’s why we offer a seamless, fast, and secure platform that allows you to handle all aspects of your loan repayment in one place. With just a few clicks, you can make your EMI payments online. Additionally, you will be able to keep track of your loan repayment schedule, and ensure timely repayments. 

What is Loan Repayment? 

Loan repayment refers to the process of paying back borrowed funds over a specified period. It involves regular payments of principal and interest until the loan is fully repaid. 

Loan repayment helps you meet your financial commitments and there are several ways to simplify it. Online EMI payments make it easy for borrowers to stay on top of their financial obligations. It includes regular EMI payments and promptly addressing overdue EMI payments. 

Managing your loan repayment becomes easy when you pay your EMI online. Most financial institutions provide borrowers with a clear loan repayment schedule, allowing them to plan and track their progress. To ensure accurate and up-to-date records, keep an eye on your repayment credit in your bank statement. 

There are often options to quickly pay your EMI online if you missed the payment by just one day. Some borrowers may opt for early loan repayment to reduce interest costs. 

There are various repayment options available to manage your finances. Your EMI monthly instalment and EMI amount can be customised to meet your budget and financial goals.  

How to Pay Loans Online at Shriram Finance? 

Shriram Finance's user-friendly online portal makes your loan repayments easy whether you are at home or on the go. 

1. Visit the Shriram Finance website  
2. Navigate to the main menu and click on "Payments," then opt for "BBPS."
3. Choose the "Financial Services & Tax" category and select "Loan Repayment."
4. Enter your Loan number and click on 'PROCEED' 
5. Verify if the mobile number is correct and click on CONTINUE 
6. Enter the 6-digit OTP and click on VERIFY & CONTINUE 
7. Review your details and click on PAY 
8. Choose a preferred payment method, enter the required details, and complete the payment 

Most Common Types of Loan Repayments 

The most common types of loan repayments include home loans, car loans, personal loans, gold loans, and credit card repayments. 

What is an EMI? 

EMI stands for Equated Monthly Instalment. It is a fixed amount that borrowers need to repay each month towards their loan, including both principal and interest components. 

Different Types of EMIs for Credit Repayment 

There are various types of EMIs available for credit repayment, including fixed-rate EMIs, floating-rate EMIs, step-up EMIs, and bullet EMIs. 

Types of Interest Rates on Loans 

Interest rates on loans can be fixed or floating. Fixed interest rates remain constant throughout the loan tenure, while floating rates may vary based on market conditions. 

What is Reducing/Diminishing Rate of Interest? 

Reducing or diminishing the rate of interest refers to a method where interest is charged on the outstanding loan balance. As the principal reduces, the interest component decreases over time. 

Loan Repayment Options Available for Home Loans 

You can choose a loan tenure that suits your financial circumstances: 

Regular/Fixed EMI Repayment: A fixed EMI is to paid each month, with the option for prepayment and overdraft facilities. Interest rates may be fixed or floating. 

EMI Moratorium: Offers a grace period where only nominal interest payments are made, typically up to 5 years before regular EMIs begin. 

Step-Down Repayment: Gradually decreases the EMI as the outstanding loan balance reduces, allowing for higher initial payments. 

Step-Up Repayment: Starts with lower EMIs which gradually increase over the loan tenure, ideal for those expecting increased income in the future. 

Pre-EMI: Used for under-construction properties, with interest payments based on the disbursed amount, resulting in lower initial EMIs. 

Loan Repayment Options Available for Personal Loans 

Personal loans come with versatile repayment plans, allowing you to select a short or long-term repayment period based on your needs: 

Fixed-Term Loans: Predetermined loan term with consistent EMIs. 

Interest Calculation: The calculation of interest can be flat or diminishing. 

Monthly EMIs: Can be prepaid monthly via methods like post-dated cheques, ECS, direct debit, salary deductions, or direct payments. 

Repayment Method Choice: Borrowers can choose their repayment method at loan disbursement, with the option to change it later by submitting the necessary forms. 

Fixed Interest Rate: Ensures constant EMIs. Most banks allow prepayment or pre-closure, but part-prepayment may be restricted. 

Loan Repayment Options Available for Two-Wheeler Loans 

Monthly instalments are available on two-wheeler loans. Typically, these instalments have competitive interest rates, making repayments easier. Borrowers can comfortably repay their loans over time with this approach. 

Loan Repayment Options Available for Business Loans 

Borrowers of business loans can opt for EMI options to repay their loans, involving a structured sequence of monthly payments. Each EMI instalment includes both principal and interest. Each fixed instalment is paid on a predetermined date each month, ensuring gradual debt repayment. 

Small business loans are typically repaid using a standard repayment plan, which has a fixed payment amount. This amount is calculated based on factors such as the total loan amount, loan duration, and interest rate. Businesses can use this method to simplify loan management and budgeting. 

Loan Repayment Options Available for Gold Loans 

Gold loans are usually fast-acting financial solutions. The principal and interest need to be settled in one payment at the end of the loan. During the loan tenure, periodic contributions to the loan account are optional, but they primarily offset interest. With this approach, the monthly financial burden of loan repayments is significantly reduced. 

Download Shriram One App Now 

Experience the ultimate convenience of managing all your bills, recharges, and bookings on the go. Download the Shriram One app now either from the Play Store or App Store, and simplify your life with hassle-free payments at your fingertips.