Struggling To Repay Loans On Time? Check Out These Smart Tips

Struggling To Repay Loans On Time

The disruption to the Indian economy and public health on account of the ongoing Covid-19 pandemic led to huge financial stress for borrowers in India as well as globally. The pandemic and the subsequent lockdowns resulted in scores of Indians losing out a slice of their income or becoming jobless.  

To counter the stress on borrowers, RBI had introduced a two-stage moratorium period from March to August during 2020, which helped borrowers in deferment of their EMIs and  credit card payments over that period. However, now that the moratorium period has ended, many borrowers are facing huge debts. 

Also, with the threat of a second Covid-19 wave looming large over India, borrowers once again find themselves in a tight spot with respect to managing their finances. In such a scenario, borrowers should work out prudent means to repay their loans and get rid of the debt burden and the ensuing debt trap. 

Let us explore some top ways on how to help loan borrowers get back to repay their loans in a timely manner. 

Why is it Important to Repay Loans?

It is a known fact that loans help us to meet our needs for financing our education, buying a home, car, medical expenses, traveling, or even for our business. If financial discipline is maintained, then borrowing helps you to achieve your purpose. 

However, any mismanagement of your borrowings and subsequent repayments will lead to unnecessary financial and mental stress. Repaying all types of loans is a moral, legal and financial obligation. Also, defaulting on loans puts you on the high-risk radar of lenders which not only impacts your credit score but also adversely affects your chances of getting potential loans approved. So, it is very important to repay your loans in a timely manner to maintain your creditworthiness. 

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Tips to Help Borrowers to Repay Loans on Time

The ongoing Covid-19 pandemic may have wreaked havoc on the financial status of most Indians. Still with careful planning and financial discipline, one can get back to repaying their debts in a timely manner as stated below:

  • Make a List of All Your Debts

Taking stock of your debt is the initial step that will help you in organizing your debt and managing them efficiently. It is prudent to make a list of all your debts and related particulars like EMIs, rate of interest, tenures, last payment particulars, and so on. This will help you to prioritize your debt based on various factors like amount, tenure, interest rate, etc.  

  • Settle Higher Value Debts First 

After listing down all your debt and related particulars, work on clearing the costliest debt on a priority basis, as such debts if not repaid on time attract a high rate of interest. This can unnecessarily be a burden on your already strained financial resources. 

  • Automate for Timely Repayments

Going in for automation of your debt repayments will ensure that debts are getting repaid on time without the risk of default. Timely repayments not only reduce your debt over time but also helps you in avoiding penalties, higher interest charges, and adverse impact on your credit score. It also boosts your chances of getting potential debt approved in a hassle-free manner. So, go in for automating your EMI or credit card payments to ensure timely repayment of debt.

  • Opt for Consolidation of Multiple Loans

As far as possible, one should avoid multiple loans at a single time. If still you have multiple loans and are finding it difficult to keep track and make timely payments, then consolidation of such multiple loans into a single loan would be a viable option. This will ensure that you have to pay only one EMI and may even help you to switch a high-interest loan with a low-interest-paying loan. 

  • Create an Emergency Fund

The ongoing Covid-19 pandemic necessitated the need for having liquidity to meet unforeseen calamities. In spite of having a debt, one should still save small amounts to set up an emergency fund. Such a fund will help you in meeting any of your urgent financial needs like medical, loan repayments during any type of crisis like the Covid-19 pandemic.

  • Keep Track of Your Credit Score 

Having a good credit score of 750 and above ensures lenders about your creditworthiness and financial capability to repay potential loans. So, keep track of your credit score on a regular basis to ensure that your credit information is on track and accurate, increasing your chances of getting potential loans approved easily.


To check your latest credit score for free go to  CreditMantri, the trusted credit portal in India. Checking your latest credit score helps you decide the right course of action with respect to your borrowings.

Make use of these tips here and ease back into your loan repayment schedule as quickly as possible.

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