Deduction against salary

Various repayment methods

There are several repayment methods that are available for you when you have to pay back the personal loan. You can select one of the routes available depending upon your convenience and the facility offered by the bank.

Regular payment

In most cases, the personal loan has to be repaid in equal monthly instalments (EMIs), so it makes more sense for you to link this repayment with some receipt that comes in on a regular basis.

Salary receipt

There are a lot of salaried people who have taken a personal loan. When they have to repay this loan, there is an additional option present for them.

Deduction from salary

Salaried people can give an instruction to their employer and the bank that the deduction of the amount for the loan is made against the salary received by them each month. This will ensure that only the net amount comes into the bank account for you.

Convenience

While this is a very convenient way of making payment there is also the question of whether this route is open for selection. At the same time, the effect of this route on the overall financial position of the borrower has to be also considered because otherwise there might be some cash crunch at critical junctures.