Benefits of advance EMI payment

Make the smart choice and pay your EMIs before-time with the Insta EMI Card.
Benefits of advance EMI payment
2 min read
24 July 2023

Convenient access to credit holds significant empowerment. The capacity to secure funds swiftly for immediate needs, followed by gradual repayment in manageable instalments, lies at the core of fostering financial inclusivity. Equated Monthly Instalments (EMIs) have garnered favour, offering the ability to disperse loan repayment over an extended duration, accommodating substantial financial obligations within a modest monthly budget. While standard EMI payments deliver convenience, there is an alternative that brings added benefits: upfront EMI payments. This approach presents an even more advantageous avenue for borrowers.

What is a regular EMI payment?

A regular EMI payment is the standard method of repayment, where you pay equal instalments every month over a specified tenure, consisting of both the principal amount and interest. This mode of payment is widely used for various types of loans and EMI purchases, making it a common choice for those seeking to manage their expenses more efficiently.

What is an advance EMI payment?

An advance EMI payment, as the name suggests, involves making EMI payments in advance. In this payment mode, you pay a lump sum amount, equivalent to a few EMIs, together. This bulk payment is made in advance, before the completion of the repayment tenure. This lets you enjoy the benefit of reduced EMIs over the loan tenure or a reduction in the loan tenure itself.

Difference between advance EMIs and arrear EMIs


Advance EMI

Arrear EMI

Payment timing

Paid at the beginning of the month

Paid at the end of the month

Interest calculation

Calculated on the outstanding loan amount at the beginning of the month

Calculated on the remaining principal amount at the end of the month

Initial payment

Higher initial payment

Lower initial payment

Interest savings

Lower interest over the loan tenure

Slightly higher interest over the loan tenure


Suitable for borrowers with surplus funds at the beginning of the loan

Suitable for borrowers with regular income and monthly cash flow

Total interest paid

Generally lower

Generally higher


Suppose the loan disbursal is on January 1, 2023. The first EMI is paid on January 1, 2023.

Suppose the loan disbursal is on January 1, 2023. The first EMI is paid on February 1, 2023.

Benefits of making an advance EMI payment

  1. Improved loan eligibility: Choosing advance EMI payment can enhance your loan eligibility. Since the EMI burden is reduced, lenders may be more willing to approve a higher loan amount based on your repayment capacity.
  2. Lower monthly instalments: The primary advantage of paying EMIs in advance is that it leads to lower EMI amount throughout the loan tenure. This reduction in monthly instalments helps you manage your finances more effectively, especially during periods of financial strain.
  3. Better cash flow management: Advance EMI payment eases your cash flow burden as you pay a significant amount upfront. This helps in better cash flow management during the loan tenure, providing greater financial stability.
  4. Reduction in loan tenure: With lower EMIs to pay, you now have the option to reduce the loan tenure if desired. This means that the loan can be repaid faster, saving on interest costs and achieving financial freedom sooner.

Insta EMI Card features & benefits

How to avail of EMI payment in advance?

Making an advance EMI payment with the Bajaj Finserv Insta EMI Card is a straightforward process. You can pay your EMIs in advance through our customer portal - My Account by following these simple steps:

  1. Go to our customer portal by clicking on ‘SIGN-IN' button on this page
  2. Enter your mobile number, date of birth and verify your details with an OTP
  3. Click on the loan account for which you want to make an advance payment
  4. Choose the 'ADVANCE EMI' option from the list
  5. Enter the required details and proceed to pay


In conclusion, paying your instalments in advance offers several benefits. It helps you build good money habits and save money in the long run. By opting for early Equated Monthly Instalments (EMIs), you can reduce the amount you pay in interest and may even qualify for discounts from financial institutions. Paying EMIs ahead of schedule also boosts your creditworthiness, opening more financial opportunities for you. Plus, it brings peace of mind, knowing you have taken care of your financial commitments early. As technology makes financial transactions easier, choosing to pay your EMIs in advance is a smart and practical move. It gives you the confidence and efficiency to manage your finances effectively.


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Frequently asked questions

Can we pay the EMI amount in advance?

Yes, with the Bajaj Finserv Insta EMI Card, you have the option of paying the EMI amount in advance to enjoy reduced monthly instalments and do away with the stress of making timely EMI payments.

How can I close my EMI in advance?

To close your EMI in advance with the Bajaj Finserv Insta EMI Card, you can visit our customer portal – My account. There, you have sign-in using your registered mobile number, go to ‘My Relation’ and choose the option to pay your EMIs in advance.

Can I opt for EMI in advance if the interest rate is floating or fixed?

Whether the interest rate is floating or fixed, you can opt for EMI in advance with the Bajaj Finserv Insta EMI Card and enjoy the advantages of lower interest costs and improved loan eligibility.

Does the interest get deducted from the beginning itself when it is an advance EMI?

Since the Insta EMI Card is a No Cost EMI Card, there is no interest that is added to your EMIs.

Is advance EMI good?

Advance EMI can be beneficial for those seeking financial predictability and efficient budgeting. It allows individuals to plan ahead and avoid the burden of monthly payments, offering greater convenience and peace of mind.

How does advance EMI work?

Typically, advance EMI involves paying a portion of the loan amount or purchase price upfront, before the loan or credit is disbursed. Subsequently, regular EMIs commence. This payment structure helps you secure financing promptly and enables lenders to reduce the risk of defaults.

What are the benefits of an advance EMI payment?

Advance EMI payments offer several advantages. They facilitate better financial planning and help avoid cash flow disruptions, as the initial payment reduces the EMI burden in the following months.

What happens if I pay advance EMI?

Paying advance EMIs can bring several benefits. You may qualify for discounts, reduce overall interest payments, and enhance your creditworthiness. It fosters disciplined financial habits and provides peace of mind, knowing you have settled future payments ahead of schedule.

What is the meaning of EMI in advance?

EMI in advance refers to making a loan or instalment payment before the scheduled due date. Choosing this option can lead to financial advantages, such as potential discounts and decreased interest payments. It signifies a proactive approach to managing finances, promoting responsible money habits and overall savings.

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