How to Make Advance EMI Payment Online: A Detailed Guide

Updated on: 13 May 2025

EMIs make loan repayments easy by spreading them across monthly instalments. But what if you have some extra funds and want to pay more — or even finish your loan sooner? That’s when the question arises: ‘Can I pay EMIs in advance?’
Yes, many lenders allow advance EMI payments or prepayments — often through simple online options. It’s a smart way to reduce your interest and become debt-free faster.

However, it’s important to check prepayment charges, how it affects your loan tenure and whether it suits your current budget.

Read on to understand how advance EMI payment works, its benefits and what to keep in mind before you go ahead.

What is an Advance EMI Payment?

When you take a loan, lenders decide on a fixed instalment amount based on your repayment capacity and other factors. You need to pay this amount on a designated date each month for the chosen tenure.

If you make a payment before the date or more than the decided amount, it counts as an advance EMI payment. For example, say you pay a home loan EMI of ₹15,000 on the 5th of the month. Now, if you make a payment on the 3rd of the month, this is an advance payment towards your home loan.

Difference Between Advance and Arrear EMI Payment

Also called standard EMI, arrear is a type of EMI payment where the lender doesn’t deduct the first EMI from the loan amount. This type of EMI is ideal for borrowers without having sufficient funds to make a down payment. Thus, lenders disburse the entire loan amount after deducting only the processing fee.

In contrast, advance payment is when the lender deducts the first EMI, along with a processing fee, before disbursement. The benefit of this is that it lowers your principal loan amount. Consequently, your EMI and interest also decrease.

To better understand, here are the key differences between advance and arrear EMI payments.
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Also Read: Online Loan Payment

Benefits of Paying EMI in Advance

Here are some of the advantages you can enjoy with advance EMI payment

It is wise to use your surplus funds as it lowers your debt liability.

It helps you lower your monthly EMI repayment burden, helping you budget your finances smartly.

It improves your credit score, as paying your EMIs before the due date reflects positively on your finances.

It lowers the payable interest amount, as the advance payment lowers your principal amount.

It allows you to opt for a lower tenure, which helps you save on interest and achieve financial freedom sooner.

Things to Check Before Paying EMIs in Advance

Foreclosure Charges: Some lenders levy fees for prepaying part or all of your loan. Always check this with your lender whenever you take a loan.

Loan Type Rules: Fixed and floating-rate loans may have different prepayment policies. Make sure you confirm with your lender.

Interest Impact: Ask whether prepaying reduces the interest or just shortens the loan tenure.

EMI Cycle Date: Timing matters. Paying close to the billing cycle may cause delays in adjustment.

Updated Loan Statement: Ensure your new balance and EMI schedule reflect the advance payment.

NOC or Acknowledgment: Get written confirmation or receipt to avoid future discrepancies.

Financial Priorities Check: Don’t deplete your savings. Ensure prepayment doesn’t affect your emergency or investment funds.

Steps to Pay Your Loan EMI in Advance

To pay your EMI in advance, you can opt between the lender’s web or mobile portal. Here are the steps you can follow:

Step 1: Go to the lender’s net banking or mobile banking portal.

Step 2: Log in with your credentials.

Step 3: Go to the loan section.

Step 4: Select the loan account and amount.

Step 5: Select your preferred payment method.

Step 6: Complete the process by following the instructions on the screen.

If you make a payment with the steps before the due date, it counts as an advance EMI. Note that this is a general overview, and the specific steps may vary depending on the lender.

Following the steps mentioned above, you can pay your EMI amount in advance and reduce your financial liabilities.

For this, you can opt for the Fibe Instant Loan, which has no use restrictions, alternative credit access, and competitive interest rates. You can enjoy a loan amount of up to ₹5 lakhs with swift dispersal and repay with a comfortable tenure that fits your budget. Download our Personal Loan App or apply on our website now.

FAQs on Advance EMI Payment

Is it ok to pay EMI before the due date?

Of course! There is no harm in paying your EMIs in advance. Contrastingly, it helps you enhance your positive credit history, boost your credit score and avoid the risk of defaults.

Is advance EMI payment good or bad for credit?

Paying your EMIs before the due date is good for credit. This is because when you miss an EMI, your credit score drops. With advance EMI payment, you eliminate the possibility of missing the date, which is why it’s a smart idea for maintaining good financial health.

Can I pay all EMIs at once?

Yes! And it’s called pre-closing the loan account. For this, you need to contact your lender and make a one-time payment for your complete loan amount plus interest. So, if you have a question, ‘Can I pay EMI in advance all at once?’ then you need to go in for a loan pre-closure.