There are several kinds of repayment options for unsecured loans like:-

• EMI repayment with fixed or floating interest rates

• Balloon repayment with fixed or floating interest rates

• Single window repayment with fixed or floating interest rates

• Variable repayment with fixed or floating interest rates

The EMI repayment for unsecured loans refers to paying a fixed amount for the agreed term period until the loan is fully cleared. The principle and the interest rate for 36 through 60 months based on what the bank agrees are taken in to consideration. The sum thus arrived is divided in to Equal monthly installments and is payable monthly for 36 through 60 months as agreed.

Balloon repayment for unsecured loans is a system in which a predetermined small sum is paid for a said number of months. A big balloon payment is made at the end-term of the agreement sufficient enough to cover for the interest rate and the primary loan amount.

Single window repayment for unsecured loans is a system in which the money is borrowed at a said rate of interest and the amount in full is paid in one slot. The sum paid is the primary loan amount plus the interest rate payable for the said period in full.

Variable repayment for unsecured loans is a system where the interest rate on the EMI is fixed for a said period and then it turns out to be adjustable rate for some time during the loan repayment term.

Switching in between repayments options in unsecured loans is possible with some extra fee and some modified writing in the agreement; however, it should be noted, it is always wise to stick on to the original repayment plan as most of the switch over between repayment plans tend to make the price of unsecured loans costly. The same is not true for all cases; you need to consider the price of the agreement rewriting charge, and switchover charge etcetera in comparison with the original price of the loan before deciding on switching between repayment plans.

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