Job loss + Rs 10,000 EMI: What’s the best way to repay my loan, build emergency savings?
Managing a Rs 2.5-lakh personal loan after losing your job is challenging, especially with family expenses in the mix. One financial expert outlines how to prioritise repayments and restart emergency savings. Freelancers with fluctuating income are advised to request a temporary moratorium on EMIs to protect their credit score while stabilising earnings.
- Nov 15, 2025,
- Updated Nov 15, 2025 4:59 PM IST
I recently lost my job and currently have an active personal loan of Rs 2.5 lakh, for which the EMI is around Rs 10,000 per month. I don’t have any savings at the moment and want to figure out the best way to manage or close this loan as soon as possible. I’m starting to look for freelance clients and expect to earn about Rs 40,000 a month if things go well. Of this, Rs 25,000 goes toward my mother’s monthly expenses. How should I allocate the remaining amount to repay the loan efficiently while also beginning to build some emergency savings?
Advice by Dev Patel, Quantitative Research Analyst at 1 Finance
The most important thing right now, concerning the loan, is to contact your lender immediately and request a moratorium (temporary relief by pausing EMIs) for 6-12 months. Most banks and financial institutions offer this facility during financial hardship. This will pause your EMI payments temporarily without marking you as a defaulter, protecting your credit score while you stabilize your income through freelancing. Write an email to the bank’s grievance redressal or customer care to raise a formal request. Please include your loan account details, sanction letter, and repayment schedule, along with the moratorium duration you are seeking. Clearly explain your current job situation and attach proof of job loss to support your request.
While freelancing can be a good income source, it's important to remember that freelance income is not guaranteed or fixed like a salaried job. Use this time to upskill. The more value you can provide to clients, the more stable and higher your freelance income will become.
Once your freelance income reaches Rs 40,000 a month, cover your mother’s expenses of Rs 25,000, leaving Rs 15,000 for financial priorities. From this, pay Rs 10,000 towards your loan EMIs consistently and set aside Rs 5,000 for emergency savings. This disciplined approach ensures you stay on track with your repayments while slowly building a safety net. Even the Rs 5,000 saved each month grows into Rs 60,000 a year.
Do not take another loan to repay this one. This creates a debt spiral that's extremely difficult to escape. Taking on new debt when your income is unstable will only worsen your situation.
If you have family or friends who can support you through this difficult phase, don’t hesitate to reach out. Even a small contribution, like helping with your mother’s expenses for a few months or covering part of your loan, can ease a great deal of pressure.
This experience is a valuable lesson. Plan before you borrow. Future borrowing should always be preplanned with a clear repayment strategy that accounts for your regular expenses and includes a buffer for emergencies. Responsible borrowing means borrowing only what you can comfortably repay, even if circumstances change.
Always consult a qualified financial advisor before taking any sort of credit. They will first evaluate whether taking the loan is truly necessary. If it is, they will then assess your affordability and identify the most suitable lender offering fair interest rates, transparent charges, and flexible repayment terms that fit your financial situation.
Disclaimer: Business Today provides market, bullion, crypto and personal news for informational purposes only and should not be construed as investment advice. All investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
I recently lost my job and currently have an active personal loan of Rs 2.5 lakh, for which the EMI is around Rs 10,000 per month. I don’t have any savings at the moment and want to figure out the best way to manage or close this loan as soon as possible. I’m starting to look for freelance clients and expect to earn about Rs 40,000 a month if things go well. Of this, Rs 25,000 goes toward my mother’s monthly expenses. How should I allocate the remaining amount to repay the loan efficiently while also beginning to build some emergency savings?
Advice by Dev Patel, Quantitative Research Analyst at 1 Finance
The most important thing right now, concerning the loan, is to contact your lender immediately and request a moratorium (temporary relief by pausing EMIs) for 6-12 months. Most banks and financial institutions offer this facility during financial hardship. This will pause your EMI payments temporarily without marking you as a defaulter, protecting your credit score while you stabilize your income through freelancing. Write an email to the bank’s grievance redressal or customer care to raise a formal request. Please include your loan account details, sanction letter, and repayment schedule, along with the moratorium duration you are seeking. Clearly explain your current job situation and attach proof of job loss to support your request.
While freelancing can be a good income source, it's important to remember that freelance income is not guaranteed or fixed like a salaried job. Use this time to upskill. The more value you can provide to clients, the more stable and higher your freelance income will become.
Once your freelance income reaches Rs 40,000 a month, cover your mother’s expenses of Rs 25,000, leaving Rs 15,000 for financial priorities. From this, pay Rs 10,000 towards your loan EMIs consistently and set aside Rs 5,000 for emergency savings. This disciplined approach ensures you stay on track with your repayments while slowly building a safety net. Even the Rs 5,000 saved each month grows into Rs 60,000 a year.
Do not take another loan to repay this one. This creates a debt spiral that's extremely difficult to escape. Taking on new debt when your income is unstable will only worsen your situation.
If you have family or friends who can support you through this difficult phase, don’t hesitate to reach out. Even a small contribution, like helping with your mother’s expenses for a few months or covering part of your loan, can ease a great deal of pressure.
This experience is a valuable lesson. Plan before you borrow. Future borrowing should always be preplanned with a clear repayment strategy that accounts for your regular expenses and includes a buffer for emergencies. Responsible borrowing means borrowing only what you can comfortably repay, even if circumstances change.
Always consult a qualified financial advisor before taking any sort of credit. They will first evaluate whether taking the loan is truly necessary. If it is, they will then assess your affordability and identify the most suitable lender offering fair interest rates, transparent charges, and flexible repayment terms that fit your financial situation.
Disclaimer: Business Today provides market, bullion, crypto and personal news for informational purposes only and should not be construed as investment advice. All investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.