No, choosing the lowest possible equated monthly instalment (EMI) is not the best way to go about taking a personal loan.

Low EMI offers are a result of two main factors such as:

- Low interest rate

- Long repayment term

Sometimes, low EMIs are also a result of a combination of the above two factors.

If you approach your loan from the point of view of paying the lowest EMI possible, you are making a serious mistake. This is because although the EMI won’t pinch you on a monthly basis, given that it’s a small number, it will do your finances more harm in the long term via interest on the elongated loan tenure.

Instead, you can use online tools like the personal loan EMI calculator to figure out your interest payout over the loan tenure and your repayment capacity before making a decision on how much EMI to pay.