Lent money to a friend, or bought something on EMI for them? How to track it without the awkwardness
A friend uses your credit card for a phone on EMI, or you lend money to be paid back monthly. A clear way to track who owes what, every month, until it is settled.
It happens in every friend group. Someone needs a new phone and doesn't have a credit card, so they buy it on yours as a no-cost EMI and promise to pay you every month. Or you lend a cousin ₹60,000 for a course, to be paid back at ₹5,000 a month. It starts simple. Six months later, nobody is sure whether the April instalment was paid.
Money between friends goes wrong mostly because nobody wrote it down. Here's how to keep it clear.
Four common situations
- You lent money, to be repaid in monthly instalments.
- You borrowed money and are repaying it monthly.
- A friend's purchase went on your credit card as an EMI. The bank charges you every month; your friend pays you.
- Your purchase went on a friend's card as an EMI. You pay them each month.
In cases 1 and 3, they owe you. In cases 2 and 4, you owe them.
Before you agree: five questions
- What's the monthly amount, and for how many months? Write both down.
- What date each month? Line it up with the card's EMI date or the borrower's salary date.
- Who pays interest or fees? "No-cost" EMIs often carry a processing fee and GST on the interest. Decide who covers them.
- What happens if a month is missed?
- What if the item is returned or the card is closed?
A two-line message in your chat ("₹4,500 a month for 12 months from 5 November, fees on me") avoids most arguments later.
Tracking it month by month
The key is to track the plan, not just a balance:
- The instalment amount and number of months
- The first due date: the rest follow monthly
- Each payment as it happens, with the date
- What's left and when it ends
This also keeps your own records honest. If a friend's phone is on your card, the card EMI isn't your spending, and their repayment isn't your income. Both are money moving between you.
A friendly reminder beats an awkward one
The hardest part is asking. A reminder on the due date, to you, lets you send a light "EMI day 🙂" message before it turns into "you haven't paid in three months".
Using EMIs with friends in Dhuddu
The Dhuddu Android app has an EMIs with friends section for exactly this. Add a plan, choose whether they repay you or you repay them, the friend's name, the card it's on (if any), the monthly amount, the number of months and the first due date. Turn on a reminder if you want one on each due date.
Each plan shows paid instalments, the next due date and how much is left. When a payment comes in or goes out, tap Paid. You can also add it to that friend's running balance in Dhuddu, so everything you owe each other stays in one place. Totals at the top show how much is owed to you and how much you owe across all plans.
Clear records keep friendships easy. That's worth more than any EMI.