EMI Tips: So what if interest rates aren't cut? These 5 solid strategies can be your weapons...

The results of the RBI monetary policy are out. People were hoping that the Governor might announce a decision to cut interest rates during the festive season, but that didn't happen. RBI Governor Sanjay Malhotra, on the one hand, decided to keep the repo rate stable at 5.5%. This decision dashed people's hopes of lower EMIs. If you're thinking the same, don't worry. You still have solid ways to reduce your EMI burden. Learn more about them here.

Refinance the Loan

If your home loan interest rate is high, resulting in a significant monthly EMI payment, you can refinance the loan. Loan refinancing involves taking out a new loan with lower interest rates and closing the old loan. Repayment of the new loan is then initiated. VIDEO: Citroen Aircross shines in Bharat NCAP test

Make a prepayment
Whenever you receive a bonus, savings, or extra income, use that money to prepay your loan. Prepaying your loan will reduce your principal amount and lower your EMI.

Extend the loan tenure
If your EMI is too high and is disrupting your household budget, you can extend the tenure of your loan. Increasing the tenure will reduce your EMI, but it will increase the total interest charged on the loan.

Take advantage of subsidies or government schemes
If you're buying a home for the first time, take advantage of government schemes like the Pradhan Mantri Awas Yojana (PMAY). This scheme offers interest rate subsidies. Also, try to make a higher down payment when taking out a loan. This will ensure your EMI remains within your reach, making it affordable. VIDEO: RBI's new banking rules from October 1, EMI and gold loan relief

Talk to your bank
If you have been repaying your loan on time for a long time and are a reliable customer, you can request a reduction in your interest rate. Sometimes, banks offer the benefit of lower interest rates to their long-time customers.

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