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Personal Loan: Is the burden of loan installment bothering you? How to reduce the EMI of Personal Loan? Know these 5 easy ways..

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In today's time, when there is a sudden need for money, a personal loan is an easy and quick option. Banks and NBFCs also pass such loans quickly, but their interest rates (Personal Loan Interest Rates) are very high, due to which the EMI every month is heavy on the pocket of many people.

If you are also facing this problem, then now you do not need to panic. Here we are telling you 5 such easy and smart ways by which you can reduce your EMI, and the tension of the month can be reduced a little.

Increase the tenure of the loan.
If you are having trouble paying the EMI, then you can increase the tenure of your loan. By doing this, your EMI will be reduced. However, this may increase your total interest burden, but your monthly tension will be reduced.

Make a pre-payment from a bonus or extra income.
If you have received any bonus, side income, or savings money, then a part of it can be given as pre-payment on the loan. This will reduce the principal amount of the loan, and the next EMI may also be reduced. Many banks like HDFC, ICICI, and Yes Bank offer pre-payment facilities after a few months.

Interest will be reduced by the balance transfer.
If you had taken a loan at a higher interest rate and now some banks are offering loans at a lower interest rate, then you can transfer your loan to one of these. This is called a balance transfer. This can reduce the EMI on your loan. Just keep in mind that before transferring, check the processing fee or any other charges thoroughly.

Adopt a step-down EMI plan.
Some banks like HDFC, ICICI, and Kotak Mahindra offer step-down EMI plans. In this, the EMI is a little higher at the beginning of the loan, but it gradually decreases over time. If you have taken or can take such a plan, then it can reduce your long-term tension.

Improve credit score and get a better deal
If your credit score is above 750, then your chances of getting a loan at a lower interest rate increase. In such a situation, you can transfer the balance of the old loan by applying for a new loan. Also, a good credit history will benefit you in financial decisions in the future as well.

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