Have you taken a personal loan? When you get any loan, you need to repay that amount using the EMI method. Every month, you need to pay a certain amount to settle your loan amount. In this blog, we will talk about the ways that can help you reduce your EMI amount.
Not only reducing your monthly amount, you will also learn about important aspects that you must learn. We hope this blog will help you massively in the long run. Professionals can now use a DSA app to track existing loans and get the best service possible.
What is EMI on Personal Loans?
Before going through some of the major aspects that can impact your personal loan EMI, we need to learn about the basics of Personal loans and the EMI aspect. Equated Monthly Installment is the amount you have to pay the bank or Non-banking Finance company to settle your pending loan amount. If you keep paying the amount directly, it will help you close the loan book without many issues.
How to Reduce Your EMI Amount?
As we want to reduce the monthly payable amount, the following aspects will help you-
- Change The Tenure of Your Loan
If you are looking for the simplest thing, we would recommend you change the tenure of the loan. Once you increase the loan tenure, your monthly payable amount will be less. Remember, when you have increased the loan tenure, you must keep in mind that the interest will increase simultaneously. If you are ok with it, you can do this thing.
- Interest Rate on The Loan Is the Most Important Factor
The rate of interest related to that particular personal loan is the most important factor. If, by any method, you can change the interest rate, your EMI will also change. Only if you have a credible financial history can you talk to the bank and negotiate the interest rate. Then, it is the bank that will decide if you should get the facility or not.
- Can We Transfer the Balance?
Next, we have is balance transfer method. Here, you can transfer your loan to a different bank or NBFC. When the lender is different, the terms and conditions will also change with it. This will surely make changes in your EMI. Talk to an expert who can help you do this process.
- Learn About Part Payment System
Part-payment could be a valid way to reduce your EMI pressure. When you have some surplus amount, you can make the loan repayment and reduce the overall pressure of your loan.
- Choose A Loan with A Low Interest Rate
Finally, we can reduce our loan EMI by choosing a different loan option with a low interest rate. Once you find a loan that is offering a relatively low interest rate, get that loan and pay your existing loan back. Now, you have to repay only one loan, that too with a lower interest rate. Talk to a personal loan DSA agent and get help in these matters.
Things You Must Consider While Choosing a Personal Loan
Whenever you are dealing with these kinds of loan matters, you must keep some important aspects in mind. Here are a few of them-
- When you increase or decrease the loan tenure, there is a charge associated with them. Learn about them in advance and do the necessary to avoid possible charges.
- Once you change the tenure, it can reduce the EMI but the total interest payment will be increased. Understand this aspect before taking the call.
- Your credit score plays a major role in loan-related matters. In India, having a credit score over 750 is considered as good. You must aim for the same.
- Make a financial goal for the next few years. It will help you to take decisions that can help in the long run.
Tips That Can Help You in The Long Run
Here are some final tips that will improve your experience related to personal loans-
- Checking the terms and conditions of a particular loan is important. Before taking any financial decision, this knowledge will help you for sure.
- Do you use automated payment? When you have to pay a monthly amount, it is good to have automated payment.
Following these simple aspects will surely improve your personal loan experience and reduce some of the pressure you are feeling.
