Personal Loan In today’s time, it has joined the need. Personal loan is the easiest option if money is needed immediately. Due to this, many people take personal loans despite the banks and NBFCs charged more interest. If you too have taken a personal loan and are disturbing the burden of EMI, then do you know that you can reduce your EAMA by taking some measures. Let us tell you how you can reduce your EMI.
Balance transfer option
After the RBI cut the repo rate, many banks are offering personal loans at cheap interest. Taking advantage of this opportunity, you can transfer your loan to a low interest bank. This will help you to reduce the EMI of personal loan. You can easily transfer the outstanding amount. However, before transfer, you must assess interest amount and all the charge.
Increase loan duration
If you are having trouble paying EMI, then increase the loan duration. By doing this your EMI reduces and the loan burden is reduced. Remember, such steps can increase the total interest you pay on the outstanding loan amount.
Choose pre-payment option
You can also choose pre-payment options to reduce the EMI of personal loan. You can reduce the loan EMI by pre-payment with bonus amount or any extra income money. Many banks and financial institutions offer borrowers the option of pre-payment after some initial EMI. Banks like Yes Bank, ICICI Bank, HDFC Bank provide pre-payment.
Choose step-down EMI plan
Choosing step-down EMI plan is another very effective way to reduce the EMI of personal loan. Banks like HDFC Bank, Kotak Mahindra Bank, ICICI Bank offer step-down EMI options. Under this, more installments are given at the beginning, which later decrease gradually as the payment of principal moves forward.
Improve credit score
If there is a good score (750+), you can get a loan at a low interest rate. You can also reduce the burden of loan EMI by using this option.
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