The easiest way to reduce loan EMIs is to prepay as much as possible. If you have savings on top of your expenses or get a large sum from any source, you can reduce your EMI loan by prepaying it.
How to reduce home loan EMIs: To control rising inflation, interest rates are raised by central banks around the world. BANK OF INDIA’ target=”_blank” title=”reserve bank of India-Latest Updates, Photos, Videos are just a click away, CLICK NOW’> Reserve Bank of India (RBI) continues to increase repo rate. After the RBI announcement, many banks raised their interest rates on home loans. This will have a direct impact on the monthly payment (EMI) of mortgages, and car loans. In such a situation, if you want to reduce the costly EMI of home loan, you will find 5 tips for that in this post.
Prepay as much as possible:
The easiest way to reduce loan EMIs is to prepay as much as possible. If you have savings on top of your expenses or get a large sum from any source, you can reduce your EMI loan by prepaying it. Each time you make a prepayment, the amount is deducted directly from the principal amount. In this way, your monthly payment is reduced.
Extend the term of the loan:
Many times the monthly expenses are affected due to the EMI home loan. In such a situation, if you do not have additional income or savings, you can reduce the EMI by increasing the term of the loan. However, this will result in higher interest payments.
Always compare interest rates when choosing a payday loan bank. Get a loan wherever you can get a good deal. Sometimes you have a loan from one bank, but another bank has a lower loan rate. At this time, the loan can be transferred to this bank. Always choose the best offer and transfer the loan to your preferred bank.
Talk to the bank for the best rates:
Banks sometimes offer additional interest rate relief to customers with good repayment tracking and a good CIBIL score. If you have a good record, you can talk to your bank to get the lowest interest rate possible. This will reduce your NDEs.
The deposit can be increased:
When you take out a home loan, try to put down as much of the down payment as possible. Because even a higher down payment of Rs 1-2 lakh can reduce the EMI to Rs 2-3 thousand. Apart from this, interest is also saved.