Reducing your loan EMIs helps you manage your finances with ease and also reduce the overall financial burden on your budget. Home loan EMI depends on several factors, including the interest rate, principal amount, and tenor.
Discussed below are some of the ways that you can follow to reduce your EMIs –
Pre-payments
Consider choosing pre-payments in case you have the required financial stability to pay off the remaining amount of your home loan. You can also avail part of pre-payments, where you pay some portions of your principal amount that reduces your outstanding dues and the following EMIs. To calculate your EMIs after pre-payment you can use a specific home loan calculator, India.
Opt for longer tenor
Prolonged tenors help in making your home loan EMI affordable. However, the total cost of a loan and the interest amount may become comparatively higher than advances with shorter tenor. It is one of the most common ways to reduce home loan EMIs.
Although, before opting for longer tenors it is essential for you to analyse your financial stability.
Balance transfers
Balance transfer facilities help you carry your outstanding dues from your existing lender to a new financial company that offers advances at lower interest rates. With better rates, your EMIs become affordable and reduces your financial burden.
Furthermore, while you opt for balance transfers, it is best to do so at the initial stages of your repayment tenor as the payable interest amount is higher than the principal payable amount. When you opt for a balance transfer facility at the initial stage, it will help you save on the interest amount while lowering your home loan EMI.
