6 Simple Ways to Reduce Your Home Loan EMI - EPrajatantra

6 Simple Ways to Reduce Your Home Loan EMI


Buying a home is an expensive decision. It is hard to get the best EMI. So you need to keep track of your loan status and make changes accordingly so that you can get the best interest rate for your loan.

Below are six ways to reduce your mortgage payments:

6 Simple Ways to Reduce Your Home Loan EMI 

Make a Prepayment in Part

A good way to make your EMI lower is by making a partial payment during your tenure. This will help you pay off a chunk of the total loan amount and, therefore, reduce the EMI you have to pay. If you save up your extra money or bonuses from different jobs, then this can also work in helping you make a prepayment.

Transfer to Another Lender

When you borrow money from a lender, they may allow you to transfer your loan to another lender if the interest rate is different. It is a good feature that you should use. You can still compare loan offers even after you have received the money for your house. If the interest rates change, transfer it so that you are paying less every month.

Extend the Tenure

If you make your mortgage long, you might pay less for each payment. If you are really in a tough spot with money, this is the way to go.

Fixed and Floating Rates

You will usually pay more for a fixed-rate loan. Lenders like to charge more for this type of loan, and it is about 1-2% higher. You can either start with a floating-rate or shift if your lender allows you too. If they do, make sure you keep an eye on the floating rate and shift based on it.

Interest Rate Regimes

There are lots of different interest rates. At different times, the best interest rates are in different regimes. You should keep track of which is which and what your current one is. If there is a better option with a lower home loan EMI, you can pay a small fee and change your regimen to that one.

Loan Restructuring

Many people have had problems paying their loans because of the plague. The Reserve Bank of India has made a plan to help them. All you need to do is talk to your lender and ask for help. They will take off all your monthly payments for a while, and give you an extension on the loan.

Do you need to take out a loan? Make your loan as affordable as possible. One way to do this is by finding a lender that offers these provisions.

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