How to Reduce Personal Loan EMI
Personal loan is the most popular type of loan product mainly owing to the fact that it can availed easily with minimum documentation procedure and obtained within a short time span
Personal loan is the most popular type of loan product mainly owing to the fact that it can availed easily with minimum documentation procedure and obtained within a short time span. Personal loans are the best thing that can happen to you if you are in dire need of money or planning a wedding or a vacation. Since personal loans is an unsecure loan, which means there is no guarantee or collateral required for these loan, the rate of interest at which personal loans are offered by the bank is on the higher side. If your need has been met and you are in a position to repay your loan either fully or partially it won’t hurt to get rid of your personal loan. As a borrower you always have the flexibility to choose your loan tenure and your loan amount and thus adjust your personal loan Emi. You may want to consider the tips mentioned below if you are looking out to reduce your personal loan EMI:
- Opt for longer loan tenure:
Loan tenure of a personal loan is inversely proportional to the EMI amount of your loan, therefore opting for a longer loan tenure will allow you to disburse the total due amount over a longer time span which will in turn help you in reducing your loan EMI. It is important to understand the fact that while you are opting for longer loan tenure the interest levied on the loan will be on the higher side. You must only opt for longer loan tenures if you cannot afford the higher loan EMI.
- Opt for a lower rate of interest:
Rate of interest plays a vital role when it comes to that would affect the amount of principal loan disbursed and also the tenure for which the loan has been disbursed. When you opt for a loan with lower rate of interest you also choose shorter loan tenure. If you can pay the loan faster by paying higher EMI then you can opt for a loan with short loan tenure. A loan that is borrowed at a low rate of interest will help you repay your debt at a faster pace.
- Opt for balance transfer:
If you have borrowed a high cost loan you can avail personal loan refinance at a lower cost loan. Balance Transfer Loans can be availed at a lower rate of interest and thus help you cut down on your personal loan EMI drastically. You can also avail a top-up on your high amount loan.
- Consider your existing bank while taking a loan:
If you are reliable customer of the bank borrowing loan from such bank can work in your favor as you may have the freedom to negotiate the terms and conditions of your personal loan. If you hold a good relationship with your bank you may able be able to avail personal loan at a low rate of interest.
We at LBIT, assist you with various offers on your existing loans as well as new loan products. You can apply for personal loan refinance and plan your prepayment all through our single window. All you need to do is to login and save your loan account details with us and our experts will get in touch with you.