From The Economic Times · Spotlight Wire · · 1m 30s
Simple ways to reduce personal loan EMI burden
Use EMI calculators, partial prepayments, and smart borrowing to cut monthly loan costs without straining your budget.
In brief
Use EMI calculators, partial prepayments, and smart borrowing to cut monthly loan costs without straining your budget. Review loan terms, make partial prepayments, and borrow only what's needed to keep EMI affordable. Originally reported by The Economic Times.
Understand your current EMI
Review loan amount, interest rate, remaining tenure, and outstanding principal to see what you're truly paying.
Use an EMI calculator
Enter different loan amounts, interest rates, and repayment periods to compare potential EMI costs and savings.
Extend repayment tenure
Longer repayment periods lower monthly EMI but increase total interest paid over time.
Make partial prepayments
Reduce outstanding principal to lower EMI and shorten repayment tenure, subject to lender terms and fees.
Borrow only what's needed
Assess actual funding gaps to avoid unnecessary loans that strain your monthly budget.
Refinance carefully
Compare total interest costs and repayment periods before switching loans to avoid higher long-term costs.
Track income changes
Review budget regularly when income or expenses shift to prevent EMI overburdening your finances.
Cut discretionary spending
Reduce subscriptions, dining out, and non-essential purchases to free up cash for EMI payments.
Check prepayment charges
Verify lender fees and conditions before making partial prepayments to avoid unexpected costs.
Use EMI calculator for scenarios
Test different repayment options like shorter tenures, interest rates, and loan amounts to find the best fit.
The short version
Review loan terms, make partial prepayments, and borrow only what's needed to keep EMI affordable.
