Personal loans are a great way to meet your financial needs without risking your assets. Personal loans can be obtained for a number of reasons, including an emergency or achievement of your goals. However, you must keep in mind that your personal loan EMIs may turn into an additional monthly expense. Furthermore, if you do not carefully plan out your funds, they may have an effect on your budget and feel like a burden. Here, we’ll discuss strategies for lowering your personal loan EMIs to ease your financial burden.
Ways to Reduce EMIs of Your Existing Personal Loan
Below are some tips to reduce your EMI for personal loans.
Consider a step-down EMI plan
A step-down EMI plan is designed to ease your loan burden over time. In this arrangement, you start with higher EMIs initially, and gradually, the EMI amount decreases as the loan tenure progresses. This is beneficial if you expect your income to increase in the future or if you want to manage higher EMIs early on and reduce the financial strain over the loan’s duration.
Choose a loan with a longer repayment tenure
Opting for a personal loan with an extended repayment tenure can significantly reduce your monthly EMIs. While a longer tenure means you’ll be repaying the loan for an extended period, it can make the EMI amount more affordable, making it easier to manage your finances on a monthly basis. LoanTap provides a flexible repayment tenure. You can choose from 6 months to 60 months.
Opt for a higher down payment
By making a higher down payment at the time of taking a loan, you can effectively reduce the principal amount. A lower principal means lower EMIs. Additionally, it may also improve your loan eligibility and bargaining power with the lender.
Make a part-prepayment
If you have surplus funds, consider making a part-prepayment towards your existing personal loan. By reducing the outstanding principal amount, you can subsequently request that your lender lower the EMI amount. However, ensure you check for any prepayment charges and calculate the potential savings before proceeding.
Take a balance transfer loan
If you find that another lender is offering a personal loan at a lower interest rate, you can opt for a balance transfer. Transfer your existing loan to the new lender, and you might benefit from reduced EMIs due to the lower interest rate offered by the new lender.
Conclusion
Managing your existingpersonal loan EMIs can be a transformative step towards achieving financial stability. With affordable personal loan options from LoanTap, you can manage your finances affordably. By exploring various strategies such as step-down EMI plans, longer tenures, higher down payments, and part-prepayments, you can effectively ease the burden of monthly repayments. Additionally, leveraging your existing banking relationships and considering balance transfer loans can offer attractive alternatives for reducing EMIs. Remember, a well-informed approach, coupled with prudent financial decisions, will empower you to take control of your loan obligations and pave the way for a smoother and more secure financial future.
