Reduce Personal Loan EMI

Personal loans help you pay for your expenses without compromising any of your assets when you’re running short of funds. But you need to repay the borrowed amount to the lender someday. Getting approved for personal loan is quite easy and requires minimum paperwork but the burden of repayment is still huge for many. 

In case you are one of the borrowers looking for ways to reduce their personal loan EMI amount, you have reached at the right place. We have listed some simple ways to help you reduce your personal loan EMI amount. 

How to Reduce Your Personal Loan EMI?

Here are few simple ways reduce your personal loan EMI amount.

• Opt for a Higher Down Payment

If you are taking a personal loan to buy a car or a property, try to pay a higher down payment. This helps you reduce your loan amount and the personal loan EMI. The interest calculated on the loan amount will also be lower as the bank calculates the same on the principal amount borrowed. 

• Choose a Longer Loan Repayment Tenure

Longer repayment tenure helps you get a lower loan EMI amount. The personal loan lender divides the loan EMIs into the tenure selected by the borrower. The longer the tenure is the higher the number of loan EMIs will be there to pay. Make sure you go through the loan EMI schedule before opting for a longer or shorter tenure.

• Take Loan from Your Existing Bank

Taking a personal loan from your existing bank can help you get the lower interest rates and EMI amount. If you are already a customer with the bank, you have the leverage to negotiate on the interest rates and the loan tenure. The best part is there is no additional documentation required with an existing bank and you can get the personal loan application approved in no time. 

• Negotiate for Lower Interest Rates

Make sure you maintain a good credit score as it helps you negotiate the loan amount and the interest rates with your preferred bank. The lenders are more likely to provide loans to borrowers with good repayment history and a healthy credit score. Such borrowers always pay their loan EMIs on time and are less likely to become a defaulter and miss out on their loan repayment. 

• Compare Loan Options 

Make sure you explore multiple loan options before opting for one. The best way for doing this is by visiting the personal loan section on our website. On the website, you can go through the personal loan offers from different banks with their interest rates and eligibility criteria. The best part is that you can also calculate your own EMI amount using the personal loan EMI calculator available on the website. This helps you figure out the amount you need to pay every month based on your details like monthly income, the required loan amount, chosen tenure, and more. This helps you manage your finances more efficiently while enjoying the benefits of a suitable personal loan offer with lower interest rates and a reasonable EMI amount.

• Prioritise Your Loan Repayments

There are a few personal loan lenders that offer higher interest rates. If you have opted for one of such loans, make sure you prioritise your loan repayments. This helps you avoid paying additional interest on delayed loan EMIs. In case the loan instalments remain unpaid, you may need to pay a higher amount of interest to get rid of the entire loan amount.

• Choose a Balance Transfer Loan

Balance Transfer is a type of loan that enables you to consolidate all your debts. The service is usually offered by credit card lenders. The credit cards with a balance transfer facility allow you to consolidate the outstanding amount of all the credit cards that you have and transfer the same to the credit card with a balance transfer facility. This way, you can convert the entire credit card debt amount into monthly EMIs and repay the same with great ease. 

The same goes for personal loans. Some major personal loan lenders in the UAE offer this facility for borrowers. They enable them to consolidate their loan amount and repay the same by taking an additional higher amount personal loan. You can opt for this facility and make a single reduced amount EMI for the entire debt.  

How to Reduce Tenure of Personal Loan?

Here are the two most effective ways how you can reduce the tenure of a personal loan. 

• Opt for Higher EMIs

Borrowers can opt for paying a higher amount of loan EMI. This helps them save on interest while reducing the loan tenure. Most loan providers enable card members to borrow loans at lower interest rates with a shorter tenure. The borrowers can perform research find one of such lenders and apply for a personal loan with a reduced loan term. 

• Make Partial Pre-Payments

Another effective way of reducing your personal loan term is pre-paying a higher portion of the outstanding amount. This enables loan providers to divide the remaining amount into a shorter tenure while not reducing the loan EMI amount. The best way to find out the loan EMI amount is using a personal loan calculator available on our website. You may need to enter a few details like your monthly income, the loan amount, the portion you are planning to pre-pay, chosen loan term, and more.

The Bottom Line

We hope this article helps you with ways to reduce your personal loan EMI and tenure. If you want to explore personal loan options based on your financial preferences, you can simply visit our website and go to the personal loan section. You can also use the online personal loan calculator to evaluate the loan EMI amount and have a clear understanding of a loan repayment schedule before you apply for one. 

Do not hesitate to contact our customer support helpline in case you need further assistance. Our financial experts will take you through the entire set of benefits, interest rates calculation, loan tenure options, and other factors affecting your personal loan choices. And not just that, you can consider talking to our representatives even if you want to reduce your loan EMI amount for an active personal loan.