Effective ways to reduce your Personal Loan EMI burden

We all make expenses to handle in our daily lives. Since not all are planned, you include them in your financial plan and can take care of them. However, things may not work as per your financial plan always. Unforeseen expenditures may arise, like funding a medical emergency, repairing the house, or a large business expense. A Personal Loan helps meet these financial requirements with ease.  

You can apply for a Personal Loan by meeting basic eligibility criteria. You can easily repay the Loan amount at competitive interest rates and flexible tenure. Personal Loans are generally repaid through Equated Monthly Instalment. Following are some practical ways to reduce your EMI burden: 

Appropriate Loan amount 

A common mistake most applicants make is applying for a Loan amount they are eligible for and not what they need. As per your financial profile, you may be eligible to apply for higher Loan amounts. However, do not apply for a higher Loan amount unless you need to. The Loan amount significantly impacts your EMIs. A higher Loan amount translates to a higher EMI. This increases the repayment burden. 

Apply for a Loan amount you can afford to repay. An EMI calculator decides a suitable Loan amount as per your affordability. 

Consider a longer repayment tenure 

Repayment tenure has a significant say over your Personal Loan EMI. You can apply for a term between 12 to 60 months. You can choose your repayment tenure. Hence, you need to think practically and apply for a longer repayment tenure. This translates to a lower EMI and vice-versa. You can use a Loan EMI calculator to determine an appropriate tenure for your Personal Loan request. 

For example, if you wish to apply for a Loan of Rs. 2 lakh at 10.99% interest rate for a tenure of 12 months, your EMI will be Rs. 17,675. If you think the EMI is out of your budget, consider increasing your tenure to 24 months to arrive at an affordable EMI amount. 

Find the best interest rates 

Personal Loan interest rates differ between banks. You should explore the market to get the best rate. Go online and check for the interest rates various banks offer on Personal Loans. Do not forget to enquire if the mentioned interest rates are fixed or floating. 

The Banking app lets you quickly find out about Personal Loan interest rates. You can perform other actions through the app, like applying for a Loan, checking your Loan application status, and making repayments. It is a simple and convenient way to handle all your banking needs.