look news india
Make pre-payment as far as possible.
An easy way to reduce the loan EMI is to pre-pay as much as possible. If you have savings apart from your expenses or you get a large fund from somewhere, then you can reduce the EMI of your loan by pre-paying. Whenever you make a pre-payment, that amount is directly reduced from the principal. In this way your monthly installment also reduces.
Extend the loan tenure.
Many times it happens that the monthly expenses are getting affected due to the home loan EMI. In such a situation, if there is no additional income or savings, then you can reduce the EMI by increasing the loan period. But, one disadvantage of this will be that you will have to pay more interest.
Get your home loan transferred
While choosing a bank for home loan, always compare the interest rates. Take loan from the one where you get a good deal. Many times it happens that you have taken a home loan from a bank, but the interest rate in another bank is lower, then you can get the loan transferred. Always get the best deal and get the loan transferred whenever you get a chance.
Talk to the bank about better rates.
Banks often offer additional discounts on interest rates to their customers with good repayment track records and CIBIL scores. If you have a good record, you can talk to your bank to reduce your home loan interest rate. This will reduce your EMI.
You can increase the down payment.
While taking a home loan, try to make the down payment as high as possible. This is because a higher down payment of Rs 1-2 lakh can reduce your EMI by Rs 2-3 thousand. Apart from this, interest is also saved.