9 powerful tips to manage EMI for 10 lakh Personal Loan

Is it possible to reduce the EMI of a Personal Loan? It is a common notion among borrowers looking to ease their financial burden. Fortunately, the answer is yes! Here are simple strategies to ease your Loan repayments and have control over your finances:

Consider a step-down EMI plan

Initiate your Rs. 10 lakh Loan repayment journey with higher EMIs and enjoy decreasing payments over time through a step-down EMI plan. It clears a significant portion of the principal and interest upfront and reduces the financial burden as you approach retirement. 

Make a partial payment

Make part-prepayments after a set number of EMIs by investing extra funds, like bonuses, towards your Loan’s principal. A drop in the outstanding balance and interest decreases the EMI and shortens your Loan duration.

Opt for a Balance Transfer Loan

Consider lowering the EMI for your Rs. 10 lakh Personal Loan by transferring it to a lender offering more favourable terms, like lower interest rates or extended tenures. To ensure this move benefits your financial scenario, always assess processing fees, foreclosure charges, and associated terms.

Avail of a Personal Loan top-up with low interest rates

If you pay your EMIs consistently, you can request a top-up Loan from your lender. Thanks to your reliable repayment history, it provides additional funds and comes at lower interest rates and potentially lower EMIs.

Get the right Loan amount

You need to determine the ideal Loan amount to manage your EMIs and only borrow for expenses that exceed your current financial capacity. Even if your creditworthiness makes you eligible for a larger Loan, only apply for what you need. It ensures that your Loan repayment does not become a burden. You can adjust the Loan amount only before the disbursement stage. 

Choose the right Loan tenure

Your Loan tenure inversely affects your EMI payments. Longer tenures lead to smaller EMI payments and vice versa. Extending the repayment period might make payments more manageable, but it results in paying more interest over time. If you aim to minimise interest costs, opt for a shorter tenure with higher EMIs, provided it aligns with your monthly budget.

Do not miss your EMI due dates

Setting up automatic payments for a Rs. 10 lakh Loan prevents late payments, ensuring you always get all due dates. It simplifies your financial management and helps build a strong credit profile. 

Calculate your EMIs before application

Using Personal Loan EMI calculators available on the lenders’ websites helps estimate your monthly payments and interest rates and make informed decisions about your Loan amount and tenure. 

Use a Personal Loan for debt consolidation

If you have borrowed multiple Loans with varying interest rates, consolidating them into a single Personal Loan helps significantly lower your EMI payouts and simplifies your debt management.

While applying for Personal Loans, keep your EMIs manageable and pay them off efficiently.