Personal loan offers are for every salaried or self-employed individual, offered by the banks, with adequate interest charges, to be returned in EMIs within allowed tenure. Personal loans boost your financial status for a short time. They can fulfil your temporary liquidity requirements to support any financial task. However, sometimes, when a loan is sanctioned with high-interest rates, the EMIs become overrated, more than the repaying capacity of the borrower. But there are many ways to reduce your EMIs on personal loans, out of which HDFC bank has informed about four.
4 Tips From HDFC Bank To Lower Your EMI’s on Personal Loans
Go for a Step-Down EMI Plan
It’s very intelligent to opt for a step-down EMI plan if your repaying capacity is lower than the eligible amount you need to pay monthly. In this EMI plan type the borrower pays a big chunk of money in the early years and then repays the rest with EMI amounts getting lower with time because the principal amount is also decreased.
Pay Partial Payments
In case you have already made multiple EMI payments but are now facing problems in repaying the full amount then you can choose to pay the partial payments, which is the portion of the total outstanding amount. This will result in lower interest rates as well as lower EMI amounts.
Transfer the Amount to New Lender
Consider a balance transfer loan to ease your repaying capacity. In this case, the total outstanding amount is transferred to a new lender which will then charge you the remaining balance. The new lender most probably will grant you a lower interest rate and extended tenure. However, you should remember that the loan processing fees and loan foreclosure fees will be charged to you in the form of interest rates.
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Chose Top-Up Loan
Another way to lower your loan EMI and protect your financial situation is to apply for a top-up loan. So, if you have been making payments on time, then you can ask your lender to grant a top-up loan over your loan. Hence, you can negotiate for a lower interest rate, more money and extended repayment tenure. Also, in some situations lower EMI amounts.
