Home Loan EMI Management Strategies for Financial Success

A home loan is often the most substantial financial commitment one undertakes in their lifetime. Managing the Equated Monthly Instalments (EMIs) efficiently is crucial to ensure a stress-free homeownership experience. Fortunately, there are various ways to manage your home loan EMIs effectively. In this blog, we will explore different strategies and methods that can help you keep your home loan EMIs under control while securing your financial stability.

  1. Make Prepayments:

Whenever you have surplus funds, consider making prepayments towards your home loan. Even small additional payments can reduce the principal amount and subsequently lower your EMIs or shorten the loan tenure. Let us understand how EMI prepayments are beneficial with the help of the following table:

Loan amountInterest rateTenureEMIPrepaymentReduced principalReduced tenure
₹10 lakh8%10 years₹10,277₹2 lakh₹8 lakh7.7 years
₹10 lakh8%10 years₹10,277₹5 lakh₹5 lakh5 years
₹10 lakh8%10 years₹10,277₹10 lakh₹00 years

This table shows how prepayment can reduce the loan principal amount and tenure for a ₹10 lakh loan at an interest rate of 8% for a tenure of 10 years. As you can see, a prepayment of ₹2 lakh reduces the loan principal amount to ₹8 lakhs and the tenure to 7.7 years. Furthermore, a prepayment of ₹5 lakh reduces the loan principal amount to ₹5 lakhs and the tenure to 5 years and a prepayment of ₹10 lakh reduces the loan principal amount to ₹0 and the tenure to 0 years, meaning that the loan is paid off completely.

Moreover, EMI prepayment can also reduce the interest accrued on the pending principal amount by reducing the principal itself. 

  1. Refinance Your Loan:

Keep an eye on market interest rates. If they have dropped significantly since you took your home loan, consider refinancing. A lower interest rate can result in lower EMIs.

  1. Utilize the EMI Step-Up Scheme:

Some banks offer the EMI Step-Up scheme, where you start with lower EMIs and gradually increase them over time, aligning with your expected income growth.

YearMonthly SalaryEMIRemaining principal
1₹50,000₹10,000₹9.5 lakh
5₹75,000₹14,641₹7.5 lakh
10₹120,000₹23,548₹5 lakh
15₹180,000₹37,318₹2.5 lakh

In this table, as your salary increases, your EMI payment through the start-up scheme also increases to stay at approximately 20% of your monthly income. This helps you pay off your home loan sooner without facing financial burdens in the initial years.

  1. Opt for EMI Moratorium or Holiday Period:

In certain situations, banks may allow you to take a temporary break from paying EMIs, known as an EMI moratorium or holiday period. This can provide financial relief during emergencies.

  1. Create an EMI Reserve Fund:

Build an emergency fund specifically designated for paying EMIs in case of unexpected financial setbacks. This can act as a safety net and prevent defaults.

  1. Choose a Suitable EMI Payment Date:

Coordinate your EMI payment date with your salary date to ensure that you have sufficient funds in your account. Late payments can result in penalties and negatively impact your credit score.

  1. Opt for a Longer Loan Tenure:

Extending the loan tenure can significantly reduce your monthly EMIs. While this may lead to paying more interest in the long run, it can provide short-term relief to your monthly budget.

  1. Invest Wisely:

Invest your savings intelligently to generate additional income that can help cover your EMIs. Consult a financial advisor for suitable investment options.


Managing your home loan EMIs doesn’t have to be a daunting task. By adopting these different strategies and methods, you can take control of your finances, reduce the stress associated with loan repayment, and work towards the goal of homeownership with confidence and ease. 

Ensure you are periodically reviewing your home loan to identify opportunities for optimization. Accordingly, you can consider switching to a more favorable scheme or lender if it benefits you financially. Remember that each individual’s financial situation is unique, so it’s essential to choose the approaches that align with your specific needs and goals.


Frequently Asked Questions (FAQs):

Finnable has set a required minimum age for personal loan of 21 years for individuals to be eligible for a personal loan. This ensures that applicants have reached legal adulthood and are capable of entering into a financial agreement.

Yes, Finnable understands the financial needs of young borrowers and offers personalised loan options tailored to their specific requirements. Whether it's financing higher education, purchasing essential items, or starting a business venture, Finnable provides support to young individuals seeking financial assistance.

Borrowers nearing retirement may have unique financial needs, such as retirement planning, medical expenses, or supporting their children's education. Finnable offers personalised loan solutions that consider the specific circumstances of pre-retirement individuals, helping them meet their financial goals.

Unfortunately, no. Finnable does not, at the moment, offer any loans to senior citizens. Currently, 60 is the maximum age for personal loans set by Finnable

Other than personal loan age limits, Finnable considers various other factors for determining loan eligibility. These factors may include the applicant's income, credit score, repayment capacity, and employment stability. By assessing these aspects comprehensively, Finnable ensures that borrowers across different age groups can access the loan products that best suit their financial needs. 


Amit Arora

I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
Finnable Logo