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How to Reduce EMI on Existing Personal Loan: Strategies for More Affordable Repayment

Managing personal loan EMI payments can sometimes be a financial challenge. However, with the right strategies and guidance, you can make your EMI payments more affordable and ease the burden on your monthly budget.

Let us understand how to reduce the EMI on an existing personal loan so that you can take control of your finances and achieve absolute financial freedom.

  1. Refinance or Consolidate Your Loan:

    One strategy to reduce the EMI of your existing personal loan is to consider refinancing or loan consolidation. By refinancing your loan at a lower interest rate, you can achieve a reduced EMI amount. By consolidating multiple loans into a single loan with Finnable, you can also simplify your repayment process and potentially secure a lower EMI.

  2. Negotiate with Your Lender:

    Do not hesitate to have a conversation with your lender to discuss the possibility of reducing your EMI amount. Explain your financial situation and request a revision of the loan terms. Finnable understands that circumstances change, and we may be willing to accommodate your request by adjusting the tenure or interest rate, thereby reducing your EMI burden.

  3. Make Partial Prepayments:

    Consider making partial prepayments towards your personal loan whenever you have surplus funds. By making additional payments, you can reduce the principal amount and potentially shorten the loan tenure. Finnable allows for partial prepayments, enabling you to lower your EMI amount and save on interest payments in the long run. Contact us by visiting our website for more information on our prepayment policies.

  4. Go for Finnable’s Reducing Interest on Personal Loan

    Finnable offers the facility of reducing EMI, whereby, as your principal balance decreases with every EMI payment, your next EMI is calculated on the reduced loan amount. This makes it easy for you to pay off your personal loan without worrying about increasing financial commitments. Now, that is a recipe for full-fledged financial success.

  5. Opt for a Longer Loan Tenure:

    While it may seem counterintuitive, extending the tenure of your personal loan is how you can reduce the EMI amount of your personal loan. Finnable provides flexible loan tenure options, allowing you to select a longer repayment period. Although this may result in paying more interest over time, it can significantly lower your monthly EMI burden, making it more manageable for your current financial situation.

  6. Improve Your Credit Score:

    A good credit score can work in your favour when reducing your EMI amount on a personal loan. By maintaining a positive credit history and improving your credit score, you become a more creditworthy borrower. Finnable considers your credit score when determining loan terms, and a higher score may enable you to negotiate a lower interest rate, ultimately reducing your EMI.

  7. Trim Your Expenses:

    Take a close look at your monthly expenses and identify areas where you can make cuts or adjustments. By adopting a frugal mindset and prioritising your financial goals, you can free up funds to put towards your EMI repayments. Cut back on discretionary expenses, find ways to save on utilities and subscriptions, and embrace a budget-conscious lifestyle to reduce financial strain.

  8. Seek Financial Guidance:

    Finnable is more than just a loan provider. We also offer personalised financial guidance to help you navigate your loan repayment journey. Our team of experts can provide valuable insights and tailor-made strategies to reduce your EMI amount and achieve financial stability. Reach out to Finnable for assistance and explore the wealth of knowledge they have to offer.

Key Takeaways

Reducing the EMI of your existing personal loan is possible with the right strategies and support from Finnable.  Now that you know how to reduce the EMI on your personal loan, you explore options such as refinancing, loan consolidation, partial prepayments, and negotiating with your lender. Additionally, focus on improving your credit score and managing your expenses wisely. Remember, Finnable is here to guide you through the process, offering personalised solutions and exceptional services to make your EMI repayments more affordable. Take control of your finances and pave the way to a brighter financial future with Finnable by your side.

Frequently Asked Questions (FAQs):

Yes. Using techniques such as refinancing, debt consolidation, and part payments, you can reduce the EMI on your personal loan.

Finnable offers various options such as reducing EMI facility, loan consolidation, and prepayment facilities that can help reduce your EMI amount.

Finnable offers personal loan interest rates of between 16-26%, which is around only 1.3 to 2.3% every month.

Yes, you can track the status of your Finnable personal loan, including the next EMI and remaining balance, on the Finnable android app.

Finnable charges nominal processing fees of 4% on personal loans.

Amit Arora Finnable

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.
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