There are several ways to reduce the EMI (Equated Monthly Installment) of a personal loan:
1. Choose a Longer Repayment Tenure: A longer repayment tenure will result in smaller EMIs. However, keep in mind that a longer tenure will result in paying more interest overall.
2. Negotiate for Lower Interest Rates: Negotiating with your lender for a lower interest rate could help reduce your EMI. This is especially true if you have a good credit score and a steady income.
3. Make a Larger Down Payment: Making a larger down payment can reduce the amount of the loan and, in turn, reduce the EMI.
4. Consider Balance Transfer: If you have an existing personal loan with a high EMI, you could consider transferring the balance to a new lender who offers a lower interest rate and EMI.
5. Opt for Prepayment: Prepaying your loan can also help to reduce the EMI. This means paying off a larger amount than what is due every month. However, some lenders may charge a prepayment penalty.
It’s important to consider the impact of each option before making a decision. Ensure you evaluate the pros and cons of each approach, and assess the impact on your overall financial situation before you proceed.