How to Reduce Personal Loan EMI Burden (5 Simple Tips)

Personal loans can help in filling a void in your budget without compromising any of your assets. Personal loans help in meeting financial requirements, which could be emergency related or about achieving your dreams. Lenders can provide personal loans within just a couple of days in a completely paperless manner. However, as a borrower, along with the relief and comfort personal loans give, you may also be living with a bit of burden of repayment. You may wonder how you can reduce the personal loan EMI outflow to get some financial relief.

Here are 5 easy tips in which you can reduce your personal loan EMI:

1. Maximise Your Repayment Tenure

This is one of the best ways of reducing your EMI amount. Opting for a longer repayment tenure on your personal loan reduces your EMI burden. This is because your loan repayment tenure is inversely proportional to the EMI amount of your loan. When you increase your repayment tenure, you repay your loan over a longer duration and hence the EMI amount reduces. However, do keep in mind that since the personal loan interest rate is calculated on a per annum basis, choosing a longer tenure will lead to a higher interest payout over the tenure of the loan.

2. Opt for a Co-Applicant

Adding a co-applicant - like a family member with a good credit score and a stable income can help you reduce your EMI burden.

Must Read: How to Reduce Personal Loan Interest Rate?

3. Look for a Low Interest Rate

Your personal loan rate of interest is one of the most critical factors that affect EMI amount. When you choose a lower rate of interest, you will be reducing your EMI. It would be judicious to negotiate with your lender and read all the fine print, and finalise the best personal loan. Make sure you understand how your interest is being calculated before accepting the loan terms. 

4. Opt for Balance Transfer

If you have a high cost loan, you can opt for refinancing it by taking out a lower cost personal loan. This is called a balance transfer loan, which should be at a lower rate of interest. You could also take out a top-up loan on your high amount loan.

5. Consolidate Your Loans

You could be in a scenario in which you were compelled to borrow from different sources to meet your financial requirements. If you are in a state of multiple EMIs, it can be challenging to keep track of them and repay them. Such a scenario could also give rise to a default of an EMI. That can in turn lead to long term impacts like a drop in your credit score. It would be extremely wise to take a personal loan consolidating all your existing loans. This will tremendously help you in managing your debt and most importantly it will lower your EMI.

SMFG India Credit Personal Loan

SMFG India Credit provides personal loans at attractive interest rates, seamless documentation, and instant personal loan in-principle approvals. This means that within a few minutes of submitting your application online, based on the information provided in the form, you will be informed if your profile matches the eligibility requirements, and if your application will be processed further. Once your documents and other information are successfully verified, the loan amount is approved and then disbursed to your registered bank account. The process is simple and paperless. SMFG India Credit personal loan interest rate starts at 11.99% per annum.

Must Read: Missed Personal Loan EMI? Here's What Will Happen!

SMFG India Credit’s basic personal loan eligibility criteria are - You need to be a salaried individual employed with a private limited company or public sector company and between 21 and 60 years of age. And as a salaried individual, you need to be earning Rs. 25,000 per month if you are in Mumbai or Delhi or Rs. 20,000 monthly if you are residing in the rest of India. 

You can use SMFG India Credit’s personal loan eligibility calculator to estimate the maximum loan amount you can get based on a few key parameters. SMFG India Credit’s eligibility calculator brings efficiency to your financial planning. A Personal loan eligibility calculator allows you to calculate your loan eligibility by entering some basic details. This gives you an estimated loan amount, thereby helping you in an efficient future planning. SMFG India Credit also provides a personal loan EMI calculator. This provides you an EMI amount after entering the loan amount, repayment tenure, and a preferred rate of interest. This assists you in planning your future monthly outflow.