Monthly EMI Saving Tips: Does your pocket become empty while paying the installment every month? Can the bank reduce your EMI? How can you reduce your EMI burden every month with the help of the bank? What needs to be done for this?
Loan Reduce EMI Tips: As soon as the salary comes every month, the first EMI is deducted… then it becomes difficult to manage the rent, electricity bill, children’s fees and other expenses. By the end of the month the pocket becomes empty. If you too are troubled while paying the EMI of home loan, car loan or personal loan, then this news is very useful for you. Very few people know that sometimes the bank itself can reduce your EMI burden. There is no need for any jugaad or identification for this, one just has to adopt the right method at the right time. Today we are telling you such easy ways by which your monthly EMI can be reduced and your budget can get some relief.
What is the easiest way to reduce EMI?
If your salary is not the same as before, expenses have increased or several loans are running simultaneously, then you can talk to the bank about loan restructuring or EMI revision. This means the bank can extend the tenure of your loan, which reduces the EMI to be deducted every month. For example, if your EMI is going to be ₹ 18,000, then it may come down after increasing the loan tenure, which can provide relief of a few thousand rupees every month.
When can banks reduce EMI?
If you are going through some kind of trouble, the bank can listen to you. Like your salary has reduced, job has changed, there has been loss in business, more than one loan is going on, medical or family expenses have suddenly increased. Many banks offer the option to reduce EMI in such cases.
What will have to be said to the bank?
Most people make mistakes here. They allow the EMI to get delayed, then penalty continues to be imposed. Instead of doing this, talk to the bank directly and say whether you want to reduce the EMI, increase the loan tenure, can the interest rate be reduced or do you need the option of balance transfer. If your repayment record is good, then the bank can help quickly.
What is balance transfer and how can it provide relief?
If your old loan is running at high interest, you can also transfer it to another bank. Many banks offer loan transfer to new customers at low interest rates. This can reduce EMI, reduce interest burden and save cash every month, but before transfer, definitely check the processing fee and other charges.
5 biggest mistakes of EMI people
- Only save minimum money or pay minimum amount.
- Paying EMI through credit card
- Forgetting the EMI date can lead to late fees and also damage the CIBIL score.
- Take new loans before the old loan expires.
- The biggest mistake is not talking to the bank, because sometimes the bank itself gives the solution.
Understand this before reducing EMI
Lower EMI does not mean that the total amount will be less. If the bank extends the loan tenure, you will definitely get relief every month, but in the long run you may have to pay a little more interest. Therefore, take the decision thoughtfully.