Want To Take A Personal Loan But Are Afraid Of EMI Burden? Follow These Easy Tips – News18

Both personal loans and home loans have become a common phenomenon in today’s World. Personal loans are applied for when there is an urgent need for money. A personal loan is also useful in any kind of health emergency. However, to avoid putting too much strain on your finances, one also needs to take care of loan repayments. Let us inform you how one can get a personal loan with a low EMI.

Many a time, due to the high amount of EMI, a person’s financial budget gets disturbed. So, people feel stressed about somehow finding an option to reduce the EMI burden. You can reduce the burden of your EMI in the following ways. Take a look.

1. Compare interest and other charges before taking the loan:

Before taking a personal loan or a home loan, compare the interest rates of various banks and non-banking financial institutions (NBFCs). Also, see what kind of charges they are charging you, including processing. Nowadays, various websites allow you to compare the interest and charges, so check those before opting to take any loan.

2. Borrow as much as you need:

While taking a personal loan, first calculate how much you need to solve the emergency. As one needs to take a loan as per their requirements. So, analyze your financial position and do the necessary calculations to achieve your goal. Borrowing more can lead to higher EMIs and unnecessary interest payments.

3. Take the support of prepayment and part payment:

If you have taken a personal loan or home loan and want to eliminate or reduce the burden of its EMI, then the best way is prepayment and part-payment. The less time you take to make the prepayment, the more you will benefit.

Pre-payment is a service provided by some banks that allow borrowers to repay their loans before the actual repayment period specified in the loan agreements.

Part-payment signifies that you want to repay a major portion of your debt to the lending institution all at once. The maximum interest is charged in the initial years of both of these loans. If the personal loan is for 3 years and you make a part-payment in the first year itself by saving some money, then your EMI will come down and the interest payment will also come down.