Reduce your Home Loan EMI with these Proven Methods?

Reduce your Home Loan EMI with these Proven Methods

Home loans are the best source of funding when one wishes to buy their dream home. Considering the prices of properties touching the skies, it is evident that the money required is huge. Being a secured loan, the applicants can avail a bigger loan amount without much hassle. But the main hindrance begins when one starts to repay the loan. The hefty EMIs can be burdensome over a course of time as it takes around 30 to 40 per cent of your monthly income. Thus, to lower the burden and make the home loan repayment easier, one should strive to reduce the monthly EMI.

Here are some prospective ways of reducing your home loan EMI.

  • Opt for lower interest rate deal on home loans
    The rate of interest shall be the deciding factor when it comes to opting for a home loan. A lower interest rate culminates into lower EMI and you also save some money by the end of the loan tenure which would otherwise have gone as interest on the borrowed loan amount. Thus, before you zero in on the lender, look around and do proper research in the market on the offerings of various home loan providers in terms of interest rate, processing charges, penalties etc and based on that make an informed choice. LoansJagat helps you to grab the best low-interest rate deal on its comparative platform. Even a slight difference in the interest rate goes on a long way to reduce the monthly EMI and lower your home loan cost.

Read More: How to verify Indian Property and Land Records online?

  • Pay more as the down payment

One doesn’t usually get a 100 per cent home loan for the property. The borrower is liable to pay some amount initially as down payment and the rest is paid by the lender. If you pay a higher amount as the down payment from your end, the principal loan amount will decrease and your monthly instalment will get reduced too. Let’s suppose that you wish to buy a property priced at Rs. 1 crore. And if you put 20 lakhs as down payment, then you will be charged interest on the remaining amount i.e. on Rs.80 lakhs only and the EMI will be calculated for this amount.

  • Try for pre-payment of the loan amount
    Pre-payment of a loan refers to depositing a sum into the loan account to reduce the principal amount on which the interest will be charged. This will automatically result in a reduction of the EMI as the principal amount gets reduced. It is thus advisable to judiciously use the funds which one receives as a bonus, investment returns, savings, payments etc.
  • Home loan  balance transfer
    If you have already enrolled yourself with a certain lender and have repaid for at least a year of loan tenure, then you can opt for a home loan balance transfer. It is a great opportunity wherein the borrower can transfer his home loan from their current lender charging a higher rate of interest to a new lender offering a better deal. The switch may incur some charges like foreclosure charges and processing charges and it is thus advisable to do the requisite calculations prior to opting for it. As the interest rate decreases with the switch, the EMI amount is also liable to get reduced thereby lowering your total home loan cost.
  • Opt for a longer repayment tenure
    If your main focus is on reducing your home loan EMI, then you can opt for a longer repayment tenure. However, this would mean a large amount going as an interest to the lender. And if this is something which you can afford, then you can choose a longer loan tenure.


LoansJagat is the go-to platform for availing the best possible deal in the lending sector. Home loan for salaried or a home loan for self-employed, both can be availed at a click of a button by simply adding your credentials on our website. Based upon the same and your eligibility, we will present you the best home loan providers matching your profile. You can compare and choose the most suitable lender offering the lowest interest rate deal. Our EMI calculator helps you to accurately calculate the home loan EMI which you can pay comfortably.

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