You can save money by reducing the EMI of personal loan, know these easy ways

Updated: 25-06-2025, 02.54 AM

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Many times a personal loan has to be taken for financial needs, but a huge equal monthly installment (EMI) has to be paid with every interest. This affects your monthly budget. A loan -taking person can take many sensible and strategic steps to reduce EMI, resulting in improving their finance and increasing flexibility in their budget. Today we are telling you 5 ways to reduce loan EMI.

Interest will be saved in this way

Balance transfer: Transferring your outstanding loan to a loan -giving financial institution at any other bank or low interest can help reduce EMI payment a lot.
Extending loan duration: You can reduce the monthly EMI by extending your repayment period, although it can increase the total interest.
Partial payment of principal: In between, depositing the money of savings in the form of principal also gives advantage in it.

Step-down plan

Step-down plan will also benefit

Step-down EMI Plan: Choosing step-down plan is another very effective way to reduce EMI. Banks like HDFC, Kotak Mahindra, ICICI offer options. Under this, more installments are given in the beginning, which gradually decrease gradually.
Debt consolidation or top-up: Many small loans can be consolidated by taking a personal loan with a low interest rate and extended period. This reduces the monthly installment.