You can save money on your EMI loan using a variety of different forms or tips. From your lending company to modify your loan, some of the ways you can reduce the cost of your loan are mentioned below.

Higher Down Payment

The more money you pay as interest the greater the value of the loan, and the higher the amount of your EMI. It is therefore a wise decision to pay a significant sum as a down payment. This helps you not only reduce the EMI of your loan but also saves you largely in the long term.

Select a Loan with a Longer Repayment Period

When you choose a longer loan term, the total amount owed is spread out over a longer period. This, in turn, decreases the sum due in monthly installments. However, taking a long-term means you will be charged interest on the remaining debt for a longer period.

Go for a Step-Down EMI Plan

When a borrower takes out a loan under this scheme, he or she is required to pay a higher EMI at the start of the term. The EMI amount steadily decreases over time as the principal amount decreases after each monthly payment. This technique will assist in lowering the interest burden in the latter stages of the loan’s duration.

Prioritize loan payments with the highest interest rates

Some loans, such as credit card loans, have significantly high-interest rates. As a consequence, if you have a credit card loan, a personal loan, and a home loan, it is better to pay off the credit card loan first.