Struggling With Home Loan Repayments? Here are 4 Tips to Help You Decrease Interest Payment on Your Home Loan

A home is probably the best investment that you have ever made. While you take the loan in good spirit and all of the loan’s terms and conditions were laid out by the lender before approving the loan, there are chances that you may find it hard to repay the loan principal and interest on time. In the worst case, you may even lose possession of the property.

Go through this article in its entirety if you want to find the top-4 things that you can do to reduce the home loan EMIburden and how a home loan EMI calculator can be your best friend during times of need.

The Top-4 Tips to Reduce Your Home Loan EMI Burden

1. Transfer Your Existing Balance to a Lender Offering Lower Interest Rates

Many borrowers do not know that they can transfer their existing home loan account, which includes unpaid home loan EMIs, to another lender who is offering a lower interest rate. For example, there are a few reputed lenders whose home loan interest rates start from a lowly 8.60% p.a. Some lenders also offer special EMI holidays and exclusive-interest top-up loans for switch-in customers.

Hence, if you think your existing home loan EMI is more, check thehome loan EMI calculatorof a lender who is offering more attractive rates and shift your account at one stroke of your pen.

2. Prepay the Principal Amount as Frequently as You Can

Although your home loan EMI repayment period starts from the next month from the date of disbursal of home loan, you are required to pay more of the interest during the initial years. The principal repayment starts after you clear off a major part of the interest. However, by prepaying part of your home loan principal at frequent intervals, you can bring down the overall home loan EMI by scaling down the interest component.

You may use a home loan EMI calculator to see the amount you can save in this process.

3. Reduce the Home Loan Tenure

While this may sound weird, especially because you are already struggling to manage the repayment. However, it is prudent to reduce your overall tenure, as it also brings down the interest rate and by clearing off your debt early, you can boost your credit score. A credit score above 750 will ensure that you can take further loans without worrying about approval.

While paying off more may sound overwhelming, it can give you peace of mind.

4. Renegotiate With Your Existing Lender

It is by far the easiest way to decrease your home loan EMIs. As lenders value their customers, they often do not leave any stone unturned to retain their customers. As an informed borrower, you should talk to your lender, and request them to consider your application. Most often, lenders offer you a loan holiday for you to arrange funds. But, remember to start repaying the loan as early as you can, as extending the loan even further may increase the risk of getting served with a legal notice.


Home loanEMIs are designed to make your life smoother. Use a home loan EMI calculatorbefore finalising the loan amount and interest rates. You must check industry-best home loan interest rate before making a decision.

Leave a Comment