Which is best reduce EMI or tenure?

“It is better to reduce tenure if you are comfortable paying the same or a marginally higher EMI. If the home loan rate is reduced by 0.25\% to 10.75\%, the EMI would come down by Rs 848 to Rs 50,671. Now if you can afford to pay the same or a little over the old EMI, you can reduce the tenure of your loan.

Which is better increase EMI or prepayment?

However, most borrowers prefer to get their house debt-free as soon as possible. Partial prepayment is a good way to bring down the loan outstanding sequentially. When interest rate comes down and EMI remains unchanged then the interest part decreases and principal part of EMI increases.

Can I reduce EMI tenure?

Go for tenure extension For instance, if you have 10 years left on your home loan outstanding of Rs 40 lakh at 7.5\%, then extending the tenure to 20 years can help you reduce your EMI by Rs 15,257.

How can I reduce my home loan tenure?

Here are six ways existing home loan borrowers can reduce their EMI amount.

1. Change your interest pricing regimen.
2. Transfer your loan to a new lender.
3. Move from fixed to floating rate.
4. Make partial prepayment and get the EMI adjusted.
5. Go for tenure extension.
6. Use loan restructuring offered by RBI.

Can we decrease home loan tenure?

Process of Changing the Home Loan Tenure. The tenure can be changed voluntarily anytime during the course of the loan. You can visit the branch of the lender and give a request for the same. The concerned official will go through your loan statement and latest income statements before allowing you to change the tenure.

How can we reduce tenure?

If you can, then pay more than the regular EMI. The surplus amount will not only reduce your principal outstanding, but also your interest burden. You can also pay one more EMI (than the usual number of EMIs) every year. This is an effective trick to reduce your loan tenure, and in turn the interest cost.