What Steps Can You Take To Lower Your Home Loan EMI Payments?

It is not always simple for individuals to accumulate savings in times of rising inflation. The rising cost of necessities forces us to spend more on our daily expenses. A loan is also an additional expense, given the interest charged by banks on the EMI payable.

A home loan is most likely the most sizable debt a person undertakes in their lifetime. Additionally, it is the loan with the longest term. Your home loan repayment may become significantly more expensive if the interest rate is greater. The amount of your EMI increases automatically as the rate of interest rises. As a result, the majority of home loan holders are constantly looking for strategies to lower their EMI. You can calculate your loan EMI using the home loan emi calculator available on different platforms. 

Ways to Reduce Your Home Loan EMI

Higher Down Payment

The down payment is the money that the customers pay upfront when buying the house. Since the person pays a portion of the entire cost of the house, the amount that the customer must borrow as a loan is reduced. The interest on a loan is computed depending on the principal sum borrowed by the consumer. As a result, your interest payments and monthly installment amount will increase as the loan amount increases. Therefore, making a good amount of down payment is the best choice. This will not only enable you to lower your loan’s EMI, but it will also enable you to make significant long-term savings.

Longer Tenure

One of the key elements that affect how much interest you will pay on your loan amount is the term of the home loan. Most of the time, consumers extend the term of their home loans to lower their monthly EMI payments, but in the long run, this results in higher interest costs. So, before extending the term of your loan, you should be extremely careful and carefully assess the benefits and drawbacks of doing so. Choose your loan term wisely, so you don’t wind up paying more interest on your principal. You can calculate the EMI you have to pay using the home loan emi calculator


Most banks and NBFCs do not charge prepayment or loan foreclosure fees on home loans with a floating interest rate. Therefore, you should try to make prepayments anytime your financial situation allows if your home loan has a floating interest rate. During the first few years, a bigger portion of your home loan EMI is used to pay interest, and the remaining portion is used to pay down the outstanding amount. Frequent prepayments will significantly lower the principal amount of the loan, which lowers the total amount of interest that must be paid.

Transfer for a Lower Interest Rate

You can transfer your home loan to another bank or lender. If your bank or lender charges a higher interest rate than the other bank or lender, then you can transfer the remaining amount to another bank. However, there are file transfer fees involved, and your present lender must provide their consent before you may move the remaining loan sum to another lender.

Step-Down EMI Plan

A Step-Down EMI Plan is an option that many banks and other financial service providers offer to their consumers. According to this plan, the borrower who accepts a home loan must pay a higher EMI at the beginning of the repayment period. The principal amount is reduced consistently after each monthly payment, which causes the EMI cost to drop over time gradually. In the latter stages of the loan term, this strategy may lessen the burden of interest payments.


A home loan is one of the greatest financial decisions you will ever make, so you shouldn’t take it easy. Several factors play an important role when it comes to the monthly installments of your loan. The home loan interest rate is one of the major factors that determine your EMI for the loan. To help you easily determine how much of your monthly home loan payment would be your EMI, the internet has introduced a home loan EMI calculator. Thus, you can change the loan’s term and determine the EMI that must be paid.

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