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  • Tips on How to Free Yourself From EMIs

    EMIs are most definitely a boon to individuals who’ve obtained a home loan. Even minor purchases have the option of paying via EMI. This had made it convenient for the average consumer to make purchases and attain loans. However, it can be a burden as it compromises your monthly income. Below are some tips that will help you free yourself from the seemingly inescapable clutches of Equated Monthly Instalments.

    • Increase EMI Payments – Increasing your EMI will help you pay off your loan ahead of time. Since the tenure of most loans is over a year, it is fair to consider that a loan-holding individual’s salary will increase over the tenure of the loan. This increment is salary can directed towards the repayment of a particular loan by increasing the EMI you usually pay. This will help you close off your loan and waive good riddance to EMIs soon enough.
    • Make Pre-Payments – If you allot any additional income you may receive towards the prepayment of your loan, it will help you pay off the loan faster. Prepaying your loan with a considerable amount will give a loan-holder two options. He/she can either pay the same EMI by reducing the term of the loan, or he can reduce the EMI by keeping the tenure of the loan constant. However, choosing to pay a larger EMI will help you close the loan faster, and will reduce the total interest paid too in some cases.
    • Refinancing Your Loan – Refinancing your loan can help you reduce the tenure of the loan, which in turn helps you save on interest paid. This means that you will be able to pay off the loan faster, helping yDou rid yourself from paying EMIs faster. Not to mention that refinancing your home loan has become hassle free in this day and age of modern technology.
    • Repay your Loan Ahead of Time – This is a no brainer. If you are able to collect enough money to repay the loan, one must prioritise this ahead of other commitments. Repaying your loan will give you additional monthly spending capacity and also will help you save on the total interest payable on a particular loan.

    Although EMIs may seem to be inescapable, especially with loans that are of a longer tenure, it isn’t. Simple financial discipline executed consistently can help you rid yourself of EMIs for good. Following the steps mentioned in this article is a good place to start if you wish to rid yourself from EMIs. Start small with what you have and make the financial commitments as and when you have additional income at your disposal.

      

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