Should i reduce emi or tenure

Door No. Have any queries? Click here for more details. Loan duration and EMI are the two important factors that determine your debt burden. When you take any loan, these two factors are fixed up front before the approval. Based on your acknowledgement, the loan amount is disbursed after agreeing to the terms and conditions. If the EMI amount is higher, the loan tenure may be lower and if you have low EMI amount, the tenure may be longer depending on the loan amount.

Reducing the EMI amount works best for you if you have too many debts and are unable to manage the repayment with the current income. You may approach the lender to reduce the EMI which will in turn increase the loan duration.

Although you are likely to enjoy a lesser repayment, the debt will last longer with additional payment towards interest.

Reducing loan duration works certainly best for you especially when you look forward to clearing the loan faster. This monthly savings in EMI is then accumulated. One the accumulated saving becomes big enough, make a lump-sum prepayment again. No doubt this will also save money, but there are too many steps involved here. This will save maximum. This will also save money but as as much as 1 above. I was thinking to increase EMI from 35k to 40k.

Your response concludes to me: I do not have lump-sum at the moment. No need to think keeping EMI constant 35K wait for accumulating savings for nearest months. In the case of tenure reduction, why is that you do not consider the EMIs saved as part of the reduced tenure as having potentially invested into a SIP and generating some additional profit as well?

Your email address will not be published. Which is better: home loan prepayment to reduce EMI or tenure? MANI 7 min read 20 Comments. This is what we will discuss in this article. Check Here. Whether to Invest or Avoid? Stock Analysis. Investment Basics. TMM at pm. Vinay Joshi at am. MANI[sh] at am. Thank you for posting your views. Pranshu at pm. I have one more query — I have taken the loan of Rs. Mani at pm. Kiran at am. Mani at am. If objective is to clear the loan, tenure reduction is a better option.

Pradeep at pm. Jagadeesh at pm. Rajan S at am. Hi Mani, Thanks for the detailed information. Person X has a similar scenario which was asked before but with small differences. Please consider the below scenario: E. ET Secure IT. Tax How to file ITR. Tax Saving.

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