विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
Sayyid
Ramalingam Kalirajan10872 Answers |Ask - Follow
Mutual Funds, Financial Planning Expert - Answered on May 29, 2025
Asked on - May 19, 2025
I have personal loan of 15 lac my emi is 25000 how can i reduce my emi
Ans: Let’s look at your situation professionally. You have a Rs. 15 lakh personal loan. Your EMI is Rs. 25,000. You want to reduce this EMI.
Let us assess the possible 360-degree solutions.
Assess the Loan Terms Again
Know your current interest rate.
Compare it with rates offered by other lenders.
Higher rates mean higher EMIs.
If your rate is above average, it’s time to take action.
Appreciation: You are aware of your EMI and want to reduce it. That’s a great start.
Consider Personal Loan Balance Transfer
You can shift your loan to another lender.
Look for lower interest and better repayment options.
If the new lender charges less interest, your EMI will reduce.
Ensure there is no high transfer fee.
Evaluate loan processing charges and legal costs too.
Get clarity on foreclosure terms and hidden charges.
Compare total outgo before switching.
Increase the Loan Tenure
Longer tenure means smaller EMI.
But you pay more interest in total.
This works if cash flow is tight now.
You can always prepay later when your cash improves.
Check if your bank allows tenure extension mid-loan.
Negotiate With the Current Lender
Ask your bank to reduce interest rate.
Especially if your credit score has improved.
Show a good repayment history.
Banks reward disciplined borrowers.
Request for tenure increase too, if required.
Have a clear talk with your loan officer.
Start Part-Prepayments
Try to pay small amounts regularly.
Even Rs. 20,000 once in a few months helps.
Reduces principal and future interest.
Less interest = smaller EMI later.
Most banks allow part-prepayment without extra charge.
Use bonuses, incentives or any cash inflow.
Analyse Monthly Budget
Track all monthly spending.
Check where money is leaking.
Cut non-essential costs.
Direct those savings to loan prepayment.
Avoid credit card usage unless paid in full monthly.
Review Existing Investments
Are you investing in low-yield options?
Can you pause or reduce some investments temporarily?
Only if your long-term goals don’t suffer.
Shift funds to close high-interest loans early.
Loans drain more wealth than mutual funds earn.
Check for Low Returns from Insurance Plans
If you have LIC, ULIP, or investment-cum-insurance plans, evaluate them.
These may offer poor returns and high charges.
Check the surrender value if they are over 5 years old.
Surrendering now and reinvesting in mutual funds helps.
Use that lump sum to part-pay your loan.
Don’t stop term or health insurance though.
Explore Loans at Lower Rates
Can you take a loan against GPF, PPF, or gold?
These charge lower interest than personal loans.
But use this only if repayment is manageable.
Don’t stretch yourself thin.
Take this route only if disciplined.
Use Windfall Gains Wisely
Did you get a bonus or incentive recently?
Don’t spend it. Use it to part-prepay the loan.
Even small prepayments save future interest.
Prioritise debt over luxury spending.
Wealth grows faster without high-interest loans.
Avoid Taking More Personal Loans
Don’t consolidate loan by taking a bigger one.
Avoid paying one loan with another.
That’s like adding fuel to the fire.
Focus on closing, not shifting endlessly.
Control borrowing habits strictly.
Build an Emergency Reserve
Create a separate emergency fund.
It avoids future loan dependency.
Keep at least 6 months’ expenses ready.
Use bank FD or liquid mutual fund for this.
Don’t mix it with investment money.
Increase Income Sources
Try freelance or part-time work.
Teach, write, consult, or take online projects.
Any Rs. 5,000 extra monthly can help.
Direct this new income to loan EMI or prepayment.
Avoid lifestyle inflation with new earnings.
Consider Mutual Fund SIPs After Loan Closure
Once loan is cleared, shift to SIPs.
Start with equity mutual funds.
Prefer regular plans via Certified Financial Planner.
Direct funds give no advice or review.
Regular plans offer professional guidance and monitoring.
They also ensure goal discipline.
Active mutual funds beat index funds long-term.
Index funds copy the market. They don’t manage risks actively.
In falling markets, they fall equally.
Actively managed funds adapt to conditions.
Have a Debt Closure Goal
Fix a target date to close your loan.
Track the balance every quarter.
Celebrate milestones, like reducing by 25%.
Involve family in the journey.
When all are committed, it becomes easier.
Stay Away from Debt Traps
Don’t take EMI cards or buy now pay later offers.
These lead to impulsive buying.
Save first, spend later.
Buy only what you can pay in cash.
Finally
You have taken the first wise step.
You want to reduce EMI burden.
Combine loan restructuring with disciplined savings.
Focus on repayment, not more debt.
Every part-prepayment is a step to freedom.
With focus, patience, and planning, you will succeed.
Keep your financial life simple and clear.
Live below your means till loans are over.
Take help from a Certified Financial Planner if needed.
That will give you more clarity and confidence.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
(more)
Let us assess the possible 360-degree solutions.
Assess the Loan Terms Again
Know your current interest rate.
Compare it with rates offered by other lenders.
Higher rates mean higher EMIs.
If your rate is above average, it’s time to take action.
Appreciation: You are aware of your EMI and want to reduce it. That’s a great start.
Consider Personal Loan Balance Transfer
You can shift your loan to another lender.
Look for lower interest and better repayment options.
If the new lender charges less interest, your EMI will reduce.
Ensure there is no high transfer fee.
Evaluate loan processing charges and legal costs too.
Get clarity on foreclosure terms and hidden charges.
Compare total outgo before switching.
Increase the Loan Tenure
Longer tenure means smaller EMI.
But you pay more interest in total.
This works if cash flow is tight now.
You can always prepay later when your cash improves.
Check if your bank allows tenure extension mid-loan.
Negotiate With the Current Lender
Ask your bank to reduce interest rate.
Especially if your credit score has improved.
Show a good repayment history.
Banks reward disciplined borrowers.
Request for tenure increase too, if required.
Have a clear talk with your loan officer.
Start Part-Prepayments
Try to pay small amounts regularly.
Even Rs. 20,000 once in a few months helps.
Reduces principal and future interest.
Less interest = smaller EMI later.
Most banks allow part-prepayment without extra charge.
Use bonuses, incentives or any cash inflow.
Analyse Monthly Budget
Track all monthly spending.
Check where money is leaking.
Cut non-essential costs.
Direct those savings to loan prepayment.
Avoid credit card usage unless paid in full monthly.
Review Existing Investments
Are you investing in low-yield options?
Can you pause or reduce some investments temporarily?
Only if your long-term goals don’t suffer.
Shift funds to close high-interest loans early.
Loans drain more wealth than mutual funds earn.
Check for Low Returns from Insurance Plans
If you have LIC, ULIP, or investment-cum-insurance plans, evaluate them.
These may offer poor returns and high charges.
Check the surrender value if they are over 5 years old.
Surrendering now and reinvesting in mutual funds helps.
Use that lump sum to part-pay your loan.
Don’t stop term or health insurance though.
Explore Loans at Lower Rates
Can you take a loan against GPF, PPF, or gold?
These charge lower interest than personal loans.
But use this only if repayment is manageable.
Don’t stretch yourself thin.
Take this route only if disciplined.
Use Windfall Gains Wisely
Did you get a bonus or incentive recently?
Don’t spend it. Use it to part-prepay the loan.
Even small prepayments save future interest.
Prioritise debt over luxury spending.
Wealth grows faster without high-interest loans.
Avoid Taking More Personal Loans
Don’t consolidate loan by taking a bigger one.
Avoid paying one loan with another.
That’s like adding fuel to the fire.
Focus on closing, not shifting endlessly.
Control borrowing habits strictly.
Build an Emergency Reserve
Create a separate emergency fund.
It avoids future loan dependency.
Keep at least 6 months’ expenses ready.
Use bank FD or liquid mutual fund for this.
Don’t mix it with investment money.
Increase Income Sources
Try freelance or part-time work.
Teach, write, consult, or take online projects.
Any Rs. 5,000 extra monthly can help.
Direct this new income to loan EMI or prepayment.
Avoid lifestyle inflation with new earnings.
Consider Mutual Fund SIPs After Loan Closure
Once loan is cleared, shift to SIPs.
Start with equity mutual funds.
Prefer regular plans via Certified Financial Planner.
Direct funds give no advice or review.
Regular plans offer professional guidance and monitoring.
They also ensure goal discipline.
Active mutual funds beat index funds long-term.
Index funds copy the market. They don’t manage risks actively.
In falling markets, they fall equally.
Actively managed funds adapt to conditions.
Have a Debt Closure Goal
Fix a target date to close your loan.
Track the balance every quarter.
Celebrate milestones, like reducing by 25%.
Involve family in the journey.
When all are committed, it becomes easier.
Stay Away from Debt Traps
Don’t take EMI cards or buy now pay later offers.
These lead to impulsive buying.
Save first, spend later.
Buy only what you can pay in cash.
Finally
You have taken the first wise step.
You want to reduce EMI burden.
Combine loan restructuring with disciplined savings.
Focus on repayment, not more debt.
Every part-prepayment is a step to freedom.
With focus, patience, and planning, you will succeed.
Keep your financial life simple and clear.
Live below your means till loans are over.
Take help from a Certified Financial Planner if needed.
That will give you more clarity and confidence.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment