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How can I reduce Loan EMIs?

By Finserv MARKETS - Feb 5,2019
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How to Reduce Loan EMI

Be it a personal loan, a car loan, business loan or a home loan, each one requires you to pay back the borrowed amount at a predetermined interest rate. Although the loan amount payable remains fixed, your finances may not. There are plenty of reasons attributing to this such as job changes, medical illness, accidents and other factors may negatively impact your finances. If your loan payments are taking a toll on your budget, follow the steps below and you are sure to be on track.

  • Negotiate with Creditors

Honest communication can work wonders! Compile a list of all your lenders and the amount you owe them. Contact each lender and let them know you’re willing to pay the debt in full but can only afford to pay a particular amount each month. If your loan providers are satisfied with the negotiation, they may be willing to lower the interest payment for a period of time. Once you have an agreement with the lender, make sure to get it in writing, preferably on company letterhead, before proceeding.

  • Consolidate your Debt

If you have multiple loans, combining your debt with a debt consolidation personal loan can lower your monthly payments significantly. Calculate the interest rate paid on your current loans and choose a debt consolidation plan which has a lower interest rate. You can get up to 45% lower EMs with a debt consolidation personal loan on Finserv MARKETS!

  • Sign Up for Credit Counselling

At times, credit counselors can help you negotiate lower interest rates and loan payments from creditors. Enrolling under a credit counselor’s debt management plan will help you get lower monthly payments, thereby making it easier to pay off your debt. Additionally, credit counselors can also help you make a budget and teach you the much-needed money management skills.

  • File Bankruptcy

Sometimes, even lowering the loan payments will not be of much help. In such situations, you can consider filing for bankruptcy. You can only file for bankruptcy if your liabilities exceed your total assets. Filing for bankruptcy with the court clears you of any legal obligations to pay back your creditors. However, this measure should only be taken as the last resort because in this case, all your assets will be seized by the court.

You can also get to know about the ways to reduce home loan.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522