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8 Ways to Reduce Personal Loan EMIs
Reviewed by: Sudesh Shetty
- Updated on: 15 Sep 2025
Reviewed by: Sudesh Shetty
The EMI for personal loan repayment is a figure that can either put a strain on your finances or help you repay stress-free. Since it has a large impact on your monthly budget, choosing the lowest possible EMI can be helpful. You can then have funds at hand to address other goals and obligations as well as to build an emergency corpus.
While you can check your personal loan instalment beforehand using an EMI calculator, paying a minimal amount hinges on certain factors you can watch for. If you’re wondering how to reduce EMI of existing personal loan? You can use some simple strategies like never missing an EMI, opting for a longer repayment tenure or even negotiating a lower interest.
Lowering your monthly repayment amount and paying off your loan comfortably is easy. Try out these strategies.
Borrowing less is the easiest way to reduce your EMIs as this amount is based on your loan’s principal. See the table below to check out how the EMI reduces when the loan amount varies while keeping the interest and tenure the same:
| Loan amount | Interest | Tenure | EMI |
|---|---|---|---|
| ₹2,29,000 | 14% | 12 months | ₹20,561 |
| ₹1,82,000 | 14% | 12 months | ₹16,341 |
| ₹1,36,000 | 14% | 12 months | ₹12,211 |
Apply the same logic to your existing loan by lowering your loan amount with partial prepayments. If you have surplus funds and are wondering, ‘Can I reduce my personal loan EMI?’, the answer is yes!
You can chip away at the loan’s principal by paying more than your monthly instalment. This will reduce your subsequent instalments and also help you reduce the interest you pay. Do consider the charges and conditions that financial companies may have in place before you plan prepayment.
Apart from the loan amount, the interest rate also affects your EMI. By transferring your remaining loan to another financial company, you can enjoy lower rate. Take a look at how EMIs are affected when only in the rate reduces and the tenure and principal is the same:
| Loan amount | Interest | Tenure | EMI |
|---|---|---|---|
| ₹2,00,000 | 20% | 12 months | ₹18,527 |
| ₹2,00,000 | 16% | 12 months | ₹18,146 |
| ₹2,00,000 | 14% | 12 months | ₹17,957 |
| ₹2,00,000 | 12% | 12 months | ₹17,770 |
Before you go ahead and transfer your personal loan balance, consider the new lender’s charges and terms:
This way, you can ensure that transferring the balance to a new lender is the right decision when exploring how to reduce personal loan EMIs.
Increasing the repayment timeline also helps you reduce your instalment. See how the EMI changes when the tenure changes, keeping all else constant:
| Loan amount | Interest | Tenure | EMI |
|---|---|---|---|
| ₹2,30,000 | 14% | 3 months | ₹78,462 |
| ₹2,30,000 | 14% | 9 months | ₹27,069 |
| ₹2,30,000 | 14% | 18 months | ₹14,240 |
| ₹2,30,000 | 14% | 36 months | ₹7,861 |
You can ask your existing lender to extend the timeline or switch to a new lender to decrease your EMI. For those asking can we reduce EMI of personal loan without prepayments, this is one of the simplest methods.
One of the best solutions to how to lower EMI of personal loan is by reducing the interest rate. A mere cut of 1–2% will bring enormous savings in your entire tenure. Here’s how you can lower your rate of interest:
By lowering the rate, you are lowering the instalments directly, which makes repayment easier on your budget each month.
If you are inquiring whether we can lower EMI of personal loan without reducing the loan amount or tenure, then enhancing your credit score is a good idea. A high score not only makes you a more reliable borrower to lenders but also assists you in getting lower interest rates. To enhance your score:
In the long run, a more robust credit history can make you eligible for more favorable loan terms and reduce your personal loan EMIs.
Another easy technique of how to minimise EMI of existing personal loan is to utilise any extra income in part-prepayment. If you get bonuses, incentives, tax refund, or freelance income, applying them toward your loan will minimise the running balance. This implies:
Before prepaying, verify your lender’s policies whether they are charging or not. A single prepayment during the course of your loan can simplify repayment immensely.
Paying your EMIs after the due date adds to your liability, as you will have to pay penalties for late payments. Delayed payments also affect your creditworthiness, which can make future borrowings more expensive.
It can also have a negative impact on your request for a lower rate or a longer tenure. So, ensure you pay every EMI for a personal loan on time. Set up auto payments or reminders to avoid missing the due date.
The above tips can help if you’re wondering how to reduce EMI of personal loan in a practical way. But if you want to have manageable EMIs from the start, use an EMI calculator before applying for an instant loan.
Use an EMI calculator to plan repayment of your personal loan better. This simple online tool gives you an estimate of your repayment instalment based on your loan terms. You can adjust the loan amount and tenure to reach a suitable combination where your EMI fits your budget. Learning how to manage loan EMI for new or ongoing personal loans is key to keeping repayment within your budget.
Simply use the Fibe EMI calculator to know your ideal tenure and amount for stress-free repayment. Apply in just a few clicks by downloading our Personal Loan App or registering on our website.
Get a Fibe Personal Loan. We offer funding of up to ₹5 lakhs with attractive interest rates and repayment tenures going up to 36 months. What’s more, you can prepay at no charge!
With the right financial planning and making partial prepayments, you can easily reduce your personal loan EMIs. In addition, if you have a good credit score, you can request your lender increase your tenure for a more suitable EMI.
Absolutely. Making prepayments reduces the principal amount, which can help reduce your personal loan EMIs.
Yes. You can request your lender to reduce your loan tenure. However, it is important to understand that reducing your tenure will increase your EMI for a personal loan. You can use an EMI calculator to know the ideal tenure and ensure the instalment amount fits your budget.
