5 Tricks to Reduce Your Monthly EMIs: Insights from Finance Influencer Srishti Gosavi
Finance influencer Srishti Gosavi shares effective tricks to help reduce your monthly EMIs.
5 Tricks to Reduce Your Monthly EMIs: Insights from Finance Influencer Srishti Gosavi
Photo Credit: Srishti Gosavi Instagram
- Srishti Gosavi is a finance influencer
- She shares tricks that helped her reduce EMI's on loan
- Read on and find out the details below
Are monthly EMIs haunting you? Srishti Gosavi, a well-known finance influencer, reveals five practical tricks that helped her lower her EMIs on loans. Read on to discover how you can ease your financial burden and manage your loans more effectively.
1. Improve Your Credit Score: Negotiating Lower Interest Rates
When Srishti's loan was sanctioned, her credit score was 670. After a year of responsible credit card usage, her score increased to 728. She negotiated with her bank and secured a 0.5% interest reduction due to her improved credit score. Regularly monitor and improve your credit score to gain better loan terms.
2. Pay a Conversion Fee: Lowering Interest Rates
Srishti paid a conversion fee of Rs 2500, which is typically 0.5-1% of the outstanding loan amount, to reduce her interest rate by almost 1%. This option allows borrowers to lower the interest rate on their home loans by paying a small fee to the existing bank.
3. Prepay Whenever Possible: Reducing Interest Burden
Prepaying your loan principal whenever possible significantly reduces your EMIs. By reducing the principal amount, the interest burden decreases, leading to lower monthly payments. Make extra payments when you have additional funds to save on interest in the long run.
4. Refinance Your Loan: Switching Lenders for Better Terms
Refinancing your loan can be a great option if your current bank offers high interest rates. Look for a new lender with better terms, but ensure the processing fee is not higher than 0.5%. Refinancing can offer lower interest rates and better loan tenure, easing your EMI burden.
5. Use a Systematic Withdrawal Plan (SWP): Regular Prepayments Through Investments
Srishti used a Systematic Withdrawal Plan (SWP) from her mutual funds to make regular prepayments on her home loan. This strategy allowed her to reduce her EMIs while earning interest on her investments. SWPs provide a steady cash flow for loan prepayments without liquidating the entire investment.
By implementing these five tricks, you can effectively reduce your monthly EMIs and manage your loans better. Follow Srishti Gosavi's advice to improve your financial health and ease the burden of loan repayments. Remember, consistent effort and smart financial decisions can lead to significant savings and lower EMIs.
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Further reading: Srishti Gosavi, Srishti Gosavi finance influencer, Srishti Gosavi finance tricks, Srishti Gosavi finance tips, reduce monthly EMIs, whosthat360