How to Reduce Personal Loan Tenure?

Wondering how to reduce tenure of personal loan? Reducing the tenure of a personal loan in India can save you a significant amount in interest payments over the life of the loan. I have shared some effective strategies to shorten your personal loan tenure below.

How can I Reduce the Tenure of My Personal Loan?

• Whenever you have extra funds, consider making a lump sum prepayment towards your loan. This directly reduces the principal amount, thereby reducing the interest and the tenure of the loan.

• If a lump sum payment is not possible, make partial prepayments periodically. Even small amounts can significantly reduce the principal.

• If your financial situation allows, increase the EMI amount. Higher EMIs will reduce the principal faster, thus shortening the loan tenure. Request your lender to adjust the EMIs for the remaining tenure based on the prepayments made.

• Refinancing your loan at a lower interest rate can reduce your EMI burden and shorten the tenure if you maintain the same EMI amount. When refinancing, choose a loan with a shorter tenure if your cash flow allows it.

• Instead of monthly payments, make bi-weekly payments. This results in one extra EMI payment per year, helping you reduce the loan tenure.

• Use any bonuses, increments, or unexpected windfalls to make additional payments towards your loan principal. Consider using tax refunds for loan prepayments.

• Discuss with your lender about the possibility of restructuring your loan to reduce the tenure. Negotiate to waive off any prepayment penalties which might discourage you from making prepayments.

Set up automated payments for your EMI and additional amounts to ensure timely and consistent payments towards your loan. This is how to reduce tenure of personal loan.

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Debt always seems to be a heavy burden so it is okay to have a query about how to reduce personal loan tenure. There are two ways to reduce the loan period: repay the debt amount or negotiate about it with the lender.

How to Reduce Tenure of Personal Loan?

There are two easy ways to reduce the tenure of a personal loan. Here are the-

This is the easiest way to reduce the tenure of your personal loan. You just need to 

• Visit the lender

• Repay the entire debt amount

• Collect documents citing the loan is paid fully

This can also be done online. Banks usually provide loan repayment options on their official website so visit the website and repay the amount there.

If you want to decrease the loan tenure, visit your lender and negotiate with them about the loan tenure. Usually, in such a case, your EMI amount will increase and your loan tenure will decrease. 

So these are the two methods to reduce your personal loan tenure. I hope this was helpful and gave your answer to whether can I reduce the tenure of my personal loan or not. You can also visit the lender and seek more suggestions to decrease your loan tenure.

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