Borrowers can shorten their loan term using these two ways: by increasing their EMI or by regularly prepaying the loan amount. Axis Bank Personal loan is advantageous since they allow you to repay the loan at a later date. Because it is an unsecured loan, no collateral or security is required to obtain the loan. This is beneficial if you wish to enhance your company’s capital or eliminate unwelcome expenses. However, personal loans also come with longer tenures of upto 6 years and on one wants to have the debt burden for a very long time.
So being debt-free is a good thing. It represents the fact that you are financially conscious of your worth. As a result, if you find yourself in a position to return the debt, you can choose between repaying or foreclosing to shorten the term. In addition, you can also do so by raising the EMI of Axis Bank Personal loan.
Ways to reduce your Axis bank Personal Loan Tenure
Below mentioned are the detailed ways in which you can reduce your loan tenure of axis bank Personal loan.
Increasing your EMI is a good idea.
It’s a good idea to boost your EMIs to match your monthly budget if you’ve obtained a rise in your job or your income has increased. This will help you cut the length of your Axis bank personal loan and, as a result, the interest rate. If you think that you can pay an extra amount rather than your current EMI, opt for increasing your EMI. It will help you to become debt-free sooner.
Prepayment of the debt on a regular basis
If you have enough money to pay in the existing loan amount, you can partially prepay the loan to reduce the remaining debt and interest expenses. When a portion of a loan is paid off, the outstanding loan sum is lowered. It also lowers interest rates and shortens loan terms, allowing you to pay off your debt faster. However, you need to be aware of the prepayment penalty and other charges as most of the banks have some charges and terms and conditions for loan prepayment. Some banks also have the limits of loan prepayments in a year, that is, you can prepay your loan only for a limited number of times in a year.
Consider Taking Out Loans From Your Current Bank
If you’re currently a customer of a particular bank, it’s a good idea to buy a loan from the same institution. This could work to your advantage if you have a good relationship with your bank, in which case they are more likely to offer you a cheaper interest rate on your preferred loan. They can also offer you with your favourable loan tenures.
Negotiate with the bank for shorter tenures and affordable interest rates.
In light of the preceding argument, if the individual has a solid relationship with their bank, they may be able to negotiate a reduced interest rate on the loan. Banks may be willing to do so for their current clients in order to boost brand loyalty and attract new ones.
The Bottom Line
If you want to reduce your Axis Bank Personal Loan tenures, it is important that first of all, you have a strong relationship with your bank and you are in their good books. If the bank sees you as a defaulter, there are less chances of your request getting improved. Secondly, for reducing the loan tenures, you need to afford an increment in your EMI or you can prepay your loan often. For better knowing your EMIs and to get help with the overall EMI calculation, you can use the Axis Bank Personal loan EMI Calculator. This tool will help you to calculate your EMIs according to the outstanding loan amount and your loan tenure. Manual heavy calculations can have errors, because of which you should use this online easy-to-use tool to get more clarity and plan your financial obligations.
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