A personal loan is an unsecured loan (no collateral required) offered by banks or Non-Banking Financial Companies (NBFCs) to individuals for personal use. You can use it for various purposes – e.g. consolidating debt, home renovations, medical expenses, travel, etc. – without needing to specify a single purpose. Approval is based on criteria like your income, credit history, and repayment capacity rather than any asset.

The personal loan process typically involves a few key steps:

1. Application – you apply by filling a form (online or in-person) and providing required documents.
2. Documentation & Verification – the lender verifies your identity, income, credit score, and other details from the documents and credit bureau reports.
3. Approval – if you meet the lender’s criteria, the loan is approved with a specified limit, interest rate, and tenure.
4. Disbursement – the approved loan amount is disbursed (credited) to your bank account in a lump sum.
5. Repayment – you repay the loan in equated monthly instalments (EMIs) over the chosen tenure until the loan is fully paid off.

You can use a personal loan for almost any personal expense – they are multi-purpose loans. Common uses include buying consumer durables or appliances, home improvement projects, weddings or other large events, travel or luxury vacations, medical emergencies, education or skill development, and debt consolidation (paying off high-interest debts like credit cards). There are typically no restrictions from the lender on the end use, as long as it’s for legitimate purposes. Essentially, a personal loan gives you the flexibility to fund any immediate financial need without having to pledge an asset.

No. Personal loans are usually unsecured, meaning you do not have to provide any collateral (security) or guarantor. Unlike a home or auto loan, you don’t pledge an asset for a personal loan – approval is based on your income and creditworthiness. In most cases, you alone sign for the loan. Only in rare circumstances (e.g. very low credit score or unusual profile) might a lender ask for a guarantor or security, but this is not common for standard personal loans.

A loan on a credit card (also called a credit card loan or insta loan) is typically a pre-approved loan that your credit card issuer offers based on your card usage and limit. It is usually restricted to existing card customers and often simply converts part of your credit limit into a loan. In contrast, a personal loan can be obtained from any bank/NBFC of your choice – not only your card issuer – and usually requires a separate application and documentation. Both are unsecured and may have similar tenure options, but credit card loans often have higher interest rates and are only available if you have a credit card with that bank. Also, getting a loan on a credit card doesn’t require additional paperwork (since the bank already has your details), whereas a personal loan application will require standard documents.

The key difference is that a home loan or car loan is secured by the asset (house or car) you’re purchasing, whereas a personal loan is unsecured (no collateral). This leads to several practical differences:

• Interest rates – personal loans typically carry higher interest rates than home or auto loans because they are unsecured (current personal loan rates ~10–24% p.a., versus home loans ~7–9% p.a.).
• Usage – home/car loans can only be used to buy that specific asset, while a personal loan can be used for any purpose.
• Tenure – home loans can run 15–30 years, car loans around 5–7 years, but personal loans generally have shorter tenures (1–5 years).
• Loan amount – for home loans, the property’s value determines the amount, whereas for personal loans your income and credit profile determine the maximum.

In summary, personal loans offer flexibility in usage but at a higher cost, whereas home or auto loans are cheaper but tied to purchasing that asset (and the asset can be repossessed if you default).

To be eligible, you must generally have a regular income (either salaried or self-employed) and fall within the lender’s age range. Lenders look for stability in income/employment and a decent credit history. In practice, if you are an adult (usually 21–60 years old) with a steady job or business and a reasonable credit score (see next question), you stand a good chance of being eligible. Each bank/NBFC has specific criteria, but broadly any working professional or business owner with sufficient income to repay can be eligible. If you are unsure, you can check personal loan eligibility calculators online by inputting your income, expenses, etc., to see if you qualify.

Most lenders look for a CIBIL/credit score of 750 or above for comfortable approval. A higher score (closer to 900) is ideal and will help you get better interest rates as well. If your score is below ~700, many banks may hesitate or charge higher interest, though some NBFCs might still lend with additional conditions. According to CIBIL data, loan approvals are much more likely when the score is >750. In short, while there’s no universal “hard cutoff,” a score 750+ is considered good for personal loans, 700–750 may get approved depending on other factors, and scores significantly lower (e.g. 600s or below) will make it difficult to get an unsecured personal loan from mainstream lenders.

If you have never taken any loan or credit card before (hence no credit history and no credit score), it can be difficult to get an unsecured personal loan from a bank. Lenders rely on credit history to judge your repayment behavior, so a “thin file” or no score makes you an unknown risk. That said, some lenders might still approve a first-time borrower if other factors are very strong (e.g. you have a stable high-paying job and work for a reputable company). Another approach is to start with a smaller credit facility – like a secured credit card or a small consumer durable loan – to build some credit history. Once you have 6–12 months of on-time payments, your score will be generated. In summary, not having a credit history won’t necessarily disqualify you, but it limits your options. You may need to either go with lenders that cater to new-to-credit individuals or offer some alternative proof of creditworthiness (like a strong guarantor or collateral for a secured loan) to get approved initially.

Yes, it’s possible to hold multiple personal loans simultaneously, provided you have the repayment capacity for each. There’s no legal restriction on the number of loans you can take. In fact, some people might have, say, one older personal loan and then take a second loan for a new need. However, when you apply for a new loan, the lender will look at your existing EMI obligations – if your plate is already full of EMIs, they may decide you cannot afford another. Typically, lenders ensure your total EMI burden stays within about 50% of income. So if you already have one personal loan, the amount you can borrow in a second loan will be limited by the remaining headroom in that EMI-to-income calculation. Additionally, having many loans can make you appear “credit hungry.” But if you have sufficient income and a good credit score, you can take a second or even third personal loan. Some lenders even allow a top-up loan on an existing personal loan. Bottom line: You can hold multiple personal loans as long as you qualify for each new one – just be careful not to over-leverage yourself.

You can apply to multiple lenders to shop for the best rate, but you should do so cautiously. Each time you apply, the lender will fetch your credit report which results in a “hard inquiry” recorded on your report. Multiple loan applications in a short period can temporarily hurt your credit score and signal to lenders that you may be desperate for credit. It’s better to use online marketplaces to compare offers with a soft inquiry (which doesn’t impact your score) rather than sending many applications directly. If you do apply to more than one lender, try to keep the applications within a short span (2–3 weeks) so that loan shopping is treated as a single event. Also, once you find a good offer, it’s wise to close out other applications. In summary, while you’re allowed to apply widely, it’s not advisable to simultaneously submit too many applications – it could lead to rejections and score drops. Lenders themselves can see recent inquiries and may be wary if they notice you’ve applied to several others very recently.

Common reasons for rejection include not meeting the lender’s eligibility criteria or having issues in your credit profile. For instance, if your credit score is very low (due to past defaults or high debts), many banks will reject the application. Likewise, if your income is insufficient for the loan amount you requested, or you don’t meet the minimum income or job stability requirements, that can cause rejection. Other reasons could be: too many existing loans (your debt-to-income ratio is too high), frequent job changes or insufficient work experience, or errors in the application (like discrepancies in documents). According to one lender, an application might be rejected simply because your “credit profile did not match the policy at the time” – for example, if the lender tightened lending norms or your profile is outside their target segment. It’s also possible to get rejected due to documentation issues (if you failed to provide required proofs or if the verification failed). If your loan gets rejected, it’s important to find out the specific reason (lenders will usually tell you). This way, you can address that issue – like improving your credit score or correcting your documents – before applying again.

To maximize approval chances, focus on a few areas: maintain a good credit score, choose an appropriate loan amount/tenure, and ensure your documents and profile meet the lender’s criteria. Specifically:

• Improve your credit score – check your credit report for errors and get them corrected. Pay down existing debts if your credit utilization is high.
• Keep your FOIR (Fixed Obligations to Income Ratio) in check – lenders prefer your total EMIs to be under ~50–60% of income, so if you can close a smaller loan or credit card balance before applying, that helps.
• Apply for a realistic amount – don’t over-ask; use an eligibility calculator to see what amount you likely qualify for given your income.
• Stable employment – if you’re new in your job, it might help to wait until you complete probation or have 6+ months in the current job.
• Provide all required documents and truthful information – incomplete or inconsistent paperwork can derail an application.

Lastly, if your profile is borderline, consider applying with a co-applicant who has a strong profile (some lenders allow a spouse or parent to join the loan, which can raise eligibility). By doing these, you demonstrate reliability and capacity, thereby improving your approval odds.

Yes, lenders do specify a minimum income. The exact number varies: many banks require a minimum monthly salary of around ₹15,000 (some may set higher thresholds like ₹20k or ₹25k depending on city/category of employer) for salaried applicants. For self-employed, they often expect a minimum annual income (e.g. ₹5 lakh p.a. or above) evidenced by ITRs. These figures can differ by lender; for instance, one bank might stipulate ₹25,000/month minimum for metro city applicants, while another might allow ₹15,000. Essentially, you need to earn enough such that the EMI will be a reasonable portion of your income. If your income is below the lender’s cutoff, the loan may not be approved because of insufficient repayment capacity.

The exact documents can vary by lender, but typically you will need to provide:

• Proof of Identity (such as PAN Card, Passport, Aadhaar, Voter ID, or Driver’s License)
• Address Proof (Passport, Aadhaar, utility bill, etc., if not already covered by Aadhaar)
• Income Proof – for salaried individuals: last 3–6 months’ salary slips and/or recent bank statements showing salary credits, plus the latest Form-16 or ITR. For self-employed: recent Income Tax Returns (usually last 2 years) along with financial statements (Profit/Loss account, balance sheet) and bank statements for 6+ months.
• Additionally, a passport-size photograph and a duly filled application form are needed.
• Some lenders may ask for employment proof (like an employee ID card or an HR letter).

If you are applying online, scanned copies or clear photos of these documents are acceptable. In summary, be ready with KYC documents (ID/address) and income documents relevant to your profile. (Also note: PAN Card is almost always required, as most lenders insist on PAN for any loan application).

It can be quite fast – sometimes a matter of hours or a couple of days – if all your documents and credit profile are in order. Many lenders advertise approval within 24–48 hours for personal loans. In practice: if you are a pre-approved customer (say, your bank already has your info and offers a pre-approved loan), approval can be almost instant and disbursal the same day. If you apply fresh with documents, the bank will take some time to verify everything – typically the loan is approved within 1–3 working days after you submit documents. So the whole process from application to money in account might be about 4–7 days for a new customer. However, with digital processes and video KYC, timelines have shrunk – some online lenders even promise approval in a few hours and disbursement within 24–48 hours. To avoid delays, ensure you provide all documents correctly; missing documents or verification difficulties (like if your office cannot be verified) can extend the timeline.

Once your loan is approved and you have accepted the offer (and signed the agreement, if required), disbursement is quite fast. Many banks disburse the loan amount within 24 hours of final approval (especially for online disbursements). In straightforward cases, you might get the money even the same day approval is communicated. The whole process typically completes in 3–5 days total. After sanction, some lenders might take a day or two for internal checks before releasing funds. If you are pre-approved, disbursal can be almost immediate. For example, if you apply through a marketplace and get an instant approval from a partner bank, the fund transfer can happen in as little as 48 hours. In all cases, the loan amount is usually credited electronically to your bank account. To summarize, after final approval, expect the money in your account in 1–2 working days (and sometimes even sooner).

Yes, some banks do allow joint personal loan applications, typically with immediate family members. The most common co-applicant for a personal loan is a spouse, but a few lenders may also permit parent-child or siblings as co-borrowers, provided both are earning. The idea of applying jointly is usually to enhance loan eligibility (combining two incomes can qualify for a larger loan). For example, if you and your spouse both work, applying together might get a higher loan amount approved than either of you alone. Keep in mind: both co-borrowers’ credit profiles will be evaluated, and both will be equally responsible for repaying the loan. If one has a poor credit history, it could actually hurt the chances. Also, not every lender offers joint personal loans – many prefer a single borrower. But there are lenders who do, especially for larger loan amounts. So if you need a bigger loan and your individual income isn’t sufficient, a joint loan with a creditworthy family member is an option.

If you’ve just submitted the application but it’s not approved/disbursed yet, you can request the lender to cancel or withdraw your application. Many lenders will oblige if the loan hasn’t been processed fully. However, once the loan is disbursed, you cannot “cancel” it like a product order – you would then have to pre-close the loan (which might involve interest and any applicable foreclosure fees). If you need to change details (like loan amount or tenure) after applying, it can be tricky: some lenders may accommodate a different loan amount or tenure before signing the agreement, but otherwise you might have to cancel and re-apply with the new preferences. So, if you realize you made a mistake or want to back out, contact the lender ASAP. They may ask for a written request for cancellation. There is usually no significant penalty for cancelling at the application stage (though a few lenders might retain a processing fee if approval was already in process). In short: Yes, you can cancel or modify your application before disbursement, by informing the lender. After funds are disbursed, you’re bound by the loan agreement (though you can prepay to close it early if you wish).

Not necessarily. These days, you can complete the entire process online or through phone in many cases. B2C fintech platforms and banks have made it possible to apply, submit documents, and even sign agreements digitally. If your lender supports eKYC and digital verifications, you do not need to visit the branch at all – the loan can be approved and disbursed completely online. Even necessary documents like KYC and NACH (for auto-debit of EMIs) can be handled through e-signatures and online mandates. However, a few banks might still require a one-time physical verification – for example, some send an executive to pick up documents or have you sign an agreement in person, especially for higher loan amounts or if digital methods aren’t available. But many customers report getting personal loans from certain banks/NBFCs without ever stepping into a branch. Third-party marketplaces also make the process branch-free by acting as the interface. In summary, while you can visit a branch to apply (and some people do prefer face-to-face interaction), it’s no longer a requirement – you can get a personal loan from the comfort of your home if you choose the digital route.

Personal loan interest rates in India typically range from around 10% per annum to 24% per annum, depending on the lender and your individual profile. As of 2024–2025, many leading banks offer their best rates in the 10–12% range for high-credit-score customers (some public sector banks even start ~10.3%). For most borrowers, rates might fall in the mid-teens (12–18%). On the higher end, for lower credit scores or riskier segments, rates can go above 20% (certain NBFCs or fintech loans might charge ~20–24% p.a.). Being unsecured, these rates are higher than home loans but usually lower than credit card revolving rates. The exact rate you get will depend on factors like your credit score, income, loan amount, and the lender’s own base rates. It’s a good idea to compare offers – an online marketplace will show you multiple rate quotes. Always check whether the rate is fixed or floating (most personal loans are on fixed rates, meaning the EMI won’t change).

Personal loans can come with either fixed interest rates or (less commonly) floating rates, but the majority in India are fixed-rate loans. With a fixed rate, your EMI remains the same throughout the tenure. This gives stability – you know exactly what you’ll pay each month. Some banks offer floating-rate personal loans (the interest can decrease or increase if the benchmark rate changes), but this is not common for personal loans like it is for home loans. In floating rate personal loans (if offered), the EMI might reduce over time because interest is typically calculated on a reducing balance and the rate may be tied to MCLR or other benchmarks, adjusting every 6-12 months. But again, most lenders prefer fixed rates for personal loans of short tenure. So when you sign the loan agreement, check: it will usually specify a fixed annual rate. If it’s fixed, your EMI will be constant. If it’s floating, the lender usually mentions that it’s linked to a base rate and can change periodically (and they’ll also specify if EMI will change or tenure will adjust). In summary, expect a fixed rate in almost all cases unless explicitly told otherwise.

These refer to how interest is calculated on the loan: Reducing balance (a.k.a. diminishing balance) means interest is charged only on the outstanding principal at any given time, so as you pay off the principal, the interest portion of each EMI keeps reducing. Flat interest rate means interest is calculated on the full original principal for the entire tenure, without considering that you’re paying down the principal along the way. In India, personal loans are usually quoted with an effective reducing rate. A flat rate might be offered in some schemes (or when simply communicating in layman terms, but actual EMI is often calculated on reducing basis). To illustrate: Suppose ₹1 lakh loan for 2 years at 10% reducing – interest is 10% on the remaining principal each month (which goes down), so total interest paid might be around ₹11k over 2 years. A 10% flat rate would mean 10% of 1 lakh * 2 years = ₹20k interest, which is obviously much higher. That’s why flat rates are misleading – a “flat 10%” is roughly equivalent to about 18% reducing! Always clarify that the interest rate being offered is on a reducing balance basis (almost all bank quotes are). In essence, reducing balance method is what most lenders use; flat rate is used only for simplified calculation or certain special cases and ends up costing more since it doesn’t account for principal reduction.

Yes. Aside from the interest, lenders usually levy a one-time processing fee when the loan is sanctioned. This is often around 1–2% of the loan amount (plus GST). For example, if you take a ₹5 lakh loan, a 2% processing fee would be ₹10,000 + GST. Some lenders have a flat processing fee (e.g. ₹999 or ₹1499 on smaller loans), while others waive it for special promotions or for privileged customers. The processing fee is typically deducted from the disbursed amount (so if you’re approved ₹5 lakh with ₹10k fee, you might receive ₹4.90 lakh net). Other possible charges: Loan insurance premium (if you opt for an insurance to cover the loan, that’s optional), stamp duty on the loan agreement (small amount, varies by state), and documentation charges (nominal fees some lenders charge). There are also charges applicable later if needed: e.g. prepayment or foreclosure fee, and late payment penalties. But up front, the main fee is the processing fee. Always check the loan sanction letter for a breakdown of fees and charges. In many cases, if you have a good relationship, you can negotiate a lower processing fee or even get it waived (some lenders waive processing fees during festive offers or for certain employer categories).

Personal loan tenures generally range from 1 year to 5 years (12 to 60 months). The borrower can choose a term within this range based on comfortable EMI. The most common tenure people opt for is around 3 to 4 years, but banks usually allow up to 5 years. Some lenders might offer longer tenures in special cases (for example, a few NBFCs or banks might go up to 6 or 7 years for large loan amounts, or for certain customers) – however, that’s not the norm. Likewise, very short tenures like 6 months are rare for standard personal loans; if you need a very short loan, you might instead use a consumer loan or credit card EMI. So, expect that you can repay the loan over anywhere between 12 months and 60 months in most cases. Choosing a longer tenure lowers your EMI but you pay interest for more time, whereas a shorter tenure means higher EMIs but you save on total interest. It’s advisable to choose the shortest tenure whose EMI you can comfortably afford.

The EMI (Equated Monthly Installment) is determined by three factors: the loan principal amount, the interest rate, and the tenure. The calculation formula is based on standard amortization math. Without diving into algebra, essentially the bank uses a formula that ensures you pay equal installments each month that cover the interest and gradually pay off the principal. Interest is calculated on a reducing balance – meaning with each EMI, you pay interest on the outstanding principal for that month and the rest of the EMI goes towards principal. Early EMIs have a higher interest portion, later EMIs are mostly principal. For an estimate of EMI, you don’t need to calculate manually – you can use an online EMI calculator by inputting the loan amount, rate, and tenure to see the monthly EMI. For example, ₹1 lakh at 12% for 3 years is about ₹3,321 per month. The EMI formula ensures all payments are equal and the loan is fully repaid by the end. In summary, EMI is a function of loan amount, interest rate, and term; you can quickly compute it using free calculators provided by lenders or marketplaces.

Yes, you can prepay a personal loan – either in part or in full – before the originally scheduled tenure. Almost all personal loans nowadays come with an option for foreclosure (full prepayment) or partial prepayment after a certain minimum period. Many lenders allow you to prepay any time after, say, 6 months or 1 year of taking the loan. Some NBFCs, mention you can pre-pay “as and when you want” (subject to lender’s terms). However, note that most lenders will levy a prepayment penalty or fee if you close the loan early (see next question). Also, some have a lock-in – e.g. “No prepayment allowed in first 6 months” is a common condition. But beyond that, you absolutely can repay early. Early repayment can save you a lot on interest cost (since interest for the remaining months gets avoided). Make sure to inform the lender and follow their process for prepayment – typically, you’ll have to request a foreclosure statement and pay the remaining principal + applicable interest/charges. In summary, yes, you are allowed to repay early; just be aware of any timing restrictions or fees on doing so.

Often, yes. Many lenders charge a prepayment or foreclosure fee if you repay the loan before schedule. This fee is usually a percentage of the outstanding principal at the time of prepayment. Commonly it ranges from 2% to 5% of the amount being paid off. For example, a bank might charge 4% of principal if you foreclose within the first year, and 2% if after one year. Some also structure it as a sliding scale (higher penalty if closed in first year, lower thereafter). A few lenders may completely waive prepayment charges after a certain number of EMIs (or for certain customer categories or special offers). It’s worth noting that RBI has mandated no prepayment penalty on floating-rate loans – but since most personal loans are fixed-rate, that rule doesn’t apply to them. Always check your loan agreement for the foreclosure clause. Also, some banks do not allow part-prepayments until a minimum number of EMIs (say 12 EMIs) are paid. But in today’s competitive market, we are seeing some zero-foreclosure-charge personal loans too (especially from fintech lenders) – though they might adjust interest rates accordingly. Bottom line: be prepared that you might have to pay ~2–5% penalty on the outstanding loan amount if you choose to prepay early. Even with the penalty, prepaying can save interest if you have the funds, but you should factor the cost in.

Personal loan EMIs are usually paid monthly via auto-debit from your bank account. When you take the loan, you’ll provide an Electronic Clearing Service (ECS) or NACH mandate to the lender, authorizing them to deduct the EMI from your specified bank account every month on the due date. This is the most convenient method – ensure you maintain sufficient balance each month before the due date. Alternatively, some lenders may ask for post-dated cheques (PDCs) for a few months in advance (less common now, but it used to be standard to give a set of PDCs). Nowadays, online payment options exist too: you might be able to pay through the lender’s online portal via net banking or UPI if needed (for example, if an auto-debit fails, you can manually pay). But by default, ECS/NACH auto-debit is set up for the EMI. You can typically choose the date for EMI (somewhere near your salary date). If you don’t have an account with the lending bank, you’ll give them your other bank details for ECS. In summary: EMIs are paid monthly, automatically – you just need to ensure the account has funds. In case of any issue, you can also pay by cheque or online transfer to the loan account, but those are backup options. It’s important not to skip EMIs, so set up that auto-debit correctly and keep track of it.

Missing an EMI is serious – here’s what typically happens:

• The lender will usually levy a late payment fee or penalty for that missed EMI. Often, it’s a fixed charge or a percentage of the EMI amount. Additionally, a penal interest might accrue (for example, an extra 2% per month on the overdue amount for the period it’s unpaid).
• The missed payment will be reported to the credit bureaus (if it’s delayed beyond the grace period), which will hurt your credit score. Even a single 30-day delinquency can ding your score significantly.
• The lender’s collection department will contact you – initially it might be a reminder by call or email. If you miss multiple EMIs, they could send notice or recovery agents.

A delayed payment results in penalty fees and impacts your credit file, and the lender may even take legal action for sustained non-payment. In the short term, if you just miss by a few days and then pay, you’ll incur the late fee but potentially avoid a credit report hit (many lenders report only if 30+ days late). If you know you cannot make a payment on time, it’s best to inform the lender proactively – sometimes they might give a grace period or work out a solution. But bottom line, a missed EMI is something to avoid – it has financial costs (fees/interest) and damages your creditworthiness.

“Default” usually means you have stopped paying entirely (typically 90 days past due is considered default by banks). If this happens, the consequences are severe. First, the lender will escalate collection efforts – you would have likely received multiple reminders by this point. Once an account is labeled a default, the loan is classified as an NPA (Non-Performing Asset) in the bank’s books. The lender may then enlist recovery agents or initiate legal proceedings to recover the dues. Since personal loans are unsecured, they can’t seize an asset directly, but they can file a suit for recovery. Your credit report will clearly reflect the default, which will drastically lower your credit score and make it extremely difficult for you to get any loans or credit cards in the future. In many cases, the default is also marked as “Written Off” or “Settled” (if you negotiate a partial payment) on the credit report, which is a red flag for any future lender. In short, defaulting on a personal loan should be avoided at all costs – it’s financially ruinous and damaging to your reputation. If you truly cannot pay, try to work out a settlement or restructuring with the lender before it gets to the stage of outright default. But note, even a settlement (where the bank forgives a portion) will be noted as “settled” and hurt your credit. Legally, you are obliged to pay; long-term defaulters can face court cases. Conclusion: Default leads to collections harassment, legal action, and a ruined credit profile – it’s the worst-case scenario.

There are a few strategies to manage or reduce the burden:

• Improve your credit score and negotiate – If your credit profile has improved since you took the loan (say, other debts cleared or income increased), you can ask your bank for a lower rate or an EMI reduction. Sometimes lenders give a relationship discount to long-standing customers or those with improved credit, which could lower your EMI.
• Refinance or Balance Transfer – You can transfer the loan to another bank offering a lower interest rate. By doing a personal loan balance transfer, you essentially take a new loan at a cheaper rate to pay off the old loan; this can reduce your EMI and overall interest cost if done early.
• Make part-prepayments – whenever you have extra funds (a bonus, etc.), pay a chunk towards the principal. This will either reduce the remaining EMIs or shorten the tenure, saving interest.
• Increase tenure – if EMI strain is high and you’re okay paying longer, you could talk to the lender about extending the tenure (though within max allowed). A longer tenure lowers monthly EMI (but remember, more interest overall).
• Relationship perks – If you have a salary account or other products with the bank, mention it. Some banks have lower rates for employees of certain reputed companies or for certain professional groups.

In summary, refinancing at a lower rate and prepaying principal are effective ways to reduce your loan burden.