smart Hacks To Reduce Home Loan EMI
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4 Smart Hacks To Reduce Home Loan EMI

20 Feb 2021

 Here we describe 4 smart hacks to reduce home loan EMI.


This article is useful if you are unable to deal with your home loan re-payment due to the COVID-19 crisis. It will help you to understand:

  • 4smart hacks to reduce EMI of the Home Loan during the financial crisis.
  • Several waivers and contracts are connected with NBFCs and Lending institutes.
  • What was the RBI moratorium on Bank Interest?
  • What is Loan Refinance?

Despite the credit crunch brought on by the COVID-19 pandemic, it has become an uphill struggle for many to meet payments and keep up with the additional expenses. This is largely due to layoffs and benefit reductions at most workplaces. Thankfully, there are some ways to lessen your EMIs to home loans.

Do You Know RBI Initiative on EMI Holiday?

To resolve the financial crisis, RBI declared a total of six months moratorium on loan EMIs starting from 1 March 2020 to 31 August 2020. The period of moratorium refers to the period during which you do not have to pay an EMI on the loan earned. It is also regarded as a holiday for EMI.

We have found a few intelligent strategies by which you can reduce the monthly loan EMI burden for the benefit of home loan buyers. Let us address these strategies in detail.


One of the best ways to save on EMI payments is by refinancing your home loan at a lower interest rate. So if you wonder how to reduce the EMI amount of your home loan, consider changing your lender. It is likely that several years ago you might have taken home the loan and at that point, the interest rates were on the higher side than they are now.

Changing the lender of the loan is not a complex operation. Start searching for a new lender that provides lower interest rates and you can easily get your current lender to move a home loan. Experts also recommend that you select a lender that provides a Lending Rate (MCLR) based on the Marginal Cost of Funds, as you will benefit from lower repo rates.

To check the amount you will be paying at a discounted interest rate, you can use an EMI calculator.


Many banks and Non-Banking Financial Companies (NBFCs) have waived loan pre-payment charges because of the pandemic situation, allowing borrowers to pay a substantial sum of money to repay the loan in advance. It is possible to use the home loan overdraft facility that is connected to your bank account to deposit any amount greater than the EMI.

This will be used as a pre-payment for the home loan, thereby lowering interest on the balance of the unpaid loan. In case of any emergency, you will have the flexibility to withdraw this extra amount later and the outstanding loan amount will be changed accordingly.


Both the interest and EMI balance would be lowered by paying a higher down payment amount on your home loan. If you are taking advantage of a home loan, use your savings, and consider making a larger down payment. Besides, rules for the withdrawal of funds from the Employee Provident Fund Organization (EPFO) account have now been relaxed by the government.

In March 2020, the Labor Ministry released a notification enabling 60 million subscribers to withdraw from their Provident Fund account, whichever is lower, up to 75% of their retirement savings or up to three months’ minimum salary and dearness allowance (DA). It is a smart choice to make the most of all these services to pay a higher down payment on your home loan.

You can get all kinds of co-operation and options of having a different kind of down payment in this latest Rajarhat project Magnolia Merlion.


Another option is to pursue an extension of the current home loan lender’s repayment tenure. Although longer credit tenure means you have to pay more interest, your monthly EMI balance may be substantially reduced. This is the only choice you can consider if nothing else works.

The extension approval depends mainly on your age, as the loan duration is generally allowed only until your retirement age and not beyond that. You can, however, approach your lender and request an application.


If you want to reduce your EMI burden on the home loan, you should follow the tips provided in this article. These are the times when you should manage your loan EMI with clever and strategic action. Ensure that you get a lender that offers lower interest rates when you want to take out a new loan.

You must read all terms before signing. These procedures allow you to make an informed decision about the interest, loan tenure, pre-payment options, refinancing, and other loan policies.

Thousands of happy buyers advocate informed tips and knowledge-based services of Kolkata-based reputed brand, Magnolia. Check their Latest Projects.


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