Home loan EMIs may take a substantial chunk of a borrower’s monthly income. Generally, the maximum EMI, a borrower, can choose is an amount equivalent to 50% of their net monthly income. Hence, if you select the maximum loan amount according to your eligibility, your EMIs may occupy the most prominent spot in your monthly expense list. However, it is not too difficult to bring down the EMI amount.

This article lists the top ways to reduce your home loan liability and how a home loan EMI calculator can make the task simpler.

The Top Ways to Reduce the Burden of Home Loan EMIs

Transfer Your Loan Balance to Another Lender

If you have a home loan in your portfolio and want to reduce home loan interest rates and EMIs, you can opt for a balance transfer and extend the loan tenure. Although it is true that you can also request for an extension of the term with your existing lender, such requests are often classified as rewriting and may hurt your credit profile. Hence, if you want to reduce the burden of home loan interest rates and EMIs, it is better to opt for a balance transfer than requesting your lender to extend the term. Use a home loan EMI calculator to find out the real savings.

Select a Long-Term Loan

With a higher loan term comes lower EMIs. Generally, you can choose a loan term of up to thirty years. Many borrowers prefer selecting a shorter term, as it enables them to repay the loan earlier. However, a longer tenure also increases the home loan interest rates marginally. Hence, you need to use a home loan EMI calculator to calculate the impact of term on your EMIs. Some wise borrowers pay a part of the principal as often as possible since part-prepayment reduces the principal and reduces the EMIs.

Increase the Down Payment Amount

When you apply for a home loan, the lender will approve a loan amount of up to 90% of the property cost, and the borrower needs to pay the remaining as the down payment. However, if you want to reduce your home loan EMIs, increase the down payment amount, and check the reduced EMIs on a home loan EMI calculator. Since a higher down payment reduces the principal, it will also reduce your monthly liability, and the lender will gladly offer you the best home loan interest rate.

Choose an Appropriate Interest Type

Choosing the appropriate interest type is crucial if you want lower EMIs. The interest rate can be fixed or floating. When you opt for the fixed rate, the home loan interest rate and EMIs remain the same throughout the tenure of the loan. However, if you want the interest rates to change depending on market conditions, opt for the floating rate. A home loan EMI calculator can help you spot the differences between fixed and floating rates of interest.


Reputed lenders, such as PNB Housing Finance, provide several free tools like home loan EMI calculator, for borrowers to find the right cost of their loan. As an informed borrower, you can use such free tools to select the right loan amount, interest rate, and EMI amount. Also, read the terms carefully before applying for a home loan.


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