{"id":7689,"date":"2020-08-04T23:14:45","date_gmt":"2020-08-04T17:44:45","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=7689"},"modified":"2025-10-20T19:02:35","modified_gmt":"2025-10-20T13:32:35","slug":"how-to-cut-down-your-loan-load","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/how-to-cut-down-your-loan-load\/","title":{"rendered":"How to cut down your loan load?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a05f107f398f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path 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on your loan load\">Efficiently cut down on your loan load<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/how-to-cut-down-your-loan-load\/#Option_for_reasonable_EMI\" title=\"Option for reasonable EMI\">Option for reasonable EMI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/how-to-cut-down-your-loan-load\/#Increase_the_amount_of_repayment_with_raise_in_your_income\" title=\"Increase\u00a0the\u00a0amount\u00a0of\u00a0repayment\u00a0with\u00a0raise\u00a0in\u00a0your\u00a0income\">Increase\u00a0the\u00a0amount\u00a0of\u00a0repayment\u00a0with\u00a0raise\u00a0in\u00a0your\u00a0income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/how-to-cut-down-your-loan-load\/#A_Wonderful_idea_to_Refinance_Presents\" title=\"A Wonderful idea to Refinance Presents\">A Wonderful idea to Refinance Presents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/how-to-cut-down-your-loan-load\/#If_possible_then_opt_for_pre-payment_or_part-payment\" title=\"If possible then opt for pre-payment or part-payment\">If possible then opt for pre-payment or part-payment<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/how-to-cut-down-your-loan-load\/#Existing_investments_that_can_also_be_used_to_repay_debt\" title=\"Existing investments that\u00a0\u00a0can also be used to repay debt\">Existing investments that\u00a0\u00a0can also be used to repay debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/how-to-cut-down-your-loan-load\/#Impact_of_GST_on_Personal_Loan\" title=\"Impact of GST on Personal Loan\">Impact of GST on Personal Loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/how-to-cut-down-your-loan-load\/#How_to_obtain_Tax_savings_through_Business_Loan\" title=\"How to obtain Tax savings through Business Loan\">How to obtain Tax savings through Business Loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/how-to-cut-down-your-loan-load\/#Everything_You_need_to_know_about_SIDBI_Loan_Scheme\" title=\"Everything You need to know about SIDBI Loan Scheme\">Everything You need to know about SIDBI Loan Scheme<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Efficiently_cut_down_on_your_loan_load\"><\/span><span style=\"color: #000080;\"><strong>Efficiently cut down on your loan load<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/Loan.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8346\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/Loan-1024x683.jpg\" alt=\"www.carajput.com;Loan\" width=\"1101\" height=\"735\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/Loan-1024x683.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/Loan-300x200.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/Loan-768x512.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/Loan.jpg 1200w\" sizes=\"(max-width: 1101px) 100vw, 1101px\" \/><\/a><\/p>\n<p>Borrowing is now without doubt one of life&#8217;s most critical constituents. We&#8217;ve all made use of it to tide over the financial crisis we face from time to time. But loans can also prove to be a burden, even when they&#8217;re repaid with interest and within a specified time period. However, one can effectively reduce the loan burden by managing properly and live lives which are essentially stress-free.<\/p>\n<p>Go through the write-up and find some of the ways how smartly reduce your loan burden for yourself.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Option_for_reasonable_EMI\"><\/span><span style=\"color: #000080;\"><strong><em><u>Option for reasonable EMI<\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When the borrower struggles to repay the monthly EMI then his credit score takes a beating that spoils his record and harms his potential borrowing chances. Hence, it is essential that he opts for reasonable \u00a0EMI\u00a0\u00a0\u00a0\u00a0 that can be easily repaid.\u00a0 In order to learn about the EMI that you will have to pay on the loan that he is preparing to take,\u00a0 \u00a0you could request online EMI calculator assistance. This will help the borrower know the EMI that he will have to pay for and if he could afford it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Increase_the_amount_of_repayment_with_raise_in_your_income\"><\/span><span style=\"color: #000080;\"><strong><em><u>Increase\u00a0the\u00a0amount\u00a0of\u00a0repayment\u00a0with\u00a0raise\u00a0in\u00a0your\u00a0income<\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>\u00a0<\/strong>\u00a0So if your price grows, then you are also needed to increase your monthly EMI amount. Doing this would ensure you complete your <a href=\"https:\/\/carajput.com\/blog\/how-to-cut-down-your-loan-load\/\">loan<\/a> earlier than that of the specified period and are free to take care of those other valuable things in your life. If one has to clear more than one loan then he will manage to clear the highest interest loan. On the other hand, if you still have current debt from the credit card, you should first clear it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"A_Wonderful_idea_to_Refinance_Presents\"><\/span><span style=\"color: #000080;\"><strong>A Wonderful idea to Refinance Presents<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>www.carajput.com; RefinanceRefinancing or transferring a balance not only reduces interest but also actually reduces the loan burden. It means that one can pay off the existing loan with a new loan that can be acquired from the same or any other lender.<\/p>\n<p>Refinancing can prove helpful in cases where the borrower has an ongoing loan that he has taken full advantage of at interest rates, unfavorable conditions, etc., whereas different lenders offer the same loan at good deals.<\/p>\n<p>To opt for refinancing the borrower will have to apply for a transfer to balance with the new lender who will pay the money immediately to the previous lender who will then close his loan account while activating his new account with the new lender.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"If_possible_then_opt_for_pre-payment_or_part-payment\"><\/span><span style=\"text-decoration: underline; color: #000080;\"><strong>If possible then <\/strong><strong><em>opt for pre-payment or part-payment<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Prepaid and part-payment allow the borrower to pay off the amount of the loan as well as the interest before the specified time. Pre-payment of the loan decreases the outstanding principal amount and in turn reduces the EMIs.<\/p>\n<p>On the other hand, times occur when the borrower has any surplus amount. He also will take advantage of this opportunity to pay parts of a home loan. These partial home loan installments bring down the principal amount and the EMIs and interest paid thereon.<\/p>\n<p>Both pre and part payments are reducing the borrower&#8217;s big-time financial burden.<\/p>\n<p>However, it is important to clarify whether or not the lender offers the pre-and part-payment facility at the very end.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Existing_investments_that_can_also_be_used_to_repay_debt\"><\/span><span style=\"color: #000080;\"><strong><em><u>Existing investments that\u00a0\u00a0can also be used to repay debt<\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Borrowers can use the loan for repaying their debt against investments such as PPF, life insurance policy, etc. Here it would be worth recounting that the PPF permits the investor to take advantage of the investment loan from the third financial year which can then be repaid over the next three years. The maximum amount that can be used as a PPF loan can be up to 25 percent of the balance. The interest paid on borrowing is 2 percent higher than the average interest rate of PPF.<\/p>\n<p>Unless\u00a0one\u00a0follows\u00a0the\u00a0above\u00a0points\u00a0then\u00a0there\u00a0can\u00a0be\u00a0no\u00a0shred\u00a0of\u00a0doubt\u00a0that\u00a0he\u00a0will\u00a0be\u00a0able\u00a0to\u00a0repay\u00a0his\u00a0loan\u00a0on\u00a0time\u00a0without\u00a0any\u00a0hassles,\u00a0and\u00a0there\u00a0will\u00a0be\u00a0no\u00a0debt\u00a0burden\u00a0in\u00a0his\u00a0life.<\/p>\n<p>Read our articles:<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Impact_of_GST_on_Personal_Loan\"><\/span><a href=\"https:\/\/carajput.com\/learn\/basic-impact-after-implication-of-gst-on-the-personal-loan.html\">Impact of GST on Personal Loan<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"How_to_obtain_Tax_savings_through_Business_Loan\"><\/span><a href=\"https:\/\/carajput.com\/blog\/how-to-obtain-tax-savings-through-business-loan-in-indian-situation\/\">How to obtain Tax savings through Business Loan<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Everything_You_need_to_know_about_SIDBI_Loan_Scheme\"><\/span><a href=\"https:\/\/carajput.com\/learn\/everything-you-need-to-know-about-sidbi-loan-schemes.html\">Everything You need to know about SIDBI Loan Scheme<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Efficiently cut down on your loan load Borrowing is now without doubt one of life&#8217;s most critical constituents. We&#8217;ve all made use of it to tide over the financial crisis we face from time to time. But loans can also prove to be a burden, even when they&#8217;re repaid with interest and within a specified &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[9061,9059,9060],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/7689"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=7689"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/7689\/revisions"}],"predecessor-version":[{"id":30228,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/7689\/revisions\/30228"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=7689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=7689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=7689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}