Can I change my EMI tenor or amount during the loan tenure?
Curious about EMIs
In many cases, it is possible to change your Equated Monthly Installment (EMI) tenor or amount during the loan tenure, but it depends on your lender's policies and the type of loan you have. Here are some key points to consider:
1. Flexibility of Loan Type:
Some loans, especially personal loans and certain types of consumer loans, may offer flexibility in adjusting your EMI tenor or amount during the loan tenure. These loans are often referred to as "flexible" or "customizable" loans.
2. Mortgage Loans and Fixed Installments:
In contrast, longterm loans like home loans or mortgage loans typically have fixed EMIs throughout the loan tenure. These loans are designed to provide stability and predictability in your monthly payments. It's less common to change EMI tenors or amounts for such loans.
3. Conditions for EMI Changes:
If your loan allows for changes in EMI tenor or amount, there are usually conditions and guidelines set by the lender. Common conditions may include:
Minimum number of EMI payments made before requesting a change.
Limits on how much you can increase or decrease your EMI.
Fees or charges for making changes to your EMI.
4. Documentation and Approval:
Typically, you will need to formally request the change in EMI by contacting your lender. They may require you to submit documentation, such as a written request or a new loan agreement, depending on the nature of the change.
5. Impact on Loan Tenure:
If you choose to increase your EMI amount, it can lead to a shorter loan tenure, helping you repay the loan faster. Conversely, reducing the EMI amount may extend the loan tenure.
6. Interest Implications:
Changing your EMI amount may also affect the total interest you pay over the life of the loan. Increasing the EMI reduces the interest paid, while decreasing it can increase the overall interest cost.
7. Discuss with Your Lender:
Before making any changes to your EMI, it's essential to discuss your options with your lender. They can provide specific details about their policies and the impact of changes on your loan.
Keep in mind that not all loans offer the flexibility to change EMIs during the tenure, and even when it is an option, there may be conditions and limitations. Always review your loan agreement and consult with your lender to understand the terms and implications of changing your EMI.