Availing too many loans means availing too many EMI’s, which ultimately leads the applicant to forget one or two Emi to repay. This happens a lot as a person might get confused regarding clearing off the debt. Another thing is that since the rate of interests which are setup by the RBI and provided to commercial banks are fixed. Due, to which banks willingly also, can’t provide you with lower rate of interest. Resulting, which you end up paying more interest than require. In order to deal with all this, consolidating your loan debts (personal loan or home loan) is the best option to do. Hence, below are some pointers which might help you to deal with it.

Partial pre-payment

This is a beneficial process as you can reduce the EMI by making partial pre-payment on the principal amount of your loan. This will help you to reduce the EMI as well as the overall interest amount of your loan. However, it is advisable that you should check factors like pre-payment limit, penalty, and charges imposed by banks, as some lenders only allow full pre-payment while some others discourage part-prepayment, whereas some banks even charge for pre-payment on loans.

Prepayment penalties varies from one lender to another, as these are charged either at a flat rate or at a certain number of month's interest , which means the time left for your tenure. The private lender advises the loan owners to compare the penalty of the pre-payment with the overall amount that the applicant will save in terms of interest. They further say that in order to get the best from the partial pre-payment facility, the borrower should carefully read the contract or talk to the bank in detail about this.

Balance transfer 

The second option which can be consider is the balance transfer which means the banks give the option of transferring home loan or personal loans to cheaper interest rates on offer with other banks. This benefits the borrower when there is a good difference between the interest rate of the other bank and the interest rate of the first lender, as it will be advantageous for the borrower as now, he will be paying off the loan in a less interest.

Increase the loan tenure

The third benefit which the borrower can avail in availing a loan is to increase the loan tenure. A borrower can request the bank to increase the loan tenure if the borrower is facing any financial troubles in repaying the loan amount. Generally, this is the facility that the banks offer to borrowers. In this the EMI amount decreases when the tenure goes up, and hence you can repay the loan amount easily.