How to Reduce Interest on loans - Check out in detail

There has been lots of advancement in finance in technology,getting loans has become easy now a days

So people must follow some set of rules,to make sure to reduce your interest on loans

1. Register for Auto-pay

Make sure that you pay all the dues on time to avoid building up the interest component and penalties. To ensure you pay all your EMIs on time, it is advisable to register for a debit mandate.  

2. Reduce Loan Tenure 

Shorter loan tenure and paying higher EMIs ensure you pay off your debt and reduces burden on you

3. Make Part-payments 

Through part payments you can easily pay whenever you have surplus income

4. Consider Loan Transfer 

if a new lender is offering you a good deal for a loan transfer, it is advisable to do a cost-benefit analysis and calculate the expected saving by considering the current and new interest rates 

5. Opt for Debt Consolidation 

Debt Consolidation is an act of taking out a new loan to pay multiple debts with usually a lower rate of interest. It helps you to manage your debt and lower your financial burden. 

6. Develop Banking Relations 

it is recommended to open a bank account with a leading bank that offers such benefits.  

7. Claim Interest Deductions 

Certain loans like home loans and education loans are eligible for tax deductions on the interest amount. You can save a considerable amount through tax rebates.  

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