What are various ways EMIs can be more pocket friendly ?

Expert : Its about not blocking your capital today. There are loans with flexibility which keeps EMI less and make it easy to pay. Outflow of EMI will not hit you hard on pocket.

For example there is flexibility of you paying EMI just on interest amount in initial tenor.

If you are taking Home Improvement loan (Personal Loan) you pay Interest only on the amount you utilised.

For example someone was renovating home. Contractorbhai gave estimate of 10 lakhs. Initially this home owner wants to spend only 2 lakhs. So you have access to 10 lakhs but you utlisied only 2 lakhs, so interest only 2 lakhs is charged. 8 Lakhs is is like virtual line available to you. Your commitment to pay will only be amount utilised.

So you were sanctioned 10 lakh, you used 2 lakhs. Interest will be charged only on 2 lakhs & you have to return only 2 lakhs. You dont pay completely amount in one go to Contractors. You pay as work progresses. Estimates are always on 5-10% higher. If some money is left at the end, you dont pay interest on it.

Common term loans work in different fashion. If you were sanctioned 10 lakhs, you start paying back interest & capital on 10 lakhs. In Flexi loans, you pay for money you utlised.