Can I reduce or change the EMI on my Used Car Loan?

You can often reduce or change your EMI while repaying your used car loan, based on the lender’s policy. If you think you can afford to have lower EMI, you can ask the lender to extend your repayment tenure which means you will pay back the used car loan for a longer duration in numbers of months and it will also reduce your monthly outflow. Lenders also allow you to restructure the loan in case you are having financial difficulties, however, it will require some paperwork or charge. If you receive a bonus, or otherwise have extra cash, you can make a part-prepayment which will reduce the outstanding principal, and hence either reduce your EMI or lower the tenure of your loan. You would want to confirm with your lender that they allow for part-prepayment without penalty or charge as some may charge you a fee for part-prepayment. Many lenders offer to change your EMI payment date via their online portals or in some case by contacting customer service. Keeping track of and managing your EMIs allows you to avoid missed payments, remain on track to meet your repayment obligations, and manage your finances to a degree, that suits your situational needs.

Another method you can use to help lower your monthly EMI can also involve transferring your loan to another lender that offers you a lower interest rate, this is referred to as a balance transferral. If your credit score has improved since obtaining the loan, you may wish to negotiate the terms with your lender along the same or similar lines.