How can one reduce the EMI of their commercial vehicle loan?

While the EMI is finalized by the lender, the borrower can take some steps to get a lower EMI, either before loan approval or during repayment. Some of these ways are: 

  • Paying an extra EMI 

Whenever it is possible for you, it is advisable to pay an additional EMI. This leads to a considerable reduction in the outstanding amount, which does not only mean lesser EMIs but also reduced interest rates. 

  • Ensure a positive credit history 

A business owner or organization with a positive credit history often receives lower interest rates and lower EMIs. A good credit history, or score, ensures the lender to a certain extent that you are concerned and diligent about repaying your commercial vehicle loan. 

  • Make bulk pre-payments 

Pre-paying a loan reduces your outstanding amount as well as shows a considerable decrease in your interest rate. 

  • Maintain good relations with the lender and negotiate

While this is dependent on the lender, you, as a borrower can maintain a good relationship with them and attempt to negotiate when it comes to the rate of interest.