Is it better to increase EMI or reduce tenure for home loan?

Short answer
Reducing tenure is usually better than just increasing EMI. It saves more interest. But only do it if your monthly cash flow is comfortable.

How Increasing EMI Helps

When you increase your EMI, a bigger portion goes towards principal every month. This automatically reduces the loan faster and cuts interest. If the bank keeps tenure same, EMI badhega but total interest kam ho jaata hai.
Yeh option tab sahi hai jab income stable ho aur monthly budget easily handle kar pao.

How Reducing Tenure Helps

Reducing tenure means you keep EMI almost same but finish the loan earlier. This saves the maximum interest because interest is calculated for fewer years. Long-term savings yahin hoti hai.
Tenure kam karna disciplined approach hai and loan jaldi free ho jaata hai. Thoda commitment chahiye, but result strong hota hai.

Which One Is Better in Real Life

Pure maths ke hisaab se, tenure reduction always saves more interest than EMI increase. But personal finance sirf maths nahi hota.
If increasing EMI makes your budget tight or leaves no room for emergencies, it is risky. Stress-free repayment zyada important hai.

A Practical Middle Path

Many borrowers choose to reduce tenure and slightly increase EMI together. Isse interest bhi bachta hai aur monthly pressure bhi manageable rehta hai. Agar bonus ya increment mile, us time EMI revise karna smart move hota hai.

Things to Check Before Deciding

• Emergency fund hona chahiye
• EMI should stay within safe income limits
• Bank should allow tenure change without penalty

Final Takeaway

If you can afford it comfortably, reduce tenure. That saves the most money. If cash flow tight hai, increase EMI slowly. Goal sirf interest bachana nahi, loan ko stress-free close karna hona chahiye.