You checked your bank app today, and boom!
Your EMI just went up — even though your loan amount hasn't changed.
Confused? Don’t worry.
This guide explains why your loan EMI might suddenly increase and how Vizzve Finance helps you manage such shocks.
Top Reasons Why Your EMI Increased
1. Floating Interest Rate Hike
If you opted for a floating rate loan, your EMI changes based on market conditions.
✅ Example: RBI repo rate hikes lead to banks adjusting interest rates, increasing your EMI.
2. Loan Restructuring or Recalculation
If you:
Missed EMIs
Deferred payments during moratoriums
Opted for top-up loans
Your bank may restructure your repayment — increasing EMI or tenure.
3. Shortened Loan Tenure
Some lenders adjust your tenure downwards when interest rates rise, to meet internal lending limits — pushing up your EMI.
4. Auto-Debit Error Correction
Earlier EMIs may have been incorrectly charged due to:
Processing errors
Underestimated interest
Your bank may adjust this in future EMIs.
5. Conversion from Fixed to Floating Rate
Many fixed-rate loans convert to floating after 2–3 years.
Once that happens, market rate changes directly affect your EMI.
Vizzve Insight: Real Customer Example
A Vizzve customer with a ₹10L home loan saw his EMI rise by ₹700 after a 0.5% rate increase.
Our advisors helped restructure the tenure to keep the EMI comfortable.
What You Can Do About It
1. Talk to Your Lender
Request a breakdown of:
New interest rate
Adjustments made
Tenure vs EMI trade-off
2. Ask for Tenure Adjustment
Convert your EMI increase into a longer tenure if monthly budget is tight.
3. Refinance or Balance Transfer
Use platforms like Vizzve Finance to:
Compare better interest rates
Transfer loan for lower EMIs
4. Review Your Loan Type
Next time, evaluate:
Floating vs Fixed interest
EMI caps and reset clauses
Vizzve Finance Advantage
At Vizzve, we:
Alert you of EMI or interest changes
Help track repo-linked rate movements
Recommend when to refinance or pre-close
Assist with affordable balance transfers
❓FAQs
Q1: Can banks increase my EMI without informing me?
They must notify you. Always read the communication or statements carefully.
Q2: Can I switch from floating to fixed?
Yes, but it involves a conversion fee. Ask your lender or consult Vizzve.
Q3: Will my EMI go down again?
If interest rates drop, floating rate EMIs can reduce — but it's not guaranteed.
Published on : 22nd July
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed