It is really exciting to buy a brand new car. Especially while you are financed by a bank, the excitement is doubled as you buy the car for lower cash value. But you must understand clearly that you are bound to repay your debts to your lender, until which you are not the real owner of the car. Here comes EMI, where you start repaying your debts through small monthly payments. It looks simple at the beginning but soon you may find yourselves struggling to pay for the monthly EMI.
There are certain ways through which you can reduce the amount of EMI that you pay.
Make a larger down payment
While you make a larger down payment, then you may pay less EMI. Also always try to make half of the cost of the car as down payment. This also has a great impact on the duration for which you may be bound to pay your EMI.
Go for lower interest rates
When your interest rates are lower you can easily pay off your EMI, within the stipulated time period. So always go for bank loans that offer lower rate of interest.
Shorter duration and larger EMI
When you choose to pay off your EMI in a shorter duration, you may have to pay larger sum of money as EMI. But while the interest rates are lower, paying a larger value of EMI is the best option to pay off your car loan.
Go for smarter loans than cheaper ones
Some banks may offer you Cheaper EMIs and steal your attention. But while choosing your car loan, look for a smarter one. Smaller EMI payments will be a benefit to your lender as they may collect a higher rate of interest in the first few installments. Hence always choose over a considerable EMI payment.
Recommended Read :
- How to Apply for a Car Loan?
- What is the Car Loan Eligibility?
- Car Loan Eligibility - Important Points
- 7 Factors That Make Car Loan Simple
- Advantages of Car Loan
- Pros and Cons - Car Loan
- How to get Loan for a Used Car?
- Why Used Car Loan Interests Higher than New Car Loan?
- Car Loans in India
- What is EMI?
- EMI Calulation Method
- How to Reduce Home Loan EMI?
I would certainly suggest this read to any of my friends or people in known circles who are planning to buy a car. It’s really important to know the pros and cons of a loan before taking it .And to get some useful tips is really awesome. I have to bookmark this for future!