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Smart Tips to Reduce EMI Burden on a Car Loan
Posted on Friday, September 3rd, 2021 | By IndusInd Bank
There was a time when owning a car was a luxury for Indian households. No longer is that the case! Be it for daily commute or the simple convenience of being able to take off on a ride whenever your heart desires, there is no denying that owning a car is a necessity today.
Got a superb car model in mind? You deserve the best! But don’t let a car purchase exhaust your hard-earned savings. You can easily finance it with a four-wheeler loan with IndusInd Bank. Since loans require you to pay Equated Monthly Installments (EMIs), there is still some strain on your monthly budget. But, if you play it smart, you can actually bring your EMIs down. Don’t believe it?
Well, we’re here to tell you just how. We’ve packed some of our best EMI tips in this article so your loan repayment experience is a breeze!
Negotiate on the Vehicle Purchase Price
The first thing you need to do is get a good deal on the car. After deciding the model that suits your requirements, scout the market for different car dealers and compare their offers. Negotiate a car price according to your budget and cut the best deal.
When you get a good price on your car, the overall loan cost will come down automatically. As a result, you pay lower EMIs too.
Choose the Repayment Tenure Wisely
The loan repayment tenure directly impacts your EMIs. Opting for a longer tenure will result in lower EMI payouts. On the other hand, a shorter tenure will increase the EMI. So, you’ll have to pay a relatively higher amount every month. Do consider your monthly budget before deciding on the loan tenure. Strike the right balance so you can repay the loan comfortably.
IndusInd Bank offers up to 100%* on road funding that is a hassle-free means to finance your new car which you can take advantage of.
Opt for A Bigger Down payment
The down payment is the amount you pay upfront when you buy the car. The interest on your car loan is calculated on the principal amount you borrow. Thus, bigger the down payment, lower will be the principal amount. As a result, you will have to pay lower EMIs.
Ideally, if you have the money, make a good down payment. Just make sure you aren’t depleting your savings.
Prepay Your Loan Amount
Prepaying your loan amount is an excellent way of reducing the loan EMI burden. In case you have some extra funds in hand, you can fully or partially prepay your loan. This will lower the interest as well as the EMI payments and help you repay faster. Verify if there are any foreclosure or prepayment charges with the bank.
Summing Up
If you have your heart set on a car you want to bring home but are worried about the funds, turn to IndusInd Bank. You can get up to 100% financing on your new car purchase at attractive car loan interest rates!
Choose us for doorstep assistance, minimal documentation requirements, customizable EMI options, and speedy loan processing. On top of that, we allow you to choose a flexible repayment tenure. So, wait no more and buy the wheels of your dreams with IndusInd Bank!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
