Ways that You can Follow to Reduce EMI on Car Loan

Ways that You can Follow to Reduce EMI on Car Loan

Owing a car with loan is much easier. With the availability of car loans, you can buy your dream car at whatever at point you want and if the EMI is in your budget. It is also possible to reduce the EMI on the car loan before applying for it or maybe during the loan. However, many of us come into decision before doing proper research and end up paying more credit from the monthly salary. Below are the ways that you can follow to reduce EMI on Car loan.

Negotiate on the Car loan

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The first thing you should to do id to try to cut on the cost of the car. It is always good to look for better choices so you can attempt various loan specialists before you decide. Even you get accessories for free as well like the free leather seat covers or rust painting, engine lamination. You need to avoid buying any car insurance from the seller as you can get them at low cost through online.

Look for NBFCs from Car Manufacturing Companies

The NBFCs from a car or automobile manufacturing company will provide really god loan-deals which can help to save money. But it is always good if you let them offer first and then you can tell them that you want to take a loan for the car.

Negotiate with the lender

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Always try to negotiate with the NBFC or the bank to get a car loan at a lower interest rate as it will reduce the burden of cash outflow. So, you can go through the lists of banks with their interest rates and decide on the car loan.

Make big down payment to cut EMIs

Over here, try to think of paying decent amount of down payment for reducing the burden of EMIs. If it is possible, pay half of the amount in down payment as it could shorten the period of EMIs.

Prepay your loan

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This could happen if your salary gets hiked or maybe getting promoted. Where you can use the hike to your advantage by prepaying all of your loan within less months so it will bring down the principal amount and tenure as well. However, this can reduce the interest portion.

Hope that I have covered all the topics in my article about ways that you can follow to reduce EMI on Car loan. Thanks for reading!