Easyway to manage Loan : Despite the horrors of Corona decreasing, people are still avoiding traveling in public transport. Instead people are preferring to travel in personal vehicles. This is the reason why there has been a new boom in the sale of cars in recent times. Along with this, the car loan portfolio of banks has also started looking better. Obviously, the number of car loan customers is increasing. If you are also going to take a car loan, then you must keep some things in mind. Let us know what are these important things, by following which you can manage the car loan in a good way.
1. Make a budget before taking a loan
Before buying a car, decide its budget. Decide which car you are going to get. Industry experts say that before buying a car, people do not calculate secondary expenses, such as car insurance, petrol-diesel expenses, repair expenses, depreciation etc. Because of this their expenses increase. Keep this cost in mind
2. It is important to maintain a good credit score
Not only a car loan, but a good credit score is required to take any kind of loan. Good credit score can provide you cheap and easy loan. Timely repayment of credit card dues and other loans adds to your credit score. Hence it is important to maintain a strong credit score.
3. Decide which car to buy first
Cars are not bought very often. So before buying, decide where the best deal is available for you. Experts believe that the customer should choose the car according to his need. Not the very expensive and most popular car, you should choose your option keeping in mind. If someone is getting a car of the same feature in a cheap offer of a company, then it should be selected. With this you will be able to buy a car even in less loan. This will definitely reduce your EMI burden.
4. The bigger the downpayment, the better
The higher the downpayment while buying a car, the lesser will be your EMI burden. Large downpayment will reduce both the principal and interest component of the loan. The lower the principal amount, the lesser the monthly installment you will have to pay on the car loan.
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5. Keep the loan tenure short
Usually banks try to keep the tenure of the car loan longer. Banks argue that this will reduce your EMI. But remember that even if the EMI is low, you end up paying more money to the bank by paying off the car loan for a longer period. The shorter the tenure of the loan, the lesser you will have to pay both the principal and the interest component on the loan.
6. Pay EMI on time
It is your responsibility to pay the EMI on time after taking the loan. This will not only improve your credit score but also your relationship with the bank as a customer. Experts believe that customers should adopt a disciplined approach in the matter of loans. The sooner the loan is cleared, the better.