Are you tired of waiting for public transport or making several calls to the friend who was going to pick you up? Being in such a situation can be frustrating as it disturbs your entire day’s schedule. You may want to own a car in that case. It eliminates the dependency on public transportation and others for travelling. Vehicle ownership also promises incredible travel convenience and comfort.

Earlier, there were limited options that only the rich could afford. Today, the car category is broad. You can find both budget and luxurious cars. No matter which car you want to buy, consider financing it with an Auto Loan. It is a simple and affordable financing option. It lets you borrow a reasonable amount at a competitive interest rate for your preferred tenure. You can repay the Loan in equated monthly instalments without feeling burdened.

Car Loans are a long-term commitment. The earlier you get done, the better, as it lets you be stress-free. Here are practical tips and tricks to repay your Car Loan early:

Get a reasonable Loan amount

Firstly, get a Loan amount you really need and can afford to repay. Consider your dream car’s purchase value to know the amount you require. Review your monthly income and financial obligations to gauge your affordability. Furthermore, check your eligibility, as all banks extend a suitable Loan amount based on the same. Improve your Auto Loan eligibility to obtain a decent amount at a competitive interest rate.

Prioritise repayments

Create a priority repayment list if you have multiple ongoing Credit Cards and Loan repayments. Stick to the list to avoid high-interest accumulation and repayment defaults. Consider keeping your repayment at the top of your priority list. This lets you repay the Loan without incurring high Car Loan interest rates and prolonging the repayment tenure.

Round off the payable EMI amount

The payable EMI amount includes a component of the principal amount and the other of the interest incurred. Calculate the payable EMI by doing manual calculations or use the Car Loan EMI calculator. Suppose the payable EMI is Rs. 18,000. Consider rounding off to Rs. 20,000. You can repay a significant percentage of the principal amount by rounding off the payable EMI. This reduces your overall interest liability, helping you repay your Loan faster.

Opt for a Balance transfer

Car Loan interest rates are a key factor that influences repayments. The lower the interest rate, the more affordable your repayment, and the faster you can cover it. You can opt for a balance transfer to benefit from lower rates. Banks also provide a Top-Up Loan amount when opting for a Balance Transfer. You can use the Top-Up amount to finance car repair or refurbishment.