Steps to Reduce EMI of Your Two-Wheeler Loan

Two-wheelers are an ideal mode of transportation for Indian roads because of their manoeuvrability, size, and wallet-friendly fuel consumption. For a major percentage of the Indian population, a two-wheeler is a necessity that they can afford. So, opting for a two-wheeler for day-to-day commute is considered a viable option. Even though two-wheeler loans have become accessible to everyone, the borrower needs to know the ins and outs of the loan to enjoy its utmost benefits.

Assess Your Financial Health

Even though knowing your financial ability is the most basic step, it is the most important one too. Analyse your financial strength and decide the amount that you are willing to spend on automobiles. Knowing this will not only let you set clear goals but will also narrow down your motorcycle options.

Make Use of EMI Calculators

After knowing your wallet strength, calculate your potential EMI using an EMI Calculator. An EMI calculator is a self-help financial planning tool that lets you calculate your EMI based on your financial ability and loan amount requirement. Just enter the loan amount, expected interest rate, and tenure in the calculator to arrive at an estimated EMI amount. This will give you clarity in drawing your financial plans.

Longer Tenure & Higher Down Payment

For more affordable EMIs, choose a longer tenure. However, it should be remembered that shorter terms typically have lower interest rates while longer terms have higher interest rates. Also, consider going for a higher down payment which can also take some weight off your shoulders.

Lender Relationship

When you’re a long-term customer of a particular lender you may get attractive interest rates which will eventually lead to lesser EMIs. Often this trust between you and your lender is built over the years by paying off dues in a timely manner. You can also negotiate with your lender for a lesser interest rate. Most lenders would be willing to do that to increase brand loyalty and maintain customer relationships.