When you have decided to take a loan for two wheeler, you should understand how important it is to responsibly fulfil the obligation you have undertaken. Delayed repayments or failed repayments can prove to be very costly affairs. They can cost you the vehicle itself if it is repossessed by the financier.
Else, it can result in escalating the cost of the loan overall by means of penalties applying on late payments. That is why, when you opt for two wheeler loans Coimbatore, you should be prepared beforehand to handle the repayments with no hassle at all. But there is no cause for worry. Here are a few tips that will hep you repay your loan in the right way, right on schedule so you can enjoy your brand new bike to the fullest.
Repayment tips for two wheeler loans Coimbatore
Are your repayments manageable?
The first step towards timely repayment of your loan for two- wheeler starts even before you sign up for the loan to buy the bike. Thoroughly understand the terms and conditions of the loan, especially the repayments. Ask the lender to confirm exactly what you will be paying each month by way of instalments (EMIs) on the loan. Evaluate your finances as well. Make sure you compare the EMIs with your monthly earnings so that you know if you can easily manage the EMI payment without disruption.
Make a budget so that you are aware of all your monthly expenses that have to be met from your monthly income. What is left over must cover your EMI and then leave some cash over for contingencies and also at least minimum savings. If the EMI you are looking at is not affordable when you look at your finances this way, go for a lower EMI by tweaking other terms of the loan. In short, ensure that your repayment is affordable and manageable even before you take responsibility of the loan.
Opt for longer terms
The magnitude of the EMI you have to repay on the loan hinges on the term of the loan too. The longer the term, the lower the EMIs because the payment is spread over a much larger number of instalments. However, the overall cost of your loan goes up with a long term- small EMI loan.
But if you cannot afford a big EMI, do not hesitate to go for long term loans that will ensure that you can keep up repayments without fail. A delayed repayment or failed payment not only risks your ownership of the bike but also puts a black mark against your creditworthiness. Taking up an affordable EMI at the outset is your priority and to do that if you need to opt for longer terms, choose this option.
Often, borrowers just forget repayment dates and pay heavily for the negligence. You cannot afford to be negligent in the matter of financial responsibilities at all. Becoming more disciplined in these matters is a simple way to avoid hassles with not just your repayment for your loan for two wheeler but it will help you in life too. Financial discipline is a valuable quality to have and your bike repayments can nurture this habit in you.
Make a chart with your repayment dates and put it up where it is visible every day. Mark off each repayment as soon as you make it. You can also set the reminder on your email or phone calendar so that you never miss the EMI date. In fact, set your reminder a few days before the repayment due date so that you can arrange for funds in case your account is falling short.
Before you take up any financial obligation, you must lay the groundwork for it by mentally gearing yourself up to fulfil it with commitment. Taking two wheeler loans Coimbatore can help you reduce your commute time and effort substantially but you get the best out of this experience only when you repay the loan on time and make the process hassle-free. Make sure to implement these key tips so that your new bike purchase is a seamless and enjoyable experience all through.