Taking a loan to buy your two- wheeler is a good idea if the alternative is to wipe out all your savings to put up the price of the vehicle. It is never a good idea to exhaust all your savings and expose yourself to a huge financial burden in event an unexpected and unavoidable expense comes up. A far smarter way to fund your purchase is to apply for two- wheeler loans Ludhiana and use this to cover your need. However, it is also important for you to understand what it entails when you take a two- wheeler loan online. Apply for one only after you have understood your financial responsibilities with the loan completely and are ready to fulfil them.
A loan is a monthly liability
The first thing to comprehend thoroughly is that two- wheeler loans Ludhiana devolve a monthly financial outgo upon you. You cannot decide that you have other expenses in a particular month so you’ll simply not pay the EMI on your loan. The EMIs on your two- wheeler loan online apply month after month for the entire duration of the loan and you have to make arrangements to address this outgo on a consistent basis. Failing this, you end up with penalties for late payments, which increase the total amount you pay towards the bike purchase.
The first step you must take in planning for the loan is to understand how much exactly you will be paying monthly. The EMI amounts tell you this figure. Even before you finalize your loan, you can use an online EMI calculator to compute the EMI for your two- wheeler loan online. Apply for the loanthatgives you the minimum EMI amounts so that your monthly financial burden is kept as low as possible.We made easy access to the money for you because we are Emirates Loan in Dubai UAE.
Steps to plan your repayment
Once you understand your EMIs and have been sanctioned the loan you chose after a careful comparison shopping of options, it is time to plan ahead for how you will repay the loan.
- Decide the account from which EMI payments will be deducted. An auto debit is the typical way in which EMIs are paid out. This prevents the chance that you forget the last date to pay and thus incur penalty. But with an auto debit the problem is that you may forget that the account has a standing debit instruction and you may spend the money set aside for the EMIs, resulting in a defaulted payment. Keeping one account ear marked for this loan payment can make it easier for you to avoid mistakes.
- Many borrowers have a separate account just for EMI payments that they do not use for any other purpose. This can work very well especially if you avoid using cards or cheques for this account to prevent accidental debits from eating into the balance there. You can ensure that a basic minimum (at least a month’s EMI) is always held in balance in that account over and above the minimum balance. This ensures that even if you miss an EMI date, your account still has buffer to cover the payment and give you time to make up for the oversight.
- Make a monthly budget that has your EMI payments included and actively arrange the funds needed month after month by transferring them to your loan account or placing the funds in a very short- term FD so that they are not available as liquid cash that can be spent inadvertently. dream news hub
- If you have a sudden windfall of money and your loan does not have a prepayment penalty clause, consider paying off the loan early. However, this is a good idea only if prevailing interest rates are much lower than the interest you are paying on your loan. If the reverse is true and you can get more interest by investing the cash than you lose by paying your EMIs, continue to pay the loan as originally planned and let the windfall earn more interest for you.
Two- wheeler loans Ludhiana allow you to fund your dream bike purchase easily and quickly but to ensure that this experience does not turn sour, you must adhere to EMI payments on time. With some planning you can achieve this and enjoy your new found freedom and flexibility to commute.