How to plan the EMI for a Two-Wheeler Loan that Suits Your Pocket Capacity?
Getting car or two-wheeler loans has become easy with the lenders simplifying the whole process. Besides offering quick and easy loans online via their websites, banks like IDFC First have launched their mobile app for the convenience of the customers. This app allows you to apply for a personal loan, self-employed professional loan, two-wheeler loan, and a lot more in a few simple steps. The app also allows you to apply for EMI-based loans and choose an EMI option that suits your pocket. Read on to know more.
EMI and its Calculation
The basic rule of borrowing is that you should take a loan only if you have the capacity and the capability to repay it. So, if you are looking to take a loan for buying a car or a two-wheeler or a personal loan to fund any expenses, be sure that you will be able to repay the EMIs. The EMI refers to the Equated Monthly Instalment that you will need to pay to cover the loan amount and the interest on it.
Before you apply for a personal loan or any other loan, you need to review your financial position, expenses- both current and future and your savings. This will give you a rough idea about how much you can shell out every month for paying the EMI. You will also need to review your monthly expenses, save for contingencies and savings.
You can easily calculate the EMI for your loan amount through the loan apps of your bank. This requires you to fill in the principal loan amount that you are seeking, the interest rate being charged by the lender, and the loan tenure or duration for which you need it. The EMI can easily be calculated by using the EMI calculators that are available online or on your lender’s app or website. The calculator will instantly calculate and provide you with the EMI that you will have to pay for a specific loan amount for a specific duration.
Tips to Keep EMI Low
Some tips to ensure that your EMI is low:
- Compare the interest rates being charged by different lenders and choose the loan with a lower interest rate. This will ensure that your EMI remains low.
- Another way to get a loan with a lower EMI is to take a two-wheeler loan from the bank where you already have an account. Since the lender knows your credentials and is aware of your repaying capacity, you are likely to get a loan at favourable interest rates thereby ensuring that your EMI is affordable.
- Choose a flexible EMI repayment plan wherein the lender allows you to pay lower EMIs in the beginning and increase the same as your repayment capacity increases.
To conclude, planning is a must for ensuring that you’re the EMI for your two-wheeler loans or personal loans do not strain your pocket. All that is required is being disciplined in your expenses and setting aside a specific amount regularly for EMI payments.
Planning EMI Payments
Now that you have a fair idea about the EMI that you will need to pay for your bike loan, you have to take stock of the funds available with you. Here are the steps for planning your EMI in such a way that they do not strain your pockets.
- Step 1 involves listing out all your expenses, analysing them, and identifying the ones that can be reduced or done away with.
- Try to keep a separate account for the payment of all your expenses and keep aside a certain amount for meeting contingency or unexpected expenses.
- A smart way of ensuring that you do not miss your EMI payment is to open a separate account for servicing the loan. Transfer all the amount that you are saving or keeping aside for paying the EMI to this account.
- Use any additional income or savings that you have in a month to pay a higher EMI.
To conclude, take a two-wheeler loan or any other loan only if you have the capacity and capability of repaying it. Finalise the EMI amount after checking your finances and go for disciplined spending to ensure the timely payment of your instalments.