Most Indians seek to own a vehicle, be it a bike or a car, essentially due to the few functional advantages it gives. Nonetheless, not all individuals have sufficient liquid money available to buy a bike or a car by paying for it upright. The most ideal alternative, therefore, is to get a loan to finance your dream bike. Throughout the time, getting finance for bikes has gotten convenient and simple. Depending upon the lending institution that you approach for credit, you can get a loan of up to 85% of the bike’s cost or sometimes, even up to 90-95% of it. This can undoubtedly help you purchase the bike you desire, and afterward pay off the debt in reasonable EMIs.
If you are considering how to pay bike loan easily, here are a few fundamental things you should know, which will assist you with accomplishing it.
Since you have chosen to avail a bike Loan, it is important that you know the EMIs of the same as there are many benefits of bike loan.
An EMI Calculator can help you evaluate this on your fingertips. This EMI calculator gives you specific estimations of your monthly payments in a few seconds.
Let us get to understand this with the help of an example below. Assume that Pranav, a 28-year-old HR Manager by profession is looking forward to availing a bike loan of ₹1 Lakh. One lender has consented to bring to the table a similar loan sum at a financing cost of 11% per annum for a tenure of 5 years. Before going ahead with the process of availing this loan, Pranav needs to know the specific amount of EMI he needs to pay to the lender. He needs to know if his monthly payments are pocket-friendly or not. Subsequently, for that, he can use a bike loan EMI calculator and get to know the result.
There can be three scenarios in which a customer will select his/her EMI plan.
So, choose your EMI plan wisely as per your requirement and make sure that it does not overload or underload your pocket.
Selecting the service of auto payments will save you a great deal of time and paperwork. A particular sum is deducted on a predetermined date each month from your bank account. So, even if you happen to forget it due to your hectic schedule, you are saved from the penalties of defaulted payments for the particular month as the amount gets deducted automatically for bike loan.
Sometimes during the duration of paying back your bike loan, you might unexpectedly get some funds – for example, it could be from a fixed deposit getting matured or your boss giving out a reward or bonus. You can utilize such surplus sums to repay the bike loan instead of going on a shopping binge.
According to this rule, an individual ought to spend 50% of his income on basic necessities, 30% on desires, and 20% on savings. This methodology conveys your finances towards various objectives in a viable manner. When you are saving, you should make an emergency account, which can be utilized to take care of the bike loan clearance. This way, you can make additional instalments and dispose of the debt faster.
It is quite a practical move. Assume that your EMI every month is around ₹1,700 consistently. You can opt to pay ₹2,000. The extra ₹300 every month will not damage your financial game and you will be paying off extra ₹3,600 every year.
With these significant tips, you can pay off your bike loan easily. Soon, you will be free from debt and soon you can be on your path to extra savings, while also enjoying your bike riding experience.