Car loan helps you purchase your dream car. But, once you have gotten the car, the biggest issue is repaying the loan. You cannot afford to not pay back the loan as it would lead to your being repossessed by the lender. However, there are few tips and tricks to manage repayment of your car loan interest rate. Still, another key issue that remains is whether you should pay off your loan or should you continue with the car loan. Well, it depends on an individual case basis factoring upon numerous aspects that impact the decision. The aspects that impact the decision are:
Factors that Affect the Repayment of Car Loan
The factors that decide whether you should completely pay off your remaining car loan or whether you should continue making the payment through EMIs depends on the following:
- Your income and financial health
- Any considerable expenses in the future
- Tenure of the loan
- Amount of the loan outstanding
- Any fee that the lender might levy on you for paying off your loan
- Is there tax exemption on car loan
So, now that you know the factors that you should consider, you should also calculate the difference between the amount you would incur if you pay off the loan and if you were to continue paying EMIs. You also need to remember that not all car loans are eligible for tax exemption; only commercial vehicles are tax exempted.
Instant Car Loans Just A Few Taps Away
Well, you should now be able to know whether you should pay off your car loan or continue paying the EMI. That particular decision would be totally up to you. However, if you are thinking of applying to a bank for the car loan, then you should reconsider. One of the reasons that you should reconsider is because the car loan interest rates may be low but the banks take a lot of time in approval. Additionally, some banks also do not allow the loan to be used for buying used cars. On the other hand, PaySense offers instant loans without any hassle. Additionally, you can also use the loan to buy a secondhand car or make repairs to the car, if required.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs