If you have bought a car by taking a car loan, you are probably paying out heavy monthly installments. This can be a big burden and leave you with very little disposable income in your hands. You may thus have to compromise on other domestic or personal expenses. So, you would probably be thinking in terms of repaying your car loan early, which you may have taken on a high car loan interest rate. The money you will eventually save by paying your car loan early can be used for a number of things, including building a retirement corpus. Let’s see how you can go about repaying your car loan early by following the steps outlined below:
You Could Rent Your Car Out on Off-Days to Make Some Cash with It
You can rent out your car on the days you are not going to use it at a fixed minimum charge a day. This way you will be earning extra moneyout of your car, which you can use to make early or extra EMI payments on your car loan. Use a car loan calculatoronline to check out how much your car loan interest rate is and try to minimize it by paying up early.
Pay Fortnightly Instalments, Instead of Monthly
Instead of monthly instalments, pay a half-instalment every fortnight if your lender allows it. On the face of it, this may seem to be the same thing, but since there are 52 weeks a year, you will be paying 26 half-instalments, which is one whole instalment more than the 12 monthly instalments. At the end of the day it adds up to speeding up your repayment process. You can check it out in the numerous online car loan calculators. If you have taken a 5-year loan of $10,000 to buy your car, you will realize that you end up repaying your car loan 6 months ahead of schedule. That’s some saving!
Use Your Car as A Billboard
If you are not too finicky about the looks of your car, you can plaster it with advertisements and earn some extra money from it. You can pay all of this extra money towards the repayment of your loan. This is a win-win situation. You get paid for driving your car! It will also free up your loan much sooner that scheduled, so that you can have some extra cash on hand to make other necessary purchases.
Refinance Your Car Loan with A Lender Charging A Lower Car Loan Interest Rate
Lastly, keep an eye out for on the car loan interest rates, as they keep fluctuating. The moment the interest rates go down, you could get your loan refinanced by a lender offering a lower car loan interest rate.
Now You Can Get an Instant Loan of Rs 2 Lakh from PaySense
It is now easier than ever before to get an instant loan of up to Rs 2 lakh. Thanks to PaySense, you get this loan on the spot whether you are at home or on a commute, by using their web and mobile apps. These apps are very user-friendly and you can use them without anybody else’s help. It is an ideal loan to take if you wish to repay your car loan earlier than scheduled.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs