Paying the bike loan faster helps in lessening the financial burden of the borrower. The sooner you pay the two wheeler loan the better. One can go for prepay your loan option. To prepay your loan of banks or financial institutions will charge some amount of fee. It is possible to prepay your loan only when you have some surplus amount other than your fixed monthly income.
Below are the methods to pay your bike loan debts faster:
1. Make Use of Excess Money-
Few times people get money which they didn’t expect. For example: Bonus by the employer, old debt settled by friend etc. People should use such amount instead of wasting it.
2. Choose Auto Payments-
Few banks and financial institutions offer discounts if borrowers choose auto payments as it saves a lot of paperwork and time. It will also help in saving some money.
Additional Read: Bajaj 100cc Bike
3. Make Prepayment-
Though financial institutions may charge a penalty on prepayment, most lenders don’t mind a couple of extra installments per year. So, take advantage of that. Just in case, you’re capable to fully settle the loan, make ensure the savings you’re making via prepayment is somewhat more than penalty charged.
4. Negotiate Repayment Terms-
It is one of the most important step to negotiate bike loan interest rate, amount, tenure. One shouldn’t hesitate because any bank or financial institutions don’t want to let go of an eligible borrower.
5. Focus on Other Sources of Income
If your monthly income is not enough to pay off the bike loan then generate some other sources of income. This will help you in paying your loan faster.