Getting an approved online car loan in itself is a privilege enjoyed by the middle class, especially for people who have been riding two-wheelers all their lives and now opt for a four-wheeler loan to give a safe, secure and comfortable commute to their families. Buddy Loan helps you avail the best four-wheeler loan with lower interest rates and no collateral.
Many people apply for a Buddy Loan to apply for car finance online; we understand that a four-wheeler these days is more of a necessity than a luxury. You can apply for a car loan online from various institutions, including banks, NBFCs and other financial enterprises at a low-interest rate, a payable EMI as per the income of the borrower and a fixed long tenure to ease him.
Being in a debt of a high-end Buddy Loanis stress for many, and despite attaining a personal car loan on a low rate of interest, the high EMI and the long tenure can be quite traumatic for an average family man who has a low income.
Many opt for the prepayment option for debt riddance and instead go for long term savings. Provided there are no prepayment penalties, the borrower can choose from a full prepayment of his buddy loan, a foreclosure, or even part payment. Although this needs to be realised that small part payments will have no positive effect on the total amount of rate of interest, instead it will only deprive a layperson of his little savings and cause financial disabilities giving no benefit of prepayment of buddy loan.
They prefer to silence their luxuries and stick to bare minimum essentials to prepay the Buddy Loan that carries a considerable percentage in their monthly salary or income.
Prepayment helps in many ways:
The freed-up money can be used for other enticing investment options or long term savings, which otherwise would go in the payment of the car finance online.
This also ensures a lower rate of interest in the remaining instalments of the buddy loan. Rate of interest that is calculated on a pro-rata basis reduces cumulatively and the benefit of an alleviated interest charge can be enjoyed by the borrower in the latter EMIs.
Prepayment of personal car loan leads to lower stress, better standard of living, debt-free lifestyle with a disciplined culture of incurring the expenditure.
Full payment or even a part payment of the online car loan eventually leads to a good credit rating as it displays your paying capacity as a borrower.