![]() ![]() Note that persistent skipping inflicts the risk of default, and in such a case, your car hypothecated to the bank as collateral for the Car Loan, may get seized. As a result of skipping the EMI, the tenure of the loan would increase Yet, in case of insufficient balance or any other reason you skip your EMI, the bank will caution you and may charge a late payment penalty. Hence, in the interest of your financial wellbeing, borrow wisely and as far as possible do not skip your Remember, skipping EMIs does not reflect well on your creditworthiness and could impact your credit score. Opting for SI or NACH/ECS mode is preferable as it is faster and less prone to errors than PDCs. ![]() Post-Dated Cheques for your Car Loan EMI is also an option if you do not hold an account with Axis Bank and for non-ECS locations.National Automated Clearing House (NACH)/ECS mandate can be used if you do not have an account with Axis Bank and would like your EMIs to be debited automatically at the end of the monthly cycle.Your EMI will be automatically debited from the account you specify. Standing Instructions (SI) can be used if you have a savings account, salary account, or current account with Axis Bank. ![]() This is because ĮMIs are computed on a reducing balance method, which works in your favour as a borrower. So, consider opting for longer loan tenure when you avail a Car Loan so that repayments can become comfortable.ĭo note that during the initial months of the Car Loan tenure, you pay more towards interest, and gradually, as you repay the loan, a higher portion is adjusted towards the principal component. ![]() Higher the interest rate on the loan, higher will be your EMI and vice-versa. Remember, the interest rate and your loan tenure are the vital deciding factors for your loan EMI.
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