Tips For Completing Your Two-Wheeler Loan EMI Easily

One of the most popular reasons for the popularity of bikes is that they are stylish. Of course, easy maneuverability on the congested roads of cities or uneven roads in smaller towns and villages adds to their popularity. However, owning a bike is not affordable for many. Getting financial help is a step taken to ease the burden. Two-wheeler loans are among the most popular credit options in India as it is easy to repay the amount in easy EMIs.

Due to intense competition, you can get a bike loan at low-interest rates with minimum hassle. However, you need to ensure that you will be able to make timely repayments for your loan to avoid penalties.

Top 5 tips for making your two-wheeler loan EMI repayments

To manage your two-wheeler loan correctly and save on interest, you can check out this list of tips.

  1. Plan your EMI:

At the time of applying for a loan, use the EMI calculator to know the EMI you are required to pay. It is important to remember that missing out on a single EMI leads to a penalty. It also leads to a loss of credibility. Hence, it is important to plan your EMI payments. For example, your salary is paid on the 7th of every month. But, your EMI is due on the 25th of the month. As soon as you receive your salary, it is important to keep your EMI payment aside and use the rest of the salary for your day-to-day and other expenses.

  1. Opt for automated payments:

Automated payments can help make the repayment process seamless and allow lenders to save time and money on paperwork. The amount due to the lender is deducted and paid on the selected date. It allows you to keep your focus on other aspects of your professional life – but you must ensure that there is a sufficient amount in your account for a deduction. If your funds are insufficient, you may get a reminder from the NBFC to help you avoid a penalty.

  1. Use surplus money for part payment:

At times, we get unexpected cash flow either due to reduced expenditure or bonus income. You might get money back from your fixed deposit maturity, or from a friend who cleared an old debt. There can be numerous ways you can get that surplus money unexpectedly. You can use the extra money to pay off a small part of the principal amount. It will help you save a lot of money on interest.

  1. Round off odd payments:

Rounding off your payments can help you save money on the interest of your bike loan. It is a practical yet straightforward move that does not harm your budget much. For example, if your two-wheeler loan EMI is INR 2,770, you can round it off to INR 3,000. In this case, you pay an additional INR 230, and it won’t harm your finances, while it can reduce your overall interest in the long term.

  1. Make prepayments:

Many people wrongly assume that prepaying the loan is a good idea. In fact, it depends on the loan amount and the remaining number of EMIs. It is always better to take the help of a financial expert to help you understand the implications of prepaying the loan or continuing for the full tenure. It does save on interests, but your prepayment penalty may be higher than the interest that you need to pay. Your financial income vs expenses also matters while finalizing the prepayment of your two-wheeler loan.

Making prepayments can help you save a lot on the interest amount. Although many lenders charge prepayment penalties, you can check out the amount you would have to pay versus the money you will save by making a prepayment. Further, in some cases, your lender may allow you to make a prepayment of a few extra installments without penalty. So, make sure to check the prepayment policy before applying for a two-wheeler loan.


With the easy accessibility of bike loans, people of all ages are capable of fulfilling their dreams and buying the bike of their dreams. Loans today can be availed with the minimum hassles and with the help of apps. But, you need to do your research. Look for a lender who meets your prepayment. Make timely repayments so that you don’t have to spend extra from your pocket. The two-wheeler loan tips mentioned in this article will help you save money on your two-wheeler loan and guide you with the right ways to manage it without much hassle.