Keeping track of your Car Loan balance is essential for effective financial management. By knowing how much you owe, you can plan your repayments better, avoid any surprises, and stay on top of your finances.
Why it is important to track your Car Loan balance
Financial awareness
Keeping track of your Car Loan balance allows you to understand how much you owe at any given time. This awareness of your financial obligations is crucial for effective budgeting and financial planning.
Timely payments
Monitoring your Car Loan balance helps ensure you make payments on time. Missing payments can lead to late fees and negatively affect your credit score. By regularly checking your balance, you can plan and allocate funds appropriately, preventing late or missed payments.
Interest management
Car Loans accrue interest over time, and the more you owe, the more interest you will pay. By keeping an eye on your loan balance, you can calculate the interest on the outstanding amount and strategise to make additional payments, thus reducing the overall interest burden.
Credit score maintenance
Your credit score is significantly influenced by how well you manage your debt. Making timely payments on your Car Loan positively impacts your credit history. Regularly checking your balance helps you stay on top of your payment schedule, which in turn safeguards your credit score and boosts your financial credibility.
Early repayment opportunities
Knowing your Car Loan balance can open up opportunities for early repayment. If you have extra funds, you might consider paying off a portion or the entire remaining balance before the loan term ends. This strategy not only saves you money on future interest payments but also grants you financial freedom sooner.
Ways to check Car Loan balance
1. Online banking
- Log in to your bank’s online banking portal.
- Navigate to the 'Loans' section.
- Select your Car Loan account to view the balance and other details.
2. Axis Mobile app
- Download your bank’s mobile app from the app store.
- Log in with your credentials.
- Go to the 'Loans' section, select Car Loan and view balance and other details
3. Customer service
- Provide your loan account number and other required details.
- Ask the representative for your Car Loan balance.
4. Bank branch visit
- Go to your bank branch with your ID and loan account details.
- Request the loan officer to provide you with your Car Loan balance.
5. Monthly statements
Most banks send monthly loan statements either through email or post. These statements include your Car Loan balance along with details of the payments made and the interest accrued.
Practical tips for managing your Car Loan
Set up auto-payments
Automate your EMI payments to avoid missing due dates and incurring late fees. Setting up auto-payments ensures that your monthly instalments are paid on time, giving you peace of mind and helping you maintain a good credit score.
Maintain a buffer fund
Keep a small emergency fund to cover unexpected expenses or shortfalls. This buffer fund acts as a financial safety net, providing you with the flexibility to manage any unforeseen circumstances without disrupting your Car Loan repayments.
Stay informed
Regularly check your Car Loan balance and Car Loan interest rates to stay updated on your financial status. Staying informed about your loan details helps you plan your repayments better and make informed decisions, such as considering refinancing options if interest rates drop.
Also Read: Finding your way to a Car Loan with low CIBIL score
Conclusion
Keeping track of your Car Loan balance is essential for effective financial management. Additionally, using tools like the Car Loan EMI Calculator and monitoring Car Loan interest rates will help you manage your repayments efficiently.
Axis Bank offers a range of digital tools and services to help you manage your Car Loan effectively. With benefits such as attractive interest rates and up to 100% on-road funding, Axis Bank’s Car Loans can make your dream of owning a car a reality. Make sure to use the Car Loan EMI Calculator to find out your EMI and plan your finances accordingly
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
