How can farmers reduce EMI on used car loan?

Here are some tips farmers can use to reduce their Equated Monthly Instalment (EMI) on a used car loan:

• A down payment reduces the principal loan amount, which directly lowers the EMI. Strive to put down 20% or more if possible.
• Used car loans often last 5-6 years. Opting for a longer tenure means lower EMIs by spreading repayment over more months, though interest costs increase.
• Some financial institutions provide discounts to farmers and loyal customers. Offers can include processing fee waivers, interest discounts for first-time buyers, and other incentives that effectively reduce EMIs.
• The loan amount, and hence EMI, tends to be lower for older cars compared to newer and more expensive used cars.
• Choose a fixed-rate loan instead of a floating-rate loan, as the EMI amount will remain constant for the loan's tenure under a fixed rate.
• A higher credit score makes farmers eligible for lower interest rates, directly resulting in a lower EMI. Steps to improve credit score can be taken before the loan application.
• Opt out of additional loan-related products like extended warranties, which raise the financed amount and EMI. Keep the loan amount focused only on the car purchase itself.

Following one or more of the above pointers can help farmers arrange a relatively affordable used car loan EMI and interest savings.