Owning a car is a significant financial commitment, often necessitating the use of a car loan. While the joy of driving a new or pre-owned vehicle is undeniable, the responsibility of managing a car loan demands attention. One crucial aspect that should never be overlooked is the regular tracking of your car loan balance amount.
7 reasons why it is important to track car loan balance
Financial awareness: Keeping tabs on your car loan balance is not just about numbers; it is about financial awareness. Understanding how much you owe at any given time allows you to maintain a comprehensive view of your overall financial health. This awareness is fundamental for effective financial planning and budgeting.
Timely payments: A primary reason for monitoring your car loan balance is to ensure timely payments. Missing a payment can lead to late fees and negatively impact your credit score. By regularly tracking your balance, you can plan and allocate funds, accordingly, avoiding the pitfalls of late or missed payments.
Interest management: Car loans come with interest, and the more you owe, the more interest accrues. Tracking your balance allows you to calculate the interest on the outstanding amount. Armed with this knowledge, you can strategise to make additional payments, reducing the overall interest burden over the life of the loan.
Credit score maintenance: Your credit score is closely tied to your ability to manage debt responsibly. Timely payments on your car loan positively contribute to your credit history. Regularly checking your balance ensures that you are on top of your payment schedule, safeguarding your credit score and enhancing your financial credibility.
Early repayment opportunities: Knowing your car loan balance presents opportunities for early repayment. If you have surplus funds, you can consider paying off a portion or the entire remaining balance before the loan term ends. This not only saves you money on future interest payments but also provides financial freedom sooner.
Prevention of default: Regular monitoring helps identify discrepancies or errors in your loan statements. Addressing such issues promptly is crucial in preventing misunderstandings that could lead to default on the loan. Being proactive in this manner safeguards your financial standing.
Loan closure planning: Being aware of your car loan balance allows you to plan for the closure of the loan. You can set financial goals to pay off the remaining balance ahead of schedule. This will provide you with financial freedom and reduce the overall cost of the loan.
Bajaj Finance provides two types of car loans: one for used cars and the other for new car purchases. The used car loans cater to those seeking funds for buying pre-owned vehicles, while the new car finance option provides funds for the purchase of brand-new cars. You have the flexibility to choose the loan product that aligns best with your specific requirements.
Additional Read: How to calculate car loan EMI amount
How to check car loan balance
If you have opted for any of our car loans, you can view your ongoing loan details by visiting our customer portal – My Account. You can check your car loan balance amount, EMI due date, and other details by signing-in to our customer portal. Follow these simple steps to check your car loan balance.
- Go to our customer portal – My Account on the website.
- Enter your registered mobile number and the OTP to sign-in.
- Verify your details by entering your date of birth and proceed.
- Select the loan account for which you want to view details.
Alternatively, you can check your ongoing car loan balance by downloading our app.
In conclusion, tracking your car loan balance is not merely a financial chore; it is a proactive approach to financial management. It empowers you to make informed decisions, avoid financial pitfalls, and work towards achieving your broader financial objectives. By staying vigilant and engaged with your car loan balance, you are taking a crucial step towards a more secure and financially sound future.
