We live in a country where cars are the second-most costly purchase after a home. When you choose a car model, you need to arrange for funds to buy it. Sometimes, it may also involve sacrificing your future savings and investments. Though cars are no longer a luxury, you still require adequate savings to buy them.

When you apply for a car loan, you essentially pledge a sizeable part of your income for a medium to an extended period. Knowing how to pay it off faster makes a lot of sense in finance and the ability to pursue your dreams. If you plan to buy a new car, you can always search for loan options with banks and lenders.

Here are some tips to help you pay off your loan responsibilities quicker than usual:

1. Work out a payment schedule: Begin chatting with your financier and start working out a payment schedule that can help you repay part of the loan on a bi-weekly basis. This arrangement works out quicker than regular monthly payments, given the number of weeks in them. 
   
   
2. Pay it off in a lump sum: In most instances, you are likely to get a lump sum payment from one or more sources each year. It could include bank deposit maturity, dividend receipts, or even a bonus from your workplace in appreciation of all the effort. Instead of spending these funds elsewhere, you can invest them towards repaying your auto loan. 
   
   
3. Try to earn extra income: Whether you are working on different assignments or projects besides your profession or earning extra income from various sources, you can always contribute to paying off your auto loan. You can start saving the rest of the income after the tenure and relieve yourself from liabilities. 
   
   
4. The rounding off approach: You could even try the rounding off method to repay your car finance. You can do so by increasing the monthly loan payment outgo to the nearest 5,000 or 10,000 marks. The increase may look tiny and would not pinch much. But over the long term, it will pay off spectacularly.

Four-wheeler buyers can enjoy the rides in their new vehicle without worrying about any financial burden. With a systematic approach towards loan repayments, you can manage other expenses and necessities without compromising them.

Banks and moneylenders have specific eligibility requirements which you need to fulfil to get the loan amount. They assess your repayment capacity through your income, CIBIL score, and repayment history to check whether you are a responsible borrower.