Many want to buy a motorbike of their choice. But not all have the money to buy it. To buy a good bike in India, one would have to spend around INR 30,000 to INR 2.78 lakhs. Bike loans are for those who have their heart set on a particular bike but cannot buy it due to the lack of finances. It is easier for individuals to buy their dream bike without paying the total amount at once.
Many lenders offer two-wheeler loans at competitive interest rates and zero down payments. But choosing one among them is challenging given the offers look similar most of the time. If you are looking for a two-wheeler loan but do not know how to choose the lender, this article is for you. Check out the basic steps to follow while choosing the right financial institution for your bike loan.
Below are the 5 Tips to Get The Two Wheeler Loan:
Check the Eligibility Criteria
The first criterion to get the right two-wheeler loan is to determine if you meet the lender’s eligibility. The eligibility criteria are easy to meet. However, it is necessary to ensure that your profile aligns with the lender’s expectations. Lenders approve only the loans of those applicants who meet the eligibility criteria, and hence it is vital to select such a lender.
Determine the Loan Amount Offered
It is crucial to understand the maximum loan amount you are eligible for. Lenders determine your maximum bike loan amount based on factors that affect your repayment capacity like the bike value, income, job stability, existing debt obligations, etc. Some lenders even offer a 100% loan amount based on your eligibility. Confirming how much down payment you need to make will help you make an informed decision and plan your budget accordingly.
Tip: The bike loan eligibility can be easily calculated by registering through the lender website or by talking to the customer care representative of the shortlisted lender.
Look for a Simplified Loan Process
Opting for a lender who has a 100% digital presence will help you apply for the loan from the comfort of your home. The two-wheeler loans availed online are paperless. The borrower will have to fill in the basic information and upload scanned documents to avail of the loan. Additionally, since the uploaded documents are verified instantly through digital processing, the loans are approved, and the funds are disbursed quickly to your bank account.
Look for Flexible EMI Options
Flexible repayment tenure can help you repay the loan in affordable EMIs. Choosing a lender that offers customer-friendly repayment options can later save you from financial worries. Calculate your monthly EMIs and tenure using a bike loan EMI calculator before signing on the dotted line. This easy-to-use tool will help you calculate an EMI that fits your monthly budget comfortably.
Compare Two-wheeler Loan Interest Rates
Getting the lowest bike loan interest rates will help you save more on loan EMIs and repay the loan sooner than the tenure. Lenders determine the bike loan interest rates based on your credit score, job stability, income, age, the organization’s reputation, etc. Choosing a lender who offers the lowest interest rates, lower penalties, processing charges, etc., will help you obtain the best deal in the market.
Apart from the above, do watch out for special offers, and pre-approved loans lenders offer. Additionally, it is always prudent to take a bike loan from an established lender. A lender with a good reputation in the market will have a good track record of customer service and lower rates. Checking these will help you choose the right lender to finance your dream bike. Make the right decision. Apply for the loan today!