Riding your own bike is a thrilling sensation that cannot match any other pleasure in the world. Every individual, especially the modern youth, dreams of owning a motorcycle. A few reasons that make bikes the most popular commuting mediums among Indians include their high fuel economy, easy manoeuvrability, ability to cut through traffic jams, stylish looks, and long life expectancy. However, their price tag may be a hurdle in the way of owning a bike. That is why most aspiring bike owners apply for a Two-wheeler Loan online to make their dreams come true.
A Bike Loan is the easiest way to secure bike finance. Apart from being easy to apply, they are also available at competitive interest rates and flexible repayment tenures. However, when choosing a loan plan, you must consider several factors, such as eligibility criteria, documentation requirements, loan tenure, down payment, repayment capacity, etc. Here’s a quick guide to choosing the best Bike Loan plan suitable to your needs.
Preparing for the Right Bike Loan
Buying a bike is a significant decision that requires careful planning and preparation. Follow these steps to increase your chances of getting the best loan plan:
Researching and comparing the available loan plans is essential before applying for a bike loan. Start comparing interest rates, eligibility conditions, documentation requirements, customer service, etc., from various loan providers. Analyse their repayment terms to get an idea of what you expect from your loan plan and how much you can afford to pay each month.
Determining an Adequate Loan Amount:
Evaluate your savings and determine how much you need to apply for a Two-wheeler Loan online. The bike price you see is usually the ex-showroom price. When you enter the showroom to buy one, the insurance, registration and other charges add up to make up its on-road price. While many lenders finance up to 95% of the bike’s cost, you must borrow only what you need. Over-borrowing will unnecessarily increase your financial burden and make repayment challenging to manage.
Checking Out the Eligibility Criteria:
Different lending institutions have unique eligibility criteria for Bike Loans. Ensure checking out the lender’s eligibility conditions to meet them before applying. Applying for a loan without fulfilling the lender’s eligibility criteria will lead to rejection and hurt your credit score, making it difficult for you to obtain loans from other loan providers.
Choosing an Affordable Loan Plan:
Once you select the most suitable loan plan according to its eligibility criteria, give attention to its affordability per your monthly budget. Consider the Two-wheeler Loan interest rate, repayment period, and EMIs when deciding. A Bike Loan EMI calculator is an unparalleled tool to determine your affordability. You can calculate EMIs for various loan terms and opt for a repayment tenure that best suits your monthly repayment capacity. Increase the tenure if you want to reduce the EMI amount, and reduce it if you can afford to pay more monthly.
Checking the Interest Rates:
The Two-wheeler Loan interest rate is a crucial determining factor affecting your loan eligibility and affordability. Lending institutions determine your interest rate based on factors like your income, debt-to-income (DTI) ratio, job stability, work experience, credit score, etc. The more repayment capacity you can prove, the lower the interest rate you can grab. So, get quotes from lenders to check their interest rates and choose your loan plan appropriately.
Choosing the Tenure Wisely:
The Two-wheeler Loan tenure is the period over which you must repay the loan. A longer tenure means smaller monthly EMIs, but it will increase your interest outgo in total. The opposite happens when you choose a shorter loan tenure. Therefore, use an EMI calculator to find a loan term with easily affordable EMIs and opt for one that best suits your budget and repayment capacity.
Keeping the Documentation Ready:
Before applying for a Bike Loan, keep all the required documents ready, including your identity, age, residence, and income proofs. You must provide job continuity proof if you are a salaried employee and business existence proof if you are a self-employed professional. Check the lender’s documentation requirements and ensure you have everything you need.
Inquiring about Hidden Charges, Terms and Conditions:
Some loan companies have hidden charges, terms and conditions you must be aware of. Before signing the loan agreement, enquire about these and ensure you understand them, including any applicable fees and charges.
Assessing Your Repayment Capacity:
Before taking out a Bike Loan, assess your repayment capacity to keep EMIs manageable. It helps you understand how much money you can easily repay each month, thus avoiding financial trouble during the loan term.
Getting an Idea of the Customer Service:
You might need an expert’s help several times during the application procedure and loan tenure. Therefore, the lender’s customer service department should be easily accessible through multiple platforms, including phone, email, and physical branch.
Find out what the lender’s existing customers say about their products and services. Read online reviews, talk to acquaintances, and check testimonials to find the most customer-oriented lending company.
Things to Avoid
Here are a few things to avoid to get the best Bike Loan deal:
- Avoid applying for a loan with multiple loan providers, as it might negatively impact your credit rating and make loan procurement more challenging in the future.
- Never submit false information or hide any details when applying for a Bike Loan to avoid rejection.
- Don’t go for the first loan offer you come across. Take time to carefully compare the available loan plans before opting for one.
Choosing the right Bike Loan plan requires careful planning and consideration. With various options available in the market, it becomes more important to compare multiple loan schemes before making a final selection. Consider your financial needs and repayment capacity to select a loan plan that best fits your requirements. A well-informed decision will go a long way in ensuring the approval of your Two-wheeler Loan application online without hassle.