For most Indians, a bike is not just a two-wheeler. It is their favourite asset. At some point in their lives, nearly every Indian dream of owning a motorcycle. Such a movement has fuelled the growth in India’s two-wheeler industry. Moreover, there’s a swing in the personal vehicle demand due to this COVID-19 pandemic, more & more individuals are looking at buying their own vehicles to maintain proper social distancing and commute with a peace of mind.
Most bike buyers choose a two wheeler loans for the purpose mentioned above. The low-interest rates, flexible repayment options, simple documentation, and quick approval have made two-wheeler loans one of India’s sought-after industries.
When you first consider getting a bike loan, a lot of questions might come to mind:
a)Do I qualify?
- b) How can I apply?
- c) What kind of documentation would I need?
- d) What amount will I ask for?
- e) What will the interest rate be?
- f) How much have I to pay for EMI?
And so on.
Here is a quick guide to consider while applying for a two-wheeler loan:
Get the best interest rates:
The eligibility depends on your place, income, the form of residence, age, work status, and credit score. If you have a higher credit score deemed satisfactory by the lender, you will get to make more bargaining. Choose a payment which isn’t too heavy on your wallet to prevent excessive pressures or financial burdens.
Look for seasonal & special offers:
Getting a 2 wheeler loan during holiday seasons is a good idea. You can get more deals like a free gold coin, zero transaction fees, free insurance, etc. Your existing financial institution can provide pre-approved offers as well; you will be eligible for bike loans with less documentation and better EMIs. You can leverage these offers to your benefit.
It is always better to review your financial situation and decide on what you can afford. One way to do that is to test your income regularly. Ask yourself how much of your income can you use to cover the loan. Thinking long term is best but consider how long you will afford to pay off the loan. Keeping some money aside for emergencies is also a smart idea. You can also use a two-wheeler loan calculator to test how much wage you can earn for loaning.
Having a repayment plan:
Dragging a loan for several years is never a good idea as you could end up losing more cash in the process. Evaluate if the loan lets debt clear as soon as possible. Go for a loan option that involves Flexi EMIs and grace period so you’ll never skip an EMI. It is also better to contribute a large amount of down payment so that the duration and length of your repayment are less. You can use a two wheeler loan EMI calculator available online to know better about your repayment phase.
Additionally, know about the entire terms and conditions and check what the existing customers have to say about the customer service of the lending institution. Such an effort will help you find the best lender for your two-wheeler loan requirements.