4 Important Things to Know before Taking Loan from Two-wheeler Company

Maybe you are waiting to ride your dream bike for a long time and waiting for the right opportunity to apply for the loan. There are many things to consider; the budget for the bike, the model which will fit your requirements and the right 2 wheeler loan company which can help you to get the loan for your dream two-wheeler. Among the many things, finance is your primary concern because without a loan it is not possible to get the bike. However, before you approach the lending institution, there are four vital questions which you should ask.

Thinking about your budget; how much you can afford

Before you opt for a loan, try to find out how much you can afford to spend each month. You can simply multiply this figure by the number of months you want to pay for your two-wheeler. Determine your budget and whether you are comfortable in spending that amount of money before you visit the 2 wheeler loan company for the money. It is essential that you calculate your finances first, before you think about getting the loan.

Can you afford a long-term loan?

You may have heard it as a fact that cars depreciate if they run for a long time; the same happens for bikes as well. A longer loan term means that it will lower the monthly bills; but it also means carrying the loan burden for a long time. And while you repay the loan of one purchase, it is difficult to get another loan even if you want to. If your condition permits, you might put some cash before the time of the purchase or simply opt for a two-wheeler which will give you the liberty to make payments within a shorter period. Purchasing a bike within your budget or slightly above your budget gives you the freedom to repay the loan comfortably within a short time.

Shopping around for getting the best deals

Before finalizing a 2 wheeler loan company, you should explore your financing options. Many two-wheeler dealers will offer direct finance, but most likely you will not find the best terms. You can opt for a personal loan or a manufacturer credit card as well. However, before you opt for the loan and the terms, you should also ask about the type and amount of insurance coverage that will come with the loan. It can be more or less than the amount you have thought about.

Some useful tips to remember

The motorcycle can be chosen as a secured asset; and if you have decided to get the loan for the bike against a property, you will get the loan at a much lesser rate which also means lesser EMI in the coming months. In this process, your loan gets approved without a glance at your credit history. For an unsecured loan, of course, the interest rates will be much higher. But as there is no security involved, this works pretty well for those who are not ready to pledge with their assets.

Before you apply for a 2 wheeler loan, you should check your credit history properly; look for unjustified errors which can reflect poorly on your credit score!

Hero FinCorp is a diversified financial services provider in India. We are an associate company of Hero MotoCorp Ltd.