Tips For Selecting The Right Loan For Two-Wheeler

The affordability and ease of mobility make two-wheelers an excellent choice among youth. It helps you with everyday transport for personal or commercial purposes. It is a faster way to navigate the busy lanes, thereby reducing travel time significantly. It further helps save a lot of money on the everyday commute, especially for students going to college and grown-ups going to their offices. But, it is not easy for everyone to buy the bike of their choice – the main reason being limited funds. By availing bike finance, you can afford to pay for your dream bike.

Top 7 tips that will help you choose the right two-wheeler loan

two-wheeler loan make it possible for most middle-class families to afford the purchase of a vehicle. However, a lack of knowledge regarding the loan’s basic terms and conditions can result in taking on a loan that is suitable for you.

To make sure you avail the right bike finance option, follow the tips listed below.

1. Comparing interest rates:

A slight change in the interest rate of a bike loan can significantly impact the overall amount you have to repay. So, compare the two-wheeler interest rate of different lenders before applying for a loan. Also, remember that there are other fees and expenses associated with a loan. Make sure you understand these before signing on the loan amount.

2. Checking your loan eligibility:

The amount a lender approves against a loan does depend on financial health, debt to income ratio, and many more factors. To make sure you are eligible for a loan amount, you can use a two-wheeler loan calculator online. This way, you avoid applying for a loan that would get rejected. If you are not eligible, you can try out a longer tenure to decrease your monthly liabilities.

3. Understanding your EMI:

Most of the loans are repaid via monthly installments, also known as the EMI. It means you need to ensure that you have the income to pay the installment on the due date. If you delay the payment, it could lead to a penalty and this is something you must avoid. So, it is important to know the EMI you will pay for the loan tenure.

4. Selecting a tenure:

Do make sure to select the right tenure, as failing to make a repayment can severely impact your credit score. Usually, a bike loan tenure ranges from 1 to 3 years. Note that the entire loan amount along with the interest payable is to be made within the selected tenure. The longer the tenure, the smaller will be the EMI. So, choose carefully.

5. Time required for disbursal:

Some lenders offer capital for a loan instantly, while others take a lot of time processing the loan amount. So, before applying for a loan, consider your urgency for the capital requirement. It will help you avoid unnecessary delays, especially when you urgently need to make a purchase. Also, look for a lending institution that has seamless processes.

6. Deals and offers:

Many lenders offer seasonal deals and offer to attract new customers. Make sure to look out for loan offers available. It can help you save money or interest amount. You might get a loan offer from your vehicle dealer too.

7. Application procedure:

Some lenders use traditional processing applications and require you to submit a lot of documents. You can choose a lender who provides easy accessibility to a loan and processes it in a few simple steps. Also, you can apply from the comfort of your home using your lender’s website.

Conclusion:

Availing for a two-wheeler loan is simple as long as you meet the eligibility criteria. However, it is advisable to choose the right lender to minimize your liability from the loan. Further, make sure that the two wheeler loan interest rates are low and repayments in EMI are manageable along with your monthly expenses.