Important Things To Consider Before Getting A Two-Wheeler Loan
Two-wheelers are the best alternate option to public transport due to the social distancing norms of COVID. There is no better option than a bike to navigate through daily traffic. If you love riding a bike to feed your soul by hitting the adventurous terrains, you must be enticed by the market's newly launched robust engine bike. But the thing is, it comes with a hefty price tag. Digging into your savings to purchase that bike is not a good idea. It would be wise, to begin with a two-wheeler loan to make ease with your finances.
Remember these important tips before getting a two-wheeler loan to avail best two-wheeler loan without making mistakes.
When it comes to determining the eligibility of a loan applicant, it varies according to the lender. Although eligibility criteria differ according to the lenders, there are a few common standards across all platforms:
● You must be an Indian citizen employed in a private or government sector or a self-employed person.
● You must have a stable job with a minimum yearly income (based on the lender's policy).
● You must have residential proof that you have been residing for at least one year.
● You must be at least 18 years old at the time of application and 65 years during maturity.
Use a two-wheeler EMI calculator (KW1)
Your EMI payment should not be a burden on your monthly budget. You should only borrow as much as you can afford to repay in EMIs. So, you can use a bike loan EMI Calculator to know the monthly amount you will pay as EMIs. It will help you to regulate your expenses accordingly. With the help of the EMI calculator, you will be able to decide on the most suitable two-wheeler loan for yourself.
Compare the interest rate
The interest rates may vary depending on the lender. Do some research, gather information about different lenders, and compare their interest rates before finalising a suitable loan. The interest rates range from 9.5% to 17%. Do not settle for the first lender you find. It will help you to get the lowest interest rate.
Keep an eye on additional charges
Before finalising the lender, ensure the additional hidden amount they are charging. Calculate all the extra charges as processing fees, documentation charges, stamp duty, loan foreclosing charges etc. It will help you to understand the overall costs you need to pay.
Look for offers
Lending institutes often get rebates on interest rates during festivals. Keep an eye on your lenders' websites and social media pages for these kinds of offers and discounts to grab exciting offers that will help reduce interest rates.
Assess your credit score
Credit scores are formulated according to your credit history by bureaus like CIBIL. It will depend on how you repay your loan. So, before applying for a two-wheeler loan, it is essential to check your credit score. A credit score reflects your creditworthiness, considered one of the most crucial parameters by lenders before approving your loan.
A well-maintained credit score will not only help you for faster approval, but it will also help you to lower your interest rates. Create an account on CIBIL's official website to access your credit details. Or you can take help from your lenders to access your credit score data.
Know the loan process
Two-wheeler loans can now be applied and processed online. You can get a hassle-free process if your bike loan has been approved. All you need to do is navigate through your lender's two-wheeler loan application page and fill in all your personal and financial details.
Further, you must provide information about your vehicle like the dealer's name, on-road price, RTO location, two-wheeler insurance policy etc. Along with the loan application, you must submit proof of your identification, residential proof, Income proof, and one passport-sized photograph.
Decide on the loan tenure
Decide your loan tenure wisely, as it directly influences your EMI interest rate. If you choose a low EMI with a long tenure, you must pay a high-interest rate. On the other hand, if you choose to pay the high EMI, you will have a low-interest rate. Keep it in mind before deciding on the tenure and choose accordingly.
In the end, consider these crucial things before deciding on a two-wheeler loan. Do not take any impulsive decisions. Think, compare and be mindful before choosing the loan for your dream bike for a happy ride.