Two-wheelers are the most convenient, cost-effective and interesting mode of transportation, especially for Indian youth. Whether you need a motorcycle for everyday commute to work or keep it for long drives and adventure trips, a new two-wheeler can last up to 1 lakh kilometres. Furthermore, a bike allows you to easily navigate crowded roads, visit picnic spots with family or friends or go on a tough journey without any worries. Have you set your heart on any bike model? Now you don’t need to stop your dreams due to lack of money. Now, you can avail a loan for 2-wheeler, which offers instant bike finance at competitive interest rates.
Many loan companies offer attractive offers, so getting the right financing for your trip is essential. Here’s a guide to help you do so.
Preparing for the right loan for 2 wheeler
Buying a motorcycle is an important decision, and financing it with a loan requires careful consideration and preparation. The following steps will help you prepare for the loan application and increase your chances of approval:
Before applying, research and compare loan offers offered by different lending institutions. Analyze the interest rate, repayment period and other terms and conditions of their two-wheeler loan. This will let you know what to expect and how much you will have to pay monthly.
Determine your loan requirement:
When choosing a loan plan, decide how much you need to borrow. The amount you require depends on the cost of the vehicle, the upfront payment you make and additional expenses such as insurance and registration. Also, analyze the LTV ratio provided by the loan provider. Some reputable lenders may finance up to 95% of the bike’s price, meaning you pay only 5% upfront from your own pocket. However, the more you borrow, the larger your liability will be. Therefore, determine your loan requirement that best suits your finances.
Understand the lender’s eligibility criteria:
Check the lender’s bike loan eligibility criteria and make sure you can meet them. Ideally, you should be at least 18 years of age, salaried or self-employed, to meet the minimum wage requirement.
Check Loan Cost:
After understanding your loan requirements and eligibility, choose the most affordable loan plan with reasonable interest rates, LTV ratio, repayment terms and EMIs. Since two-wheeler loan interest rates vary significantly between loan providers, check to ensure the best loan deal.
Select Repayment Period Wisely:
Repayment period is when you have to repay the borrowed amount. Longer tenure reduces the EMI amount but increases the cost of the loan. So, use the bike loan EMI calculator to choose the tenure that best suits your budget and repayment capacity.
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Prepare required documents:
Check the lender’s documentation requirements and make sure you have them prepared. These include your identity, residence, age and income proof. The lender may also ask for proof of job continuity from salaried and proof of business existence from self-employed professionals.
Inquiries about hidden terms and conditions:
Some loan companies have hidden terms and conditions that become apparent only when you face them. Before signing the loan agreement, inquire about these terms to fully understand them.
Avoid applying for multiple loans:
Applying for loans from multiple lenders has a negative impact on your credit history, making it difficult for you to get a loan for a two-wheeler. Compare loan plans and connect with the lender that best suits your loan needs and repayment capacity.
Double check information before submitting:
Providing incorrect information on your loan application may result in negative reactions. Therefore, always provide correct information and double-check it before applying to avoid the risk of rejection.
Evaluate your repayment capacity:
Before taking a bike loan, evaluate your finances and determine your repayment capacity. Understand what amount you can pay for the loan EMI every month without increasing your financial crisis. Accordingly, make a repayment plan using the EMI calculator.
creating a repayment plan
It is necessary to calculate the loan EMI to make a loan for two-wheeler repayment plan. For this, you should consider your loan amount, interest rate and repayment tenure. Bike loan EMI calculator helps to calculate monthly installments easily. It is also important to remember that the tenure you choose largely affects your loan cost, EMI amount and repayment structure. For example, a longer term reduces your monthly payments but increases your interest costs.
Additionally, avoid missing or delaying payments. Calculate EMI accurately using online EMI calculator and choose the loan tenure keeping in mind your repayment capacity.
Benefits of choosing the right loan for 2 wheeler
There are many benefits of choosing the right loan plan for buying a two-wheeler, which include the following:
- Buying your dream bike becomes affordable.
- You can get easy financing as per your needs and eligibility.
- The right bike loan provides financial assistance by offering flexible loan terms suitable for your budget.
- Getting a bike loan has become convenient, with instant approval possible upon online application and document submission.
- The best loan plans come at affordable two-wheeler loan interest rates. However, it depends on the specifications of your bike, income, credit history, repayment capacity, DTI ratio etc.
- Minimal processing and documentation charges make the loan scheme affordable.
Before applying for two-wheeler finance, check out the loan schemes from multiple loan providers and negotiate as much as possible to get the best deal. You are more likely to get a favorable loan plan if your eligibility and credit history is good.
Loan for two-wheeler offers many benefits apart from giving you the freedom to travel. Plus, easy EMI options make repayment easier than ever. However, a little planning goes a long way in choosing an ideal loan plan. Contact a reputable lender for a customized loan plan. Some of the benefits you can expect include attractive interest rates, quick loan processing, flexible loan tenure, easy application and hassle-free documentation.
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