Do you want to purchase your dream bike? Have you decided on the model and brand? If yes, then the next eventual step is to arrange for the money to complete the purchase.
Spending your savings to buy a bike is not a good idea. So what are your options? You may benefit from a loan for a bike. But there are few things to think about when applying for two-wheeler financing.
This article explores the best factors to consider before applying for a bike loan.
What Should You Think About Before Procuring a Two-Wheeler Loan?
1. Eligibility Criteria
Different lenders have different qualifying requirements. Before applying for credit, you should review the eligibility requirements on their website. Always check to see if you meet every need. That will quicken the financing process for you.
2. Check Your Credit Score
Based on your credit history, bureaus like CIBIL calculate your credit score. The way you handle debt repayment will affect your score. Your credit score will increase if you make on-time payments on your previous loans. Additionally, a high score will enable you to obtain a lower interest rate and empower you with more negotiating power with your provider.
3. Keep All Your Documents Ready
To confirm the information you submitted, your lender will request your supporting documents. Your proof of identification and proof of address must be submitted. Additionally, you will need to give them all of your income-related documentation, such as your pay slips, tax documents, and bank records. It will save a lot of time if you have all your documents available ahead of time. As a result, processing your credit will take a little while.
4. Compare Two Wheeler Loan Interest Rates
Several financial institutions offer financial support at incredibly low-interest rates for two-wheeler loans. Do not choose the first loan provider you encounter. Make sure to compare everything carefully using a two wheeler loan interest rate calculator to discover the best interest rate.
5. Loan Amount
Many financial institutions provide loans for two-wheelers in the 90% to 95% range. The loan-to-value (LTV) ratio is influenced by things like the type of two-wheeler and the borrower’s profile. Borrow from financiers who give sufficient loan amounts to meet your needs.
6. Consider the Additional Charges
Actually, you have to pay more than just interest. Processing costs are another charge your lender will charge you. The lender will determine the specifics. Processing costs, however, can reach 3% of the overall loan amount. Choose a loan provider with the lowest processing costs. As a result, you’ll have less debt to carry.
7. Look For Seasonal Offers
Keep an eye out for seasonal deals and discounts on your lender’s website and social media profiles. During holidays, financial institutions frequently waive their interest rates. These opportunities will present themselves if you keep an eye out for them.
8. Use A Bike EMI Calculator
You can determine your EMI amount with a bike EMI calculator. Managing funds becomes easier if you know your EMI amount ahead of time. So future expenses can be planned appropriately. You can determine the EMI for various loan sums and terms. As a result, you can choose the ideal bike loan for you. Every loan institution’s website has an EMI calculator available.
The Bottom Line
Take into account these variables before applying for a loan for a bike. You’ll be one step closer to owning your ideal motorcycle if you obtain a two-wheeler loan. You shouldn’t rush and choose hastily. You can quickly and simply determine your monthly EMI with a two wheeler loan interest rate calculator. Calculate your down payment, interest rate, and loan sum right away.
