Two-wheelers are a convenient option to commute in urban as well as rural areas. With ever-increasing road traffic and decreasing parking space, a two-wheeler helps navigate roads faster and takes up less space than four-wheelers. Moreover, the maintenance cost of a two-wheeler is cheaper and more economical from the point of view of the rising price of fuel.
If you have been planning to buy a two-wheeler and take a bike loan, here are the five major things to remember before two-wheeler finance planning. These 5 things will help you choose your bike loan carefully before actually availing it.
1. Eligibility Criteria for Two-wheeler Loan
Check whether you are eligible to get a two-wheeler loan. The requirements might differ across lending institutions but having a good credit score helps. Three things are essential here- your credit score, documents like proof of residence, bank statement, etc., and salary details.
Tip– If you have an established credit history, then there are high chances your two-wheeler loan will get approved online in a hassle-free manner. Established credit history develops when you have paid off or continue paying all previous loans promptly and have not missed EMIs. Check this out to see the documents required for the same.
2. Fixing the budget and calculating EMIs
It is a common habit to open an EMI calculator online, put in the desired loan amount, and check the amount and duration of EMI. There is nothing wrong with it. For this, it is first vital to fix a budget. It will decide how much money you wish to give as a down payment and how much loan you can apply for. It will help you decide how much loan you require.
Tip– In most cases, two-wheeler loan tenure is about 1-3 years, so fixing the budget is essential to be financially prepared for the process. Two-wheeler finance is convenient with several options.
3. Research the Interest Rates
Suppose you want a bike by November 2022, then it is advised to start planning for at least the last 4-6 months. Any planned financial decision is always better than a non-planned one. The 4–6-month time will help to plan and balance your personal finance and the upcoming EMIs. Most importantly, use this time to research and compare the interest rates offered by various lending institutions. The annual interest rates can range from 11% to 23%. Try to lock in an interest rate that suits your budget.
Tip- 2-wheeler loan interest rates vary from one lending institution to another and depend on the profile, track record, and loan amount opted by the customer.
4. Additional charges and seasonal offers (if any)
Keep your eyes open for any additional charges the lender might charge. It mainly includes the processing fee, and it varies from lender to lender. Be informed that the processing fee cannot exceed more than 3% of the total loan amount. While researching, also check who is offering the lowest processing fee. This way, your overall financial burden will become less.
Tip- Many a time, there are seasonal offers that include discounts, rebates, etc. Keep an eye on their social media pages to grab the right offer at the right time.
5. Choosing The Right Lending Institution To Get The Loan From
Today, numerous agencies are lining up to give you instant loans without little to no hassles. But remember, the more the checks, the better the security. So choose a well-established name in the market that follows all procedures diligently and is ready to help you in the whole journey. Apart from the money factor, it is also essential to develop a healthy customer relationship. Fullerton India stresses on the ‘respect’ factor as their tagline suggests ‘Rishta Samman Ka.’ (Meaning a relationship of respect)
Check out their website to get the best 2-wheeler loan interest rate and simple personal loan application, and get your dream bike home as soon as possible.
Conclusion: These are all 5 essential things that one should keep in mind before taking a bike loan for yourself or your loved ones. These things will provide you with everything that you should know about before availing of a bike loan and help you get to prepare for the same.