For most Indians, two-wheelers are not just about getting vehicles but are often associated with loads of sentiments. It is a lifeline for many as it defines how they have joined every single penny to have their valuable possession. This tendency has fueled the growth of the two-wheeler industry in India. Most vehicle buyers prefer to take a two-wheeler loan to ease out the buying process.
As money plays a crucial role in determining your purchase, it becomes critical to have the right two-wheeler finance. Going for the right two-wheeler loan is all about searching for low-interest rates, flexible repayment options, easy loan processing, and so on.
Whenever you consider getting a bike loan, there might be several questions pondering upon your mind.
Am I eligible? How do I apply? What documents will I need? How much will be the loan amount?
Well, fret not.
Below we’ll talk you through some essential factors you can keep in mind while applying for the right two-wheeler loan.
Five ways to get the right Two-Wheeler loan
1. Get the Best Interest Rates
It is always important to go for the best interest rates, which can help you buy the best option. Though interest rates differ from lender to lender, it is critical to go for only those who provide low interest on the loan amount.
Credit score plays a crucial role in deciding what interest rate you will be charged on your two-wheeler finance. While a high credit score attracts low-interest rates, a poor credit score can reduce your chances of getting a loan at competitive rates.
Hence, you must work on improving your credit score, which will define your entire loan-taking process. Prior to applying for a loan, check your credit report. In case of any defaults, take necessary measures, such as paying previous dues on time, etc., to get the loan at desired interest rates.
2. Look for Additional Offers
Indians love to celebrate their festivals with lots of enthusiasm. For two-wheeler loan applicants, the best thing about festive seasons is that the loans come up with different discounted offers. Various NBFCs roll out many exciting features such as better interest rates, less processing fee, no penalty on repayment, etc., during this time. Hence, this may be an excellent time for you to avail of the two-wheeler loan to avail yourself of the bike of your dreams.
3. A Big No to Over-Borrowing
It is essential to analyze your financial status before applying for a loan.
It is advisable not to go for over-borrowing and keep in mind the long-term repercussions. You can use a two-wheeler loan calculator to determine how much loan amount you are eligible for, depending on your interest rate, loan tenure, and other factors.
4. Easy Loan Processing
Applying for a loan is a tedious process. Especially with different formalities involved, you always want to have an easy loan processing regime to reduce any hassle in the future. Therefore, while opting for a loan, it is crucial to check the loan availing process of multiple lenders to get the right deal. Easy documentation, fast and easy loan approvals are something you should go for.
Along with interest, you are also required to pay the processing fee, which may differ from lender to lender. The processing fees may go up to 3% of the total loan amount, and therefore searching for zero or low processing fee options is the benefit you should always vouch for.
5. Check the repayment options
Finally, you must check the repayment options provided by different loan providers and go for the one that suits your repayment plan. Although the repayment options vary, most lenders offer flexible repayment options for a loan tenure of up to 48 months.
Further, if we talk about your repayment plan, it is not feasible to drag too many years for repaying the loan you have opted for. This not only impacts your financial health but will also disturb your repayment plans.
Therefore, it is crucial to go for a repayment plan, such as flexible EMIs, grace period, and many more. It is advisable to go for a higher down payment so that repayment tenure is less.
The above pointers could help you make the right decision and choose the two-wheeler loan that fulfils your cash requirements and prevents any problems in the future. So, what are you waiting for? Apply for the loan now and own a brand new two-wheeler on your terms and conditions.