If you are planning to buy your favourite bike but do not have adequate funds for paying the entire amount at one go, consider getting a 2 wheeler finance. You will have several options depending on the repayment period, interest rates, etc. Knowing the EMI (Equated Monthly Instalments) amount in advance would be helpful with the help of a EMI calculator. It is an online tool which would help you to plan the monthly payoffs. Adjust the duration of payments to choose an amount that would be comfortable for you. Know about the factors that you should consider while getting a two-wheeler loan.
There are certain things that you should take care of while applying for a two wheeler loan.
Type of loan
Currently, there are two ways in which you can avail the loan as per your financial status:
Down payment and loan
You can make a certain amount of down payment while buying the two-wheeler and for the rest of the amount, you can take a loan.
Zero down payment
You can take the entire amount of loan without making any down payment. It will be a 100% EMI based financing for your two-wheeler.
Choose any of the loan arrangements that would suit you.
Your credit score
Lenders would look at your credit score before approving the loan and the minimum score would vary between lenders. However, a CIBIL score over 750 would help you get loans from most lenders. If you are taking a loan amount equal to the entire price of the two-wheeler, then the lender may stick to high credit scores as his risk would be higher.
Eligibility criteria and documentation
The eligibility requirements vary between different lenders and the document requirements would differ. Before applying for a loan, check if you fulfil all the eligibility and document requirements.
Bike finance interest rates
Whether you would avail the loan from a particular lender, depends on the interest rate offered by the lender. This rate varies between lenders. Compare between several lenders to find the interest rate on your two-wheeler that would suit you the most. Also, check the other applicable charges so you can manage your expenses.
Flexibility of tenure/ loan term
The tenure of loan repayment will determine the EMI amount that you have to pay every month. Check whether the loan term is flexible enough to accommodate your EMIs and it does not become an additional burden. Based on these conditions, you should choose the lender.
Conduct research regarding available lenders
Check the features and benefits provided by each lender by visiting their websites. This would be an easy and fast way to compare between lenders. It is important to research as you would be able to shortlist lenders with some of the suitable loan offers for you.
Look for seasonal offers and discounts
Buy your two-wheeler at a time when you will find several discounts and offers being offered by lenders. This would help you to get more savings. During certain festivals or times of the year. You will find that the lenders offer more discounts than other times of the year. The offers may include reduction in interest rate applicable as against the standard rates.
Negotiation
If you have the required eligibility, you can negotiate with lenders for favourable terms of the bike loan, reduction in interest rates or increase in loan tenure. You may manage to strike a good deal in the process.
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Features of the loan
Some of the features that you must consider when selecting a lender are the maximum amount of 2 wheeler finance available, repayment options, the time taken for loan application processing, approval, disbursal, etc. LTV or Loan to Value is a factor that determines the maximum financing that you can get and down payment that you have to pay.
Document requirements mentioned by the lender
Once you have selected the lender, check the eligibility and document requirements that you need to fulfil while applying. Usually, the eligibility criteria would be based on your age, monthly income, credit score, repayment capacity, etc. The lenders require the documents as proof of such eligibility. You may choose a lender who does not have very stringent requirement regarding documents, etc. These would lead to delay in loan processing.
Affordability check with EMI calculator
With the online EMI calculator, you can find out the EMI and estimate whether you would be able to pay the amount every month. If it seems difficult, you can adjust the values to arrive at an amount which you can easily pay beside maintaining your other expenses. It would also help you to decide on the amount of loan you should borrow.
Before applying for a loan to manage your 2 wheeler finance requirements, go through some important factors like the loan term, interest rates, features, etc. of the loan. You may have to do some online research to get a loan with good benefits, so that you can repay back with ease.
