You have decided to buy the motorcycle of your dreams with an engine capacity of 200cc. You want to apply for a two-wheeled vehicle loan but don’t know where to start. Surprisingly, the best option is a two-wheeled vehicle loan. To have enough funds to buy your favorite motorcycle, you can easily buy the motorcycle of your choice without worrying about paying the full price right away.
Countless banks and financial institutions offer bike finance; however, finding a suitable bike loan is quite difficult. Here are 5 things you should consider before taking out a two-wheeler loan.
Check The Following Before Availing Bike Finance
Check your credit rating
If you have other loans, you should check your credit rating before applying for a two-wheeler loan. If you are unsure of your credit rating, check your rating online that shows your creditworthiness.
A decent score of 750 or more, makes it easy to buy a two-wheeled vehicle with bike financing. The advantage of a good to excellent credit rating is that you can purchase a two-wheeler loan at a lower interest rate. How would you check your credit rating? Multiple online websites can provide you with a credit report online.
Your eligibility
When determining the eligibility of a loan applicant, it depends on the bank, as the bank has its criteria. However, you can find most lending platforms following some standards such as minimum or maximum age, whether the candidate is residing at the address for at least one year, etc. If you would like to know your eligibility for a two-wheel loan, you can check it in a few minutes using the online EMI Calculator for a bike loan.
Know the maximum amount of credit you can get
Most banks have their standards for lending. It mainly depends on the value of the motorcycle you choose and your ability to qualify for a two-wheel loan.
Loan Process
Unlike the previous ones, two-wheel loans are easy to apply and process online. If you qualify, you can get instant approval for a two-wheeler loan by completing and submitting your application on the bank website or mobile app. Once the paperwork is completed and approved, then the bank would deposit the funds in your account.
Loan term
The monthly payment or EMI of your bike finance is highly dependent on the term of the loan. Of course, the loan amount and interest rate also affect the EMI of the bike. When EMI is low, but you pay high interest. Conversely, the higher the EMI, the lower the interest you pay. So choose your bike EMI period wisely.
When looking for a bike, don’t be discouraged when you see an exorbitant price tag and give up on the bike of your dreams. Two-wheeler loans are designed to serve clients of all ages by only allowing them to make upfront payments and the rest we can pay in Equal Monthly Instalments (EMI). So what’s in store? Make your dreams come true by following the six steps above.
