To most Indians, a bike is not just a machine made up of a motor and two wheels! For many, it’s their lifeline. Almost every Indian dreams of a bike at some point in their life. This has fueled the growth of two-wheeler industry in India.
Most bike buyers prefer taking a two wheeler loan; the low-interest rates, flexible repayment options, easy documentation, and quick approval have made two wheeler loans one of the fastest-growing industries in India.
When you consider getting a bike loan for the first time, a lot of questions may come to mind: will I be eligible? How do I apply? What documents will I need? For how much amount can I apply? What will be the interest rate? How much EMI will I have to pay? And so on…
Here are some of the most important things you must consider before you apply for a two wheeler loan:
Your eligibility depends upon your city, salary, residence type, age, employment status, and credit score. If you have a good credit score, you can bargain more. Choose a payment that is not too heavy on your pocket so that there is no undue stress or financial burden.
It is a wise idea to buy it during the festive seasons. Look for additional offers like a free gold coin, zero processing fees, free insurance, etc.
Check your financial status and see how much you can afford. The best way to do that is to check your monthly income. Ask yourself how much of your income can you use to pay off the loan. It is advisable to think long-term, so think till how long you can keep paying off the loan. It is always a good idea to keep some money aside for emergencies. You can also use a bike loan calculator to check how much salary you can allocate to loan. Try our EMI calculator
It’s never a good idea to drag a loan for many years or you could end up losing more money. Check if the loan allows clearing off the debt as soon as possible. Go for a plan that includes flexible EMIs and grace periods so that you never miss an EMI. Also, it is advisable to make a high amount of down payment so that your repayment amount and tenure is less.
Some documents have phrases you might not understand. Make sure you get help in understanding the confusing clauses before you sign it. Also, check what the existing customers have to say about the customer service. This will help you choose the right lender for your two wheeler loan.