The availability of suitable bike financing in the market has made it possible for many two wheeler aspirants to own the bike models of their choice. A loan for two wheeler is designed to enable quick funding for easy vehicle purchase. Several other features and facilities accompanying bike loans prove to be useful and make loan management convenient. For instance, a long tenure of up to 5 years allows borrowers to repay the advance affordably in easy EMIs. However, that’s not all that remains in the picture. One must be well-prepared for various terms related to the advance and avail financing accordingly.
It is ideal to check a few crucial aspects and take the necessary steps that should smoothen out the entire loan processing and availability. Proceeding further, one can apply for the advance with their selected lending institution either online or offline. Let’s check out some essential steps one should take when availing a two wheeler loan.
Crucial Steps to Take When Availing a Two Wheeler Loan
– Check for loan affordability
The first and foremost step begins with checking how much financing you can afford when availing a loan for two wheeler. A few essential aspects help determine the overall affordability of the loan option you seek to avail. First, the EMIs payable on the loan allow you to gauge if you can accommodate them well in your monthly income without any strain to your finances. Secondly, the total interest payable on your loan for the entire tenure must be assessed to loosely determine the cost of your loan.
At last, you must also check the total loan liability, a value arrived at by combining the loan principal with the interest payable, for long-term affordability as per your overall financial standing. Use a bike loan EMI calculator to arrive at these payable amounts.
– Choose between traditional financing and 100% financing
Bike loans, at present, are available under two popular modules of financing, which are traditional bike loans and zero down payment bike loans, also known as 100% bike finance. Under traditional loans, you can avail financing only up to a certain percentage of the bike’s market value. The remaining needs to be self-financed and to be met via down payment.
As for 100% bike finance, you can avail the entire cost of your selected bike as a loan for two wheeler from your lender. While the latter seems to be a tempting financing option, it sure has its share of pros and cons one must know before choosing the loan type. The fact that the latter loan type serves as complete financing for your bike purchase also raises its lending risk for the financial institution. Thus, to easily avail this funding, you must carry a high eligibility and submit all necessary documents for bike loans when applying.
– Select a lender offering the best mix of loan amount and tenure
The loan amount you look forward to availing is crucial and must be assessed for suitability. The factors to examine include how much you need, how much you can actually finance yourself, and how much the lender is ready to provide as funding. Usually, some of the best lenders offers loans of up to Rs.5 Lakh as bike loans, which enables easy purchase of the selected bike model.
Along with the loan amount, you must check if the tenure available is suitable enough for breaking down the total loan liability into easy EMIs. Ideally, you can secure a tenure of up to 5 years for the repayment of your loan for two wheeler.
– Look for a lender providing quick approval
Apart from these, quick availability of financing is another aspect that often concerns prospective borrowers. A loan with fast approval enables hand-to-hand financing for instant bike purchase. Some reputed lenders in the market enable easy bike financing within a few minutes of approval for eligible applicants.
Plus, once the loan is approved, the financing is also disbursed to the seller/dealer within the next 24 to 48 hours based on the city of the borrower.
Once you have decided on these aspects, you can proceed to apply for a loan for two wheeler with your selected lender. When choosing the amount, it can be beneficial to opt for a higher down payment value than stipulated, which can help improve your chances of easy approval of the advance.
