Financing a motorcycle is the way of the wise. It is the only way to keep away from spending a huge chunk of hard-earned money. But how can one choose the right bike loan? Well, it is simple. Follow these while searching for a bike loan –
Research about the lender(s)
While on the hunt for a Two wheeler loan, researching about the lender is a must!
There are countless lenders in India these days. Hence, it is natural for different lenders to have varying terms and conditions. Researching a lender allows the loan applicant to ensure that the lender’s terms and conditions are suitable for them. Further, it helps them know the interest rates, tenure period and the loan amount of different loan schemes. It is recommended to search for various lenders online before finalising one. Ask about their prepayment charges, loan rescheduling charges and processing fees.
Learning about the details of a loan ensures that the same does not transform into a financial burden.
Be considerate about the loan amount.
Choosing a lender ready to cover 90% to 95% of the bike’s MSRP is best. To keep expenses low, applying for a 0 down payment loan is best.
A loan is also a financial burden. An expensive bike will only add to the financial obligations of a loan applicant. Being considerate about the loan amount is crucial when choosing a bike loan and should not be neglected.
Go for a low-interest loan scheme.
Consult the representative of the lending institution about the interest rates before applying for a loan. Judge whether the interest rate of the loan scheme is affordable or not.
The interest rate of a loan scheme depends on the –
- Age of the applicant
- The monthly or annual income of the applicant
- The employment status of the loan applicant and
- The credit score as well as the credit history of the loan applicant.
Applying for a loan is beneficial only if it does not become a financial burden. To keep a bike loan from adding to the financial responsibilities, opt for affordable loan interest rates.
Apart from the information mentioned above, use the bike loan EMI calculator. It is a free tool that will be available on the lender’s website. This calculator helps you calculate the interest rate and time.
It is never a bad idea to look for special offers!
Banks and NBFCs (Non-Banking Financial Institutions) launch attractive loan schemes during the festive season. It’s best to apply for a loan during these festive seasons in a bid to get –
- Low-interest rates
- 0 down payment schemes
- 0 processing fees and a lot more.
One can also talk to their existing lender instead of finding a new lender. This is a great way to get a loyalty bonus, such as attractive interest rates.
Financing a bike is advisable for money-conscious individuals. Applying for a bike loan is also one of the best ways to boost one’s credit score. For more details, consult a reputed lender today!
