Covid-19 has massively impacted the way people travel. You may be used to travelling by public transportation, which might not be a good option nowadays. The safe and affordable solution to this problem is using a two-wheeler. It is one of the most convenient ways to travel to work, and buying a two-wheeler is not that difficult. Many lenders can finance a bike of your choice if you are running short on cash.
You can buy a scooter or a bike with the help of a 2 wheeler loan whether you are salaried or self-employed. It can help you in purchasing the vehicle without worrying about paying the entire amount at one go. You can pay the borrowed amount along with interest, through monthly EMIs without any problem. Lenders will sanction your loan based on the cost of the two-wheeler and stipulated EMI. The interest component on your EMI will reduce every month after you pay your monthly EMI. You can always use a two-wheeler loan EMI calculator to check your proposed monthly EMI before applying for the loan.
How to check if you are eligible for a 2 wheeler loan or not?
Lenders will approve your loan only if you are 21 years old or above. You must repay the loan before you are 60 years of age. If you are self-employed, then lenders can allow you to repay your loan before turning 65. Having a stable job, for at least one year, before applying for a loan increases the chances of getting the loan sanctioned. If you are self-employed, then you must be in the same line of business for at least one year. Having an excellent CIBIL score is necessary. Always keep your credit score around 700-750 before applying for a 2 wheeler loan.
Feature of a two-wheeler loan
There are many features of a bike loan. Some of them are given below:
1. Lenders can finance up to 90-95% of the cost of bike and scooter. You will have to arrange the rest on your own for a down payment.
2. 2 wheeler loan interest rate can vary from 9.5% to 17% per annum depending upon your salary, tenure, loan amount and your CIBIL score
3. The maximum period through which you can repay your loan is five years
4. Anyone can apply for a loan online with minimum documentation
5. Some lenders offer special EMI schemes for easy repayment of the loan amount
Some useful tips for choosing the right two-wheeler loan
Here are some tips through which you can get the best deal on two-wheeler loans.
- Compare different lenders and check which lender is offering you a lower interest rate
- Buy your two-wheeler during festival seasons as many lenders have additional offers such as zero processing fees or free insurance.
- If you have an excellent CIBIL score, then you can negotiate with the lender for a lower interest rate
- Use a two-wheeler loan EMI calculator to decide on the EMI you can afford. Do not over-borrow the amount as you might struggle to repay in the future.
- Lenders check whether you have taken any other loan or not before approving a loan request. Always pay your credit card bills or a personal loan thoroughly before applying for a two wheeler vehicle loan.
- Choose a repayment plan with flexible EMI so that you can repay the whole amount quickly. Pay higher down payment amount for a lower repayment amount and interest.
- Always read the documentation before signing the loan agreement
- Check whether your lender allows you to prepay the loan without any additional charges. Check out the processing fee, costs, etc.
- You can always opt for a longer loan tenure if you think you will struggle with the repayment. But keep in mind that with the long term, the interest amount also increases.
When researching a two-wheeler to purchase on finance, do not settle for what one dealer offers you. Look around and check offers from other lenders as well. There are chances that you might get a better deal. Choose a lender who is reputed and has robust processes so that you can get the loan easily without any hidden charges.