Planning to buy a two-wheeler? Irrespective of whether you wish to buy a moped or a motorcycle, you can consider taking a loan to fund your purchase. Here are some tips that will help you choose the best two-wheeler loan in India.
It is no secret that Indians love their two-wheelers. Two-wheeler sales have doubled in India between 2011 and 2019. In 2010-11, the sales stood at 11.7 million vehicles, and by 2018-19, the number has increased to more than 20 million units. A key driver behind this growth has been the increase in the convenience of availing two-wheeler loans in India from banks as well as non-banking financial organizations. It is true for not only metros but smaller towns also.
You can approach lenders in multiple ways, by visiting the nearest branch or contacting the customer care. It is easy to apply for two wheeler loans online, also. Here are some tips for choosing the best two-wheeler loan in India.
1. Review the Eligibility Criteria
Before applying for a two wheeler loan in India, you must review the eligibility criteria required to avail of a loan. Different lenders have different eligibility criteria. Therefore you must interact with the lending institution to create a shortlist of lenders whose eligibility criteria you fulfil. This will improve your chances of availing bike finance.
2. Check out Maximum Possible Amount of Loan That Can Be Availed
The amount of credit offered by lenders can vary significantly. Certain lenders may provide only 80% of the two-wheeler’s on-road price whereas others may offer 100% of the price. Find out what is the maximum loan amount a lender will offer you. The higher your loan amount, the lower would be your down payment. Some lenders offer loans over and above the on-road price to cover the cost of accessories.
3. Choose A Lender Who Offers Flexible Repayment Options
You have to repay the loans in equated monthly installment, and hence, it is of utmost importance to understand tenure, interest rate and EMI you have to pay. Look for affordable interest rates and flexible tenures. The EMI of your loan is directly dependent on the loan tenure and interest rate, so the longer the tenure, the lower is the EMI. Make it a point to know the processing fees and prepayment charges as they directly affect the cost of the loan. Do not forget to use the EMI calculator to know the EMI that is best suited to your requirement.
4. Check How Quickly Loan Can Be Processed
Over the last few years, lenders have been progressively reducing the loan processing time. This is largely due to advancements in technology and streamlining of processes. If your documents are available and in order, then you can expect your loan to be processed smoothly. Therefore it is advisable to make a list of all the required documents such as proof of address, proof of identity, proof of income etc and keep multiple copies handy to submit.
5. Enquire About Specialized Schemes
Nowadays, lenders provide special schemes for two-wheeler buyers. These are designed as per the needs of customers. For instance, some lenders will offer a two-wheeler loan equivalent to 100% of the two-wheeler’s value. However, this is applicable for certain models under specific schemes. A buyer must enquire in detail about these schemes and offers.
Follow these tips will help you get a loan at the most affordable interest rates.
