Buying a two-wheeler for the first time is an unexplainable feeling for most. No wonder that most of the youngsters would like to buy their own ride but the one thing that can stop them is the price of the two-wheelers. Some of us would like to buy the best bikes in the market, which can cost more than Rs. 80,000. In such instances, financial assistance comes in handy. If you are one among those bike enthusiasts, you would need to know about the various stages in availing a two-wheeler loan.
The first stage - choosing the two-wheeler:
Note that the price of a few bikes can extend beyond your purchasing power. Hence, it is essential to narrow down on your favourite bike based on your income and repayment capabilities. Once you have decided on your two-wheeler, it is easier to know the bike loan options and the various lenders offering the same. The lenders can provide a rough estimate on the loan amount and the interest rate based on the price of the two-wheeler. Note that the on-road price of the bike is always higher than the showroom price and hence you should decide on the bike accordingly.
The second stage - choosing the lending institution:
Due to the increase in popularity of bike loans, almost all the financial institutions in the country provide two-wheeler loans. However, with multiple options available, it is easier for you to end up with a not so significant lender. To avoid such circumstances, you can use an online EMI calculator on the lender's websites to know the details of the loan like principal amount, interest rate, tenure, monthly bike EMI and so on. Having so many options also empower you to negotiate with the loan providers for better deals.
The third stage - assessing your income capabilities:
Getting ready to be pre-approved is the best way in any lending process which includes the two-wheeler loans as well. To qualify for the loan, you should assess your income and repayment capabilities and have a steady repayment strategy in place. The financial institutions refer to the credit score of the individual before approving the loan. The credit score is just an indicator of your creditworthiness, and you stand higher chances of loan approval with a higher credit score. You should make your payments on time and have heavy scrutiny of your existing debts to have a better credit score.
The fourth stage - discussing terms & conditions with the lender:
The fourth stage is perhaps the most crucial as it involves the discussion between you and the lender before you sign the loan papers. You need to understand the various terms indicated in the loan agreement so that there are no surprises later. A customer-friendly lender would always apprise you about multiple aspects of the borrowing process before the loan processing, which can help you know about the tenure, interest rate, applicable charges, etc. A longer-term might attract a lower bike EMI and vice versa. Hence choosing an option based on your repayment capabilities and convenience is the best way.
The final stage - documentation and approval:
Most of the lenders have a simple documentation process for the benefit of the borrowers, and you need to submit essential KYC documents and income proof to get things done. The lender would assess all the documents and approve the loan amount directly to the two-wheeler dealer in a short period.
Conclusion:
Having a solid plan
before availing such types of loans can save you from hassles, and you can bag
a great deal that can provide you with a brand new bike.
