With inflation shooting upwards, managing finances has become a task. And if you plan to make a big purchase, say a bike or two-wheeler or car, financing may get tougher. But not with a two wheeler loan or car loan.
If you are looking to buy a motorcycle or scooter, going for a two wheeler loan instead of an outright purchase is the ideal way to proceed. You would not want to be left borrowing money from others when you are faced with an unforeseen emergency later after all. However, there are several things you must keep in mind before availing a bike loan. Take a look:
Eligibility
First things first, before going into the details of choosing a financial institution to get a loan from, you need to know if you are eligible for it in the first place. You can contact any reputed financial institution to know your two wheeler loan eligibility. Generally, most of the two-wheeler loans are approved unless you have a poor credit score, have defaulted a loan repayment in the past or for any other reason that a lender thinks makes you ineligible for the loan.
Interest rate
Once eligible, you can begin looking for the best two wheeler loan interest rates offered in the market. You can do your initial research online by visiting your preferred bank’s or financing institution’s website. Besides, looking up on sites that help compare rates by collating data from different lenders is a good idea as well. Furthermore, check with the lender for any ongoing offers or discount on the processing fee to get the best possible deal.
Loan amount
After finalizing on your finance partner, you need to ascertain the required loan amount. The more amount you borrow, the less you will have to pay in the form of a down payment. You can use the saved amount for other household expenses or invest it for better returns. Mostly, 80 percent of the loan is allotted on the on-road price of the vehicle. However, during offers and festive seasons, up to 100 percent financing is also available.
EMI plan
Gauge the recurring expenses you will be paying every month. Based on your income and the monthly expenditure, arrive at a figure that you can easily manage to avoid cheque bouncing charges or, worse, defaulting. You always have the option to go for a longer tenure, so the monthly EMI is low.
Loan process time
While searching for your preferred finance partner for a two wheeler loan, do read online reviews about your chosen money lending institution. Look for the time the whole process takes from your submission of documents to the final approval and disbursement of the loan amount. Choose the one with the quickest approval process, so you do not have to wait long to ride your dream vehicle.
Tata Capital offers the best two wheeler loan interest rates and easy repayment options. Check your two wheeler loan eligibility with Tata Capital today, and bring home that much-awaited new family member.
