August 4, 2020

Planning to Take a Loan for Two Wheeler? Here’s What You Should Know

Whether, its weaving your way through the traffic, going for a picnic or giving in to wanderlust and going on a long drive, a two wheeler lets you do all that and much more. You don’t have to put your dreams of owning a two wheeler on hold simply due to lack of funds. With so many financial institutions offering a loan for two wheeler, getting one is now easier than ever before. With simple documentation, applying for a loan is a breeze and you can own one within hours!

So before you go to check the eligibility criteria and getting your documents ready, here are a few things that you should know.

1. Know your Loan Amount Eligibility – Before you choose the bike, it is important to check with the eligibility criteria. It remains the same across lenders, but the terms may differ. Most lenders will consider your credit score, your income, debt-to-income ratio before judging your repayment capacity. Based on a combination of all these factors, lenders decide on the amount they can lend you. Of course, you can negotiate with your lender here and again different lenders will have a different opinion on it. So it always pays to do your research and shop around before you go ahead with a two wheeler loan.

2. Plan your purchase – If you wish to buy a two wheeler, chances are you have been thinking about it for quite a while. It is advisable to purchase a two wheeler during the festive season or at the end of the year when dealers offer attractive discounts on prices and other offers like free insurance, etc. Even lenders come up with offers like processing fee waiver, lower rates of interest, etc. You can get a good deal on your two wheeler loan during this time.

3. Create a Repayment Plan – A lot of people who avail a two wheeler fail to make the payments on time and, therefore, risk default. This creates a negative impact on your borrowing profile, making it difficult for you to avail finance in future. Therefore, it is important to have a plan in mind. Calculate the EMI based on the loan amount, tenure, and interest rate offered. You can use the online EMI calculator. This will give you an idea if you will be able to pay it off with ease. If you feel it is going to be a burden on your finances, you can extend the loan tenure to bring down the monthly EMI. Your lender can help you with this unless you have reached an amount you are comfortable with.

4. Getting your Documents Ready – Finally, check with the lender beforehand about all the documents required. Get all your KYC documents, ID/Address proof, and income proof ready. Also, don’t forget to get the bike papers ready as some lenders may require the bike to be hypothecated.

Finally, once you have got all the documents ready, you can now proceed to apply for the loan online. The application process is easy and only requires you to fill an application form. So you see, with the loan for two wheeler so easily available your dream bike won’t be a dream anymore!

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Reliable Two Wheeler Loan Company to Fulfill Your Needs (Link)