You may find purchasing a bike on EMI (Equated monthly instalments) to be a convenient option as the process makes it easy for you to get a two-wheeler even if you are not having the entire price amount currently. Repay back the loan amount over a loan tenure that would be comfortable for you besides carrying on your regular expenses. With lenders making it easier for you through online loan applications and disbursal, you can now get a loan faster than in earlier times. Read on to learn how you can avail a loan for your two-wheeler by following some simple steps.
While applying for a loan, take note of the following in order to make the process hassle-free for yourself:
Conduct research about the lenders
You will find a number of lenders who would offer the necessary funding for purchasing bikes of various models and over a range of prices. But the features of the loans may differ among the lenders as well as the benefits that you may expect from them. So, it is critical to research and analyse the offers by available lending institutions that can provide suitable financing as per your need. After you do this research, you will be able to shortlist financial institutions that stand with some of the best loan offers for you.
Look for seasonal offers and discounts
Timing your bike purchase and the bike loan application can be crucial to turning things in your favour in the long run. For example, various lending institutions aim to increase demands for their bike loans by extending attractive offers. The benefits under such offers usually include a reduction in the interest rate compared to the standard rates during other times of the year. If you have the required eligibility, you can also get to negotiate with the lenders for a higher discount that can be significantly beneficial in the long run. Look out for festive discounts to nail a great deal in terms of two-wheeler loans.
Check the loan features offered by different lenders
The attractive offers should not be the only basis for you to determine the lender from whom you should borrow. There are other essential features that you should consider as well to select a suitable lender determination. Some of these critical parameters include the maximum loan amount available, the flexibility of the loan tenure, repayment options, etc. You should also consider the time taken for loan application processing, approval, and disbursal of the loan. LTV or Loan to Value is also important and it determines the maximum amount of loan that you can get along with the down payment that you have to undertake.
Compare the rate of interest offered by lenders
Before selecting your lender and finalising the deal, you must make sure to compare the rates of interest offered by different lending institutions. It is an important step as the interest rate would determine the overall affordability of your bike loan. You can also check other rates and charges applicable to decide on the final amount.
Meet the eligibility criteria and document requirements
Once you have finalised the lender, check with him regarding the eligibility and documentary requirements. You need to fulfil these for a successful application. Usually, the lenders fix the eligibility criteria by considering the prospect’s age, monthly income, credit score, repayment capacity, etc. The documents would provide the proof of your declaration so that you go through a smooth loan processing. While preparing to get a bike on EMI, go through some important points like features of the loan, interest rate, discounts, etc. Based on these, you can select the lender and a suitable loan amount that you can repay back comfortably.
