Financing Your Bike Purchase: What You Need to Know
The need for swift and convenient transportation has made bikes a popular option, especially among youngsters. However, owning a bike, especially a newer and specialised model, isn’t cheap. Fortunately, you can look into getting a two wheeler loan that allows you to purchase your desired bike without heavily straining your finances.
Here are some of the benefits that you get with a two-wheeler loan for purchasing your bike.
- Your financial burden eases
- You enjoy quick and easy loan approval
- You get more bike options to choose from
- You get tax benefits
- Your credit score improves
- You get affordable interest rates
- You get additional offers and benefits
Owing to the high demand for two-wheeler loans, many banks, NBFCs, and financial institutions are offering these loans with lucrative interest rates. Read on for some effective tips to get your two-wheeler loan approval, along with getting great financial deals on it.
6 Effective Tips for Getting a Two Wheeler Loan to Purchase Your Favourite Bike
Check the Loan Eligibility Criteria
The process of exploring various two-wheeler loan lenders and schemes can feel overwhelming. To streamline the loan process, you can simplify things by narrowing down the options. One way to do that is by eliminating the two-wheeler loan schemes and lenders whose eligibility criteria are not suitable for you.
Firstly, having adequate knowledge of your loan eligibility is key. It can save you time and effort by allowing you to focus on the two-wheeler loan options that have a greater chance of approval.
Also, skipping two-wheeler loans that are unlikely to be approved can help you safeguard your credit score from any consequences caused by loan rejections.
Here is a list of some factors that two-wheeler loan lenders look out for:
- Your age
- Your income and employment
- Your credit score
- Your debt-to-income ratio
Research and Compare Various Bike Options
A two-wheeler loan for your bike offers the flexibility to choose from a range of bike options and makes it more feasible to afford an expensive bike.
Firstly, with a bike loan, you can explore various brands and models to select a bike with superior quality, advanced features, or a unique design. Moreover, if you desire a personalised bike with additional accessories such as lights, GPS devices, racks, and more, a bike loan can help finance those extras.
By having multiple options, you can research and compare different bike options and choose the one that offers low interest rates and monthly payments. Moreover, some lenders offer special deals and packages for availing their loans. As such, comparing the various offers available is key to getting the most value from your loan.
Choose a Lower Interest Rate
While looking for bike loan options, choosing a two-wheeler loan with low interest rates is key to saving money. These interest rates depend on various factors that banks, NBFCs and other financial institutions take into consideration. These factors include the loan amount, loan tenure, income and employment, etc.
Lower interest rates translate to lower EMIs, too, making your repayment process smooth and affordable. To get a two wheeler loan with low rates, all you need to do is optimise your approach. This can mean many things, such as:
- Waiting for seasonal offers
- Applying after you have received a hike at your job
- Making a larger down payment
- Applying once your credit score has passed the 750 mark
- Picking a lender that you have a long-standing relationship with
- Availing pre-approved loan offers
Deposit a Higher Down Payment
Depositing a higher down payment for your two-wheeler loan can be a smart financial decision, providing short-term as well as future benefits. Firstly, depositing a greater chunk of the total bike amount translates to lower borrowing for your two-wheeler loan.
Additionally, with a lower two-wheeler loan amount, your interest payment, as well as yourmonthly instalments, also get reduced. Overall, making a higher down payment for your two-
wheeler loan helps in saving your money in the long run.
Look for Additional Benefits and Offers
Banks, Non-banking financial companies (NBFCs), and other financial institutions offer an attractive range of advantages with their two-wheeler loans.
With an excellent credit score, you can get benefits like pre-approved loans, lower interest rates and favourable two wheeler loan terms. Additionally, some lenders even waive the
registration fees along with providing cashback offers, extra discounts and free accessories during festivals and holidays.
Plan the Repayment Properly
Having a proper repayment plan in place is important while taking a two-wheeler loan. This helps you maintain adequate financial discipline by providing a structure of how to proceed with your two-wheeler loan payments.
Missing out on your monthly instalments or defaulting on your loan can have adverse effects on your financial health. This may result in a lower credit score, default penalties, late fees and more. You can take the assistance of a bike loan EMI calculator to calculate the monthly instalments on your two-wheeler loan and plan your finances accordingly.
Opting for a two-wheeler loan for purchasing your dream bike can be a smart approach. However, you need to do thorough research before zeroing in on a loan offer. Like any financial decision, opting for a two-wheeler loan requires your adequate time and effort. With proper planning, getting the required finances to own your dream bike becomes easy.
