Things to remember while taking a two-wheeler loan
When it comes to skipping traffic, two-wheelers prove to be much more efficient as compared to four-wheelers. If you are looking to go for a bike but are worried about finances, applying for a two-wheeler loan can prove to be a good option. However, before opting for a two-wheeler, you need to keep certain things in mind to clear the loan without any complications at the time of repayment.
Here are a few aspects to consider while applying for a two-wheeler loan:
- Eligibility criteria for a two-wheeler loan
The criteria for eligibility will vary from lender to lender. Hence, it is very imperative for you to check the criteria listed on their website before you go ahead and apply for a loan. Fulfilling all the criteria might help you to get the loan sanctioned faster.
- Interest rate of the loan
Apart from fulfilling the eligibility criteria, it is also imperative for you to check two-wheeler loan interest rate. It is simple to check the rate of interest nowadays. Just a simple Google search will fetchdifferent results for two-wheeler loans offered across India by different banks and financial institutions.
All you need to do is enter the website. However, it is very important to remember that interest rates vary from lender to lender. Hence, it is important for you to take your time for carrying out research about interest rates offered by different lenders.
IDFC FIRST Bank offers one of the most affordable two-wheeler loans with low-interest rates and down payment and a completely paperless process for your convenience. Upon KYC, you get an instant loan along with zero processing fee to make it even more affordable.
- Maximum loan amount you can get
Apart from the rate of interest for bike loans, different lending parties are known for having their limit for the loan amount. The loan amount is mostlydependent on the cost of the motorbike chosen.
- Your credit score
Bureaus such as CIBIL are known for formulating your credit score after assessing your credit history.You can boost your credit score by repaying your loans on time. Also, having a healthycredit score canhelp you withgetting a lower interest rateon your two-wheeler loan.
- The loan’s repayment tenure
The EMI of the two-wheeler loan is impacted by the tenure you choose to repay the loan in. If you were to apply for a loan with a long repayment tenure, the monthly instalments would be easier to pay off, however, keep in mind that you will have to make a higher interest payment. On the contrary, if you choose to go for a short-term repayment tenure, the monthly instalments would be higher. Borrowers that are looking to save on the total interest payment and do mind higher EMI payments towards the loan could opt for a short repayment tenure. It is advisable to go for a repayment tenure that suits your budget.
While getting a two-wheeler loan, it is important that you donot take a rushed decision, as this can lead to repayment problems in the future. So, go through the factors mentionedabove before you applyfor a two-wheeler loan.
