One of the most thrilling sensations is riding a motorcycle, hence purchasing one on loan with the finest terms makes the journey much more enticing. One of the greatest ways to pay for your preferred bike is a motorcycle loan; it also makes purchasing your preferred motorbike simpler and helps you avoid paying the entire amount at once.
- Eligibility requirements: Every lender has different qualifying requirements for a two-wheeler loan application. Still, most loan companies have comparable policies, including minimum and maximum age or living at a certain residence for at least one year. Before applying for a bike loan, review the eligibility criteria on the lender’s website to make sure you satisfy all the requirements. This will enable you to more quickly get the finest loan.
- Loan application procedure: Two-wheeler loans may be sought for and handled online unlike in past years. As long as you qualify for a loan, obtaining motorbike financing is easy and hassle-free.
Fill in your personal and financial information by navigating the motorbike loan application website of your lender. Tell them also about the motorcycle, including the dealer’s name, on-road pricing, and RTO location.
You will have to turn in certain paperwork online in addition to the application form. The following is a list of needed records for a motorbike loan:
- Identify cards, passports, PAN cards, and driver’s licenses prove of identify.
- Income tax returns, payment stubs, and bank statements provide proof of income.
- Mortgage records, house utilities, and title/deed to residential real estate prove of residency.
- Photographs of passport sizes
3. Investigate your credit score
Lenders or other financial organizations evaluate your credit score when you seek for a motorbike loan. On your two-wheeler loan, your interest rates would be lower the higher your score. Should your credit score be low, you will be presented a high-interest bike loan as a poor score lends less trustworthiness as a borrower.
With a credit score of 750 or higher, a motorbike loan facilitates simple acquisition. Besides, a good credit score can enable you to qualify for extra benefits as reward points and rebates.
Although different lenders charge different interest rates on two-wheeler loans, if your credit score is poor you should constantly evaluate all the offers you are receiving for the loan. Use credit bureaus such as CIBIL to see your credit score; they provide an online credit report.
- The rates of interest: Looking for a bike loan requires comparing the interest rates presented by many lenders. Spend some time looking at a lender that provides a decent interest rate fit for your motorbike loan want. Moreover, make sure you evaluate fixed and variable interest rates.
If you compare the rates, you may choose the lowest rate, therefore reducing the cost of your loan. The interest rates usually lie between 9.5% and 17%. You should also contrast the loan’s term with the monthly payments.
5. More Fees: A bike loan comes with more fees than merely interest. Additionally charged by your lender will be processing costs. The lender will affect these costs; however, they might reach 3% of the whole loan value. Choose a lender with lowest processing costs to help you lower the financial load.
- Loan running length: The loan term of your motorbike loan determines most of its equivalent monthly payment, often known as EMI. Of course, your two-wheeler EMI is affected by the loan amount and interest.
Your EMI will be cheap if you have a lengthy tenure, but you will pay more interest. Conversely, your interest will be less the greater your E MI. Thus, when seeking for a motorbike loan, carefully decide on the loan term.
The EMI calculator on your lender’s website will help you to figure your two-wheeler loan E MI. Knowing your EMI ahead of time will enable you to properly handle your money, therefore guiding future spending.
- Look for specials: Look at many lenders to see who is extending the greatest deals. Taking a bike loan during the festival season makes sense as various offers will be accessible. Furthermore look for deals like low-interest rates, free gold coins, free accessories, zero or cheap processing costs. Watch closely the website and social media of your lender for seasonal deals and discounts.
- Loan guarantee: Most loans need for you to provide your motorcycle as collateral or security. The lender or bank therefore has certain rights over your motorbike and may be able to seize it should you violate the agreement or fail to make loan repayments. Should you want to sell or trade your bike, you have to pay off a secured loan before the deal can be closed. You might choose an unsecured loan, but for the privilege you can anticipate a higher interest rate.
- The most you might be qualified to borrow: Most banks and lenders have their unique loan providing policies. Motorcycle loans mostly rely on your creditworthiness and bike pricing.
Always figure out the amount of money you need based on your requirements; ask for more than you will need to purchase a bike. Should your motorbike loan application be for a larger sum, the lender is more likely to reject it.
GET A QUOTE FOR YOUR MOTORCYCLE LOAN IN 2024
Although you will be closer to your ideal motorbike loan, you should not rush into conclusions. Think about all these elements before seeking for a motorbike loan. Furthermore advisable is to check over the terms and circumstances before seeking for a bike loan. By doing this, you will be able to acquire a motorcycle without sacrificing your piece of mind and obtain the finest bargain on your two-wheeler loan.