A Complete Guide to Choosing the Best Two Wheeler Loan
Do you wish to buy a new two-wheeler? Irrespective of your decision to buy a bike or scooter, there is a convenient option available to you to fund your expense with a readily available loan. This article will help you get aware of all the relevant details regarding a two-wheeler loan and how you can pick the best option of the lot.
In recent times, there has been a significant spike in demand for two-wheelers in India, especially among the youth. As per a recent report, the sale of two-wheeler vehicles has risen in the last decade compared to the 2001-2010 period. Moreover, the number of units sold during 2018-19 is estimated to be above 20 million two-wheeler vehicles, which surpasses all the previous sales records. The most significant driving factor in determining the surge in the sale of two-wheelers is the easy availability of motor vehicle loans. These loans are offered by both financial institutes as well as NBFCs. And, it’s not just confined to metropolitan cities, but these loans can also be availed by people living in the remote areas of the country.
There are multiple ways of approaching an organization for the approval of your two-wheeler vehicle loan. For instance, a person can visit the nearest branch of a financial institute or NBFC or contact customer care for other convenient options. With the recent increasing digitalization across the country, it’s also quite easy to get a two-wheeler loan by visiting the company’s official website or using the mobile app.
Things to consider before availing a two-wheeler loan : –
A two-wheeler is undoubtedly a quick means to commute in the present traffic-laden roads. Hence, if you’re planning to buy a two-wheeler of your choice, many financial institutes and NBFCs are offering loans to help you manage your income as well as expense efficiently. But before you avail of a two-wheeler vehicle loan, here are some factors that you need to consider:
- Eligibility criteria:
The foremost thing that a person should consider checking before applying for a Two wheeler loan is the eligibility criteria set by the financial institutes or the NBFCs. It’s because there are no particular guidelines for the eligibility criteria, and every lender is known to have different eligibility criteria for various services. Therefore, it would be wise to interact with lending organizations and acquire a thorough understanding of the eligibility requirements. Create a shortlist of lenders whose eligibility requirements are convenient for you to fulfil. Subsequently, this will help you in acquiring your dream bike most efficiently by paying minimum finance charges.
- The maximum loan amount offered:
There could be a major difference in the amount of loan provided by lending organizations. For instance, you will find many NBFCs providing loans for the entire amount of the two-wheeler vehicle, whereas some others will be able to finance only a certain percentage of the vehicle’s price. Therefore, it becomes vital for you to know the exact amount or percentage that a lender is willing to offer for the vehicle. Further, the amount of your down payment depends on the amount of loan taken, as both are inversely proportional to each other. So make sure that you talk to the lender and be clear about this factor.
- Repayment Options:
After paying the down payment, you have to repay the remaining amount of loan every month along with the additional interest. Therefore, it becomes crucial to obtain a complete understanding of the Two wheeler loan interest rates, tenure, and EMI that are offered by different lenders. It’s advisable to pick the lender that offers flexible repayment tenure and affordable interest rate. Lastly, make sure you don’t avoid knowing the exact amount of prepayment expenses and processing fees charges, as they will have a direct impact on the loan amount.
- Check the loan disbursal time:
In the ever-evolving technological world, all the lenders are trying to reduce the processing time of the loan and disburse money in real-time. It’s possible due to the streamlining of various processes with the use of the internet. Therefore, it’s recommended that you keep the required documents such as address proof, income tax details, identity proof, etc., ready to facilitate hassle-free loan processing and disbursal.
- Keep a note of the specialized schemes:
Nowadays, lenders offer various special schemes on two-wheeler loan. For example, a few lenders might provide you with a loan amount for the entire amount of the two-wheeler, along with an additional insurance scheme. However, these schemes are confined to some particular two-wheeler vehicles. Hence, you should enquire on the available schemes to know if there is some additional benefit that can be acquired from a particular lender.
Before approaching any lender, you need to consider all the points mentioned above, so that you can obtain your dream bike at the best price possible.