Want two wheeler loan then you are on the right page. Always wanted to own a bike but had no idea about how to finance or get a two-wheeler loan? Don’t worry as you are not the only one struggling with the same question. Many youngsters, after applying to colleges look forward to purchasing their dream bikes, wherein financing is often a prominent hurdle.
If it is your first time in buying or purchasing a bike but you are totally confused about where to go regarding the finance, the required documents, the down payment, EMI payable, and the likes, then worry not. Here, you can find solutions to and the necessary details about how to buy a two-wheeler on a loan.
First, let’s discuss the benefits of owning a two-wheeler on a loan.
- You get to choose a suitable budgetfor the bike model you desire.
- You can use a guarantor or co-applicant to get the funds you need.
- One can avail funds to buy superbikes as well.
- Interest rates are reasonable.
- One can enjoy a wide spectrum of loan repayment options.
- Repayment of loan is available in affordable EMIs.
- Paying EMIsin time allows you to build your credit history.
- No additional burden on your pocket.
Now that you know the benefits of a two wheeler loan for bike purchase, let’s now talk about the required documents.
- Identity proof: PAN card, Voter’s ID, Passport, Driving license.
- Address proof: Aadhaar card, bank passbook, Voter ID card, electricity bill, gas bill, telephone bill, etc.
- Income proof for salaried individuals: Salary slips of last 3 months, IT returns of last 2 years, bank account statements.
- Income proof for self-employed or business owner: Bank statements, IT returns, audited financial statements, and in some cases trade license may also be required.
- For students: Students can seek the help of their legal guardian who still needs to fulfil the above requirements and must be 18 plus with a valid driving license.
With this information in place, there still are many things that should be kept in mind before approaching your desired lender to finance your bike purchase.
Points to Keep in Mind while Applying for a Two Wheeler Loan
Look for a lender that provides affordable interest rates
This is the first step before you apply for a bike loan. Ensure that you undertake a detailed research to sort the best lenders and available offers. Analyze all the choices that many lenders offer. Next, you can make comparisons based on interest rates levied, other loan charges and terms applicable. It will help you find the best and the most inexpensive option.
Keep EMIs payable in check
Your interest rate decides the overall loan liability payable. It also has an influence on your EMIs payable. Selecting a loan with a reduced rate of interest can help keep your EMIs low too. Make sure to select a suitable tenure with the help of an EMI calculator as well to make a better financing decision.
Compare floating rates versus fixed rates
Lenders offer you both floating interest rates and fixed interest rates for interest levy. Floating rates change as per the changes in the market rates while fixed rates remain constant irrespective of market rate changes. With this info in place, you can also find floating rates at a notch lower than levies based on fixed rates.
Enquire about foreclosure charges
In case you are considering the foreclosure of your two wheeler loan, you can consider the charges involved before deciding. Some lenders may charge you a fee for this while others may not depending on the loan option selected. Note that foreclosing your loan can help you save on interest costs too.
Checklist for Your Bike Loan Application
Follow these ‘YES’ or ‘NO’ guidelines for improved chances of quick loan approval:
- Are you planning to send application to multiple lenders for your bike loan? (NO)
- Research well before you applying? (YES)
- Are you signing your loan agreement without going through the policies in detail? (NO)
- Examine processing fees and other charges? (YES)
- Forget to pay your EMIs on existing advances in time? (NO)
- Evaluate your credit score before you apply? (YES)
- Choose an EMI you cannot afford? (NO)
- Do you need to undertake interest rate comparison on various loan offers for the best option? (YES)
- Submit all the required documents without fail? (YES)
- Forget to foreclose your loan if you can? (NO)
It’s all about the smartness you show before you make any financing decision for big-ticket purchases like two wheelers. The right choices can save you a lot of money on down payments, EMIs, Interest rates, insurance, etc.
Above all, it is critical that you hold a good CIBIL Score. An applicant holding a high credit score stands higher chances of getting his/her application approved immediately than delayed or rejected altogether.
Now that you know how to buy your dreambike with a two wheeler loan, you can proceed accordingly. If all these above-mentioned points are kept in mind before applying for a loan application, bike ownership is simplified especially for first-time buyers.