Bikes are the first choice of daily commuters and travel enthusiasts. Newly launched bikes with robust engines must have drawn their attention. Understanding that everyone may not afford a new bike, leading financial institutions and NBFCs (Non-banking financial companies) offer the best bike loans at affordable costs.
Customers who have decided to buy a two-wheeler, but find it quite challenging to choose a suitable loan can find a few effective tips to finance a desired bike more efficiently.
Some Tips to Buy a Desired Bike More Efficiently
1. Fix Budget
While financing a two-wheeler, customers need to determine their budget considering their disposable income and then calculate the EMI (Equated Monthly Income) that they can pay comfortably. Fix the budget and apply for a loan. Pay EMIs on time, manage debts, and maintain a lower credit utilisation ratio to maintain a high credit score.
2. Credit History and Credit Score
A credit score is a crucial factor of the whole functioning of loans. It indicates how reliable the applicant is to repay the amount. Checking the credit score before making an application for a bike loan is imperative. A clear and longer credit history means a good credit score that lenders want to sanction a loan.
An individual who has maintained a good credit score of 750+ can get the loan at a better interest rate as compared to individuals with a lower credit score. To assess the credit score, individuals need to refer to the official website of the CIBIL. Also, some lenders have a credit check option on their official websites.
3. Available Loan Amount as per Eligibility
Financial institutions set their own eligibility criteria to provide loans. Customers need to meet the eligibility criteria. Depending on how well an individual meets the eligibility conditions, the lender can provide 100% of the bike cost under specific schemes.
Moreover, it can provide the best interest rate. 2 wheeler loan interest rates can be as low as 0.99% with reputable lending institutions. Easy loan eligibility criteria are:
– The age limit is 18-65 years.
– The required annual income for individuals is Rs.96,000 and for businesses Rs.1,20,000.
Individuals should consider their budget and apply for a loan amount required instead of a high loan amount unnecessarily to avoid financial burden during the loan tenure.
4. Loan Tenure Suitability
A two-wheeler loan is usually offered with a flexible repayment tenure. One can apply for a maximum tenure of 48 months. Choose a suitable loan tenure to repay the loan in small EMIs. Selected tenure also impacts the 2 wheeler loan interest rate. Consider a short-term loan to reduce the overall interest costs.
5. Other Loan Costs
Customers should note that the interest rate is not the only cost. There are other costs also that need their consideration. They need to check the upfront processing fee, foreclosure fee, prepayment fee, etc.
These are the important factors that customers should consider to get the best two wheeler. Fill in an online loan application form at the lender’s official website and obtain loan amount.