Things you need to know before you get a two-wheeler loan

So, you have planned to purchase a two-wheeler. Is this your first bike? Do you, by now, feel a profound sense of excitement? Are you looking forward to not standing in the winding bus queues, train rush, and say goodbye to an extra charge on cab bookings? Well, owning a two-wheeler brings to you a whole new world of convenience.

If you are keen to get a loan to buy a two-wheeler, here are the few things to know:

Quick processing

Once you have found the bike of your dreams, it is hard to wait! Discuss with your lender about the processing time for two-wheeler loan disbursement. Once you submit all the documents required, the loan disbursement should happen within ten days. Most lenders directly pay the two-wheeler dealership. This also helps in saving your time and effort.

Get the best deals

A simple online search will give instant results for a bike loan. However, interest rates differ from lender to lender. Therefore, invest some time, talk to various lenders, and compare the interest rates and overall expenses.

Your bank and income statement, currents assets and liabilities, and your credit score if you have availed credit before are the things that play an important role in availing your eligibility for a loan. On the other hand, having an outstanding credit track-record gives you the capacity to bargain for the best interest rates.

Also, take advantage of special loan offers and discounts offered by vehicle manufacturers as well as loan providers. Zero processing fees, free accessories, and free insurance are some of the popular offers and discounts.

Maximise loan amount

Borrowing the maximum on-road price can give you 80 percent or even more of the money expected to purchase your desired two-wheeler. Since you are going through all the rules and regulations, documentation and paying the loan processing fees, it makes sense to maximise the loan amount. This gives you the flexibility to cope with your other financial responsibilities with ease.

Borrow within your capacity

However, just because a bike loan is available easily, do not borrow beyond your budget. Calculate the EMI you can easily pay each month. Over-borrowing will raise your monthly EMIs and can disrupt your overall budget. Worse, you might be unable to pay and could lead to defaulting. This can further reduce your chances of availing future credit.

Plan a re-payment schedule

Discuss, understand, and schedule the re-payment plan. Stick to the same so that you can continue to enjoy the advantages the vehicle offers to you. Decide on a system that allows you flexible EMIs and enough grace periods, so that you never let a lapse come in your plan. Give standing instructions to your bank or providing a bank mandate to the loan provider guarantees that you never forget an EMI.

Lastly, make sure that you use the vehicle only for the planned purpose. Do not make any unlawful modifications to the vehicle. This might make the bike insurance null and void.

You can be anywhere in India and still avail of a two-wheeler loan within a few hours of making an inquiry. Many loan providers have their agents stay in constant touch with their customers updating them on plans and payment due dates. Thus guaranteeing they do not accidentally miss their EMIs.