A two-wheeler is undoubtedly one of the best vehicles out there. It gives great mileage, is affordable on the pockets, and is so compact that navigating traffic becomes a breeze. If you don’t have the funds to buy the vehicle, you can always take out a loan, which can be repaid in easy and affordable equated monthly instalments or EMIs. But you need to be aware of a few things related to the loan, whether it is the bike loan eligibility, the tenure, the costs associated with it or calculating EMI. Here are some things to keep in mind while applying for a loan for a two-wheeler.
You should compare lenders before taking the loan: It is necessary to compare the various lenders (banks, NBFCS, auto dealerships etc.) before you take out a loan for two-wheeler. This is the best way to find lenders who’re offering lower interest rates, waivers on additional costs and even free accessories necessary for your bike or scooter.
You should fit in the eligibility criteria: You also need to ensure that you fit the lenders eligibility criteria. You can use a two-wheeler loan eligibility calculator available on all lender websites to see if you qualify for the loan. The basic criteria includes your age (18-65 years or 21-65 years, depending on the lender), your employment stability, net annual income, credit scores etc.
You should determine the loan tenure and interest: Bike loans are provided for a maximum duration of 60 months. When you take the loan, you need to pay special attention to the loan duration. The higher the loan duration, the more money you have to pay as interest. It is best to opt for short or medium tenure loans to save on paying high interest rates.
You should know the payable EMIs: A very important aspect of your loan is the EMI. This is an amount you would be paying each month until your entire loan is paid off in full. It includes a portion of the principal loan amount and the interest levied on the loan. You need to ensure that you would be able to pay the EMI amount each month without fail. You must use the online tool known as the 2 wheeler loan EMI calculator (freely available for unlimited use on websites of all lenders) to determine the EMI amount you can pay each month.
You should consider the additional costs associated with the loan: While the interest is the main component of your loan, there are several other costs associated with your bike loan which include the processing fees. Lenders levy a processing fees ranging from 0.50% to 5% of the principal loan amount. Also, there are other associated fees like pre-payment charges (for repaying the loan before tenure), late-penalties (for delayed EMI payments) and foreclosure penalties (for defaulting on loan repayment) that you need to be aware of, when you take this loan.
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