Funding a two-wheeler with the help of loans is noticeably the most economical and secure approach. Loans help you buy the choicest two-wheeler without spending your savings. And to brace this, given below is the complete list of reasons.
The interest rates of a Two wheeler loanmostly start at 7.25%, allowing you to purchase and pay off your loan through small EMIs comfortably.
Flexible Repayment Method
The repayment methods of these loans are very flexible. You can choose EMI and tenure according to your comfort. Moreover, you can also use a bike loan EMI calculatorto get an idea of the EMI amount.
The time taken for documentation and approval is significantly less for a two wheeler loan. Some also offer options to apply online, simplifying the proceedings.
Minimum Down Payment
Most two-wheeler loans facilitate a small down payment. They offer finances up to 95% of the total price, helping you buy your dream bike at a low cost.
The bike loan EMI calculator is the unique feature offered by Bajaj Auto Finance that helps compare and decide interest rates and EMIs before making the final decision. Moreover, two-wheeler loans like the ones provided by Bajaj Auto Finance allow you to borrow 100% of the ex-showroom price.
Owning a two-wheeler is a popular decision for many Indians. However with rising production costs and ever-increasing ex-showroom prices, one has to take a two-wheeler loan. So what are the things that one should keep in mind while comparing a two-wheeler loan? Well, this post will shed light on some of those factors.
There are several aspects that one might need to keep in mind while comparing two-wheeler loans from different lenders. Some of those considerations are as follows –
Every lender has its set eligibility criteria which may or may not differ from other lenders. Hence, the first step that one should take is to make sure that they are meeting the eligibility criteria set by the lender before they apply for the Two wheeler loan.
One must also make sure that the loan amount they will be getting will be enough for them to buy the two-wheeler they want. Some lenders do not ask for a down payment from the loan applicant but at the same time, one must carry out the necessary research so that the rate of interest will be within their budget.
The loan process should be seamless and the time taken to complete all paperwork should be short. For the best results, it is ideal to go for lenders that prefer e-paperwork instead of traditional paperwork as the former takes less time.
Finally, it is best to go for lenders that offer a dedicated bike loan emi calculatortool on their website so that the applicant can check out whether or not the minimum EMI the lender will be charging will be within budget or not.
If you want to buy a two-wheeler vehicle but are concerned that you cannot afford the whole amount at once, you can consider availing a two-wheeler loan. If this is the first time that you are applying for a loan, here’s a complete guide to choosing the best.
Research– One of the most important things before applying for Two Wheeler loan is to do a thorough research. Check the various loan offers from different lenders and compare them based on factors like rate of interest, EMI, plan benefits, tenure etc.
Interest Rate- Different lenders offer different interest rates on two-wheeler loans. The interest remains constant throughout the year, but the amount increases. Hence, select the finance company that has the minimum interest rate.
Loan Repayment- The tenure of repayment and EMI varies for different loan plans. You can calculate it by using the Two wheeler loan EMI calculator. This will give you an idea about the amount of EMI that you need to repay.
Tenure of the Loan– There are many tenure options available on two-wheeler loan, starting from 12 months to 48 months depending on your loan repayment capacity. The tenure of the loan repayment can be adjusted according to the necessity.
Offers- During festivals and other occasions, finance companies provide some additional offers and attractive discounts on the loan like low-EMI, low rate of interest, flexible tenure etc. You can make the most out of such occasions to get a better deal. This will allow you to save money and you canalso buy your desired vehicle at the best price.
Hope these tips can help you find the best two-wheeler loan for your needs.
When talking about day-to-day driving, eating food from the nearest mall or visiting a nearby city, two-wheelers are preferred mode of commutation for most people in India. However, you should ideally take a bike loan when purchasing a new two-wheeler instead of making cash payment upfront.
Advantages of a Bike Loan:-
For two-wheelers, lenders offer low-interest rates for ease to make significant transactions, and these can be calculated by bike loan EMI calculator. The final interest rate usually depends on the income source of the borrower, credit score, the two-wheeler price and demand variation.
Quick Approval of Loans
Quick clearance of two-wheeler loans means fast payment for your two-wheeler when you purchase the same on financing.
Reduce the Burden on Your Budget
Another advantage of bike loans is that you can conveniently save while repaying your loan via instalments.
High Coverage of Loan Amount
If you are on a low budget, you can easily buy a two-wheeler with a higher bike loan coverage. You can always calculate your interest rate in a bike loan EMI calculator and decide the sum you want to borrow.
The simple benefit is you do not have to spend large sums of capital, which affects your liquidity adversely. If you use cash rather than a bike loan, the liquidity will be affected adversely.
Purchasing the preferred two-wheeler on a loan can be tricky if you aren’t sure about the lender and the quoted interest rates. Therefore, it is necessary to be aware of these 4 factors to get the best interest rates on your credit line.
Lenders instill faith in your repayment history upon checking your credit score. Therefore, a higher credit score automatically qualifies you for a lower two wheeler loan interest rate.
Cost of the Bike
A two-wheeler loan for a budget-centric bike has better chances of getting approved and attracting nominal interest rates.
In case you choose to make sizable payment upfront, it is possible to get a better deal on the two wheeler loan interest rate as the lenders are expected to show more faith in your repayment capabilities.
If you want to procure a lower interest rate for your two-wheeler loan, you should opt for a longer tenure and consider prepaying the same after a certain point in time.
In addition to these four factors, your job, financial stead, annual income, and credit history also have a bearing on the interest rates.
After selecting the model of the two-wheeler that you want to buy from many options available, the next thing you need to determine is how to finance that bike. There are two prominent options available when it comes down to it. You can either choose to pay cash or avail a vehicle loan. Let’s consider why availing a Two wheeler loan is the smarter way of financing
You can get various gifts and offers like:
Reduced interest rates
Zero down payment schemes
Most bike sellers on the market today are in partnership with bike finance companies to provide rapid loans to customers. The paperwork required for these loans is minimal, and the processing time is extremely small.
More often than not, there is a glaring difference between the bike you ride and the bike you want. A Two-Wheeler loan can readily fill up this gap by offering the needed financial support to help you purchase the vehicle of your dreams.
Here are some of the best and most productive ways by which a 2 Wheeler Loan empowers you towards the bike that you have always desired:
Easy Repayment Schemes
Bike loans can be repaid as monthly EMIs. This ensures a state of financial well-being whilst allowing you to save the cash reserves for an emergency. For someone looking to buy a pricey back without financial support, paying the entire sum at once is often next to impossible.
Better Payment Restructuring
Every lender offers a Two Wheeler loan EMI calculator. Once you have an idea of the interest rates, you can calculate the monthly payments as per your preferences. You can restructure the total payable amount in any manner you like by modifying the tenure.
Easy to Apply
A two-wheeler loan is probably the easiest to apply for. Besides, if your credit score or profile is sound enough and all the documents are in place, you might even be eligible for instant approvals.
The bike loan flexibilities mentioned above ensure that you can easily get hold of a dream Two-wheeler without having to worry about the price tag.