With metropolitan cities getting crowded every day and the need to maintain social distancing due to the unprecedented pandemic, a two-wheeler seems to be the only available option available to navigate through traffic and also protect yourself and your loved ones from the deadly coronavirus.
If you are short of cash and wish to buy a bike, you can opt for the best two-wheeler loan and manage your finances without dipping into your savings or investments. The great thing about a two-wheeler loan is that you can get up to 100% of the bike’s on-road price as a loan, and the two-wheeler loan interest rates are most affordable. You will have to ensure that you meet the bare minimum eligibility criteria and have the requisite documents.
The stages involved to avail of the best two-wheeler loan:
Choosing the perfect two-wheeler
There are several two-wheelers available in the market, and you will have a dilemma of choosing the perfect two-wheeler before availing yourself of a loan. Do you need a sporty bike, a scooter, or a moped? You will need to factor in the type of vehicle to choose and the cost involved. It is wise to select a cost-effective two-wheeler for your everyday commute.
Choosing the best lender
Each lender has different offers and requirements, and that’s why you need to compare multiple lenders in terms of the loan amount, the interest rates offered, and the loan repayment tenure. Make a list of the most suitable lenders and short a lender that offers a higher loan amount, 2 wheeler loan interest rate, and flexible repayment tenure. It allows you to manage your finances and make on-time repayments of the loan amount with interest.
Check your credit score
Your CIBIL score is one of the crucial factors influencing your two-wheeler loan application. It indicates your creditworthiness and your payment capacity. Through your credit score, your lender can identify whether to approve your application or not. Make sure that you have maintained at least a 750 CIBIL score. Any score below that range is considered harmful and may lead to rejection of your loan application.
Before applying for the best two-wheeler loan, check your credit score on the CIBIL web portal or your lender’s website. Knowing your credit score enables you to negotiate about two-wheeler interest rates with your lender.
Meet the lender’s eligibility criteria
After finding your lender and knowing your credit score, it is crucial to understand your lender’s eligibility criteria. Each lender has different requirements, and some of the most common criteria in all two-wheeler loans are:
- You must be an employee of a private or public company, or you must own a business.
- Your age at the time of application must be at least 18 years and 65 years at the end of the loan tenure.
- If you are a salaried individual, you must show a minimum net income as per the lender’s policy and a sure net profit in the case of a self-employed person.
Determine your equated monthly instalments (EMIs)
The most crucial part of a two-wheeler loan knows exactly how much you can afford to pay as EMIs. Therefore, you will need to assess your needs and determine your affordability using your lender’s online two-wheeler loan calculator.
A two-wheeler loan calculator is a financial tool available for free on your lender’s website. You will need to add the preferred loan amount, the interest rate, and the loan tenure to calculate an EMI based on your needs. The best part is that you can alter them as many times as you need until you reach an affordable EMI.
Carefully read all terms and conditions
Before signing your loan agreement, it would be wise to carefully read all the terms and conditions on your loan application. Check the repayment option you have been offered and determine the EMI you wish to pay. Cross-check your interest rate and the loan amount you will receive. There are also hidden fees; make sure you know and agree with all the terms and conditions before you sign on the dotted line.
Know the loan process
The process of acquiring two-wheeler finance is simple, effortless, and transparent. However, you should only apply for a two-wheeler loan after you have deliberated on the loan amount you need. Prepare all the document requirements and ensure that you have a healthy credit score to get the best deal available.
In the end
To get the best two-wheeler loan, you will need to choose your vehicle, compare lenders, maintain a good credit score, determine the eligibility criteria and calculate an affordable EMI to make the best use two-wheeler loan.