Traffic is a concern in every city. Many people are opting for a two-wheeler to commute to their offices. It saves time and money spent on fuel regularly. The growing demand for two-wheelers has resulted in an increment in two-wheeler loan applications in India. The competition has made it possible for people to get the bike loan quickly, and allowed you to have more options to choose.
You can compare loans provided by various banks and NBFCs. It will allow you to grab the best deal available to you. You must read the fine print before choosing a loan, as it will affect your monthly expenses. As you select a loan, make sure it does not impact your monthly budget. You can get an idea of your liabilities by using a two-wheeler loan interest rate calculator online. We have prepared a list of things that you need to check while comparing 2 wheeler loan.
1. Loan amount limit:
Different banks and NBFCs have set their lower and higher ceilings for a two-wheeler loan. So, make sure that the lender you choose will cover your credit requirements. If the lender you choose can provide the amount, then you can compare the other factors. No matter how sweet a deal you believe your lender is giving, it may become a burden on your financial health if they are not covering your requirement.
2. Loan Tenure:
The time for which you will have to make repayments through EMIs is the loan tenure. You can plan the loan term to ensure it does not affect your finances due to the loan. By making the tenure longer, your EMIs will go down, but you will be required to pay for a longer duration. Further, there is a specific range of tenure for which banks and NBFCs provide loans. Make sure your lender will give you the required time to make repayments.
3. Additional charges:
Before applying for a loan, ensure to check all types of costs included in the loan. Apart from the nominal processing fee, banks often use late payment charges, bouncing fees, etc. It will help you calculate the costs that you will be required to cover. Take your time to understand all your liabilities, as it will affect your budget.
4. Down payment:
Some lenders will provide 100% finance for your two-wheeler, while some will have a limit of 80-90% on the vehicle’s cost. It can depend on the secured or unsecured nature of loan too. You will be required to make the down payment of the amount not covered by the loan. So, ensure you have enough cash to make the down payment at the time of purchase.
5. Interest rates:
One crucial factor to consider is the two-wheeler loan interest rate. It can affect the EMIs that you are required to pay. Banks and NBFCs offer two options for the interest rate on a bike loan. One is fixed interest rates, and the other is variable interest rates. By opting for a fixed interest rate, the EMIs will remain constant throughout the loan tenure. On the other hand, the variable or floating interest rates fluctuates with the market index.
6. Required documents:
Every lender requires you to submit all necessary documents to consider your two-wheeler loan application. Lenders use them to examine your identity and eligibility for the loan. Usually, the lender will ask you to submit the Aadhar Card, DL card, PAN card, and some passport-sized photographs. Along with them, you have to provide income proof. You can check the document list required for a loan online on the lender’s website.
7. Prepayment charges:
By making prepayments, you can avoid paying the interest when you have extra cash in hand. If you get additional income or save additional money from your planned budget, you can make the payments using this cash. You can choose to prepay all the amount or make an extra repayment along with the two wheeler loan emi calculator. So, make sure that your lender accepts prepayments, and check if they charge additionally for that or not.
Getting a two-wheeler loan can help you reduce the liabilities on your monthly finances. But to make sure you get the best deal, you need to compare the options available in the market. Make sure to examine the two-wheeler loan interest rate before applying with the lender.