Want to Apply for a Loan to Buy Your Favourite Bike? Here is What You Need to Know
In countries like India, commuting to the office in a crowded public transport could be time-consuming and a frustrating affair. A car or a two-wheeler can bring a sigh of relief and reduce your traveling time.
Gone are the days when you need to shell out a huge amount of money to buy a vehicle of your choice. It has now become simple to buy a vehicle with banks and private lenders providing auto loans with varied interest rates depending on your need. CreditMantri has put together all the information you need to know while applying for a two-wheeler loan.
Things to Know Before Availing a Two-Wheeler Loan
Availing a loan to buy a two-wheeler is much easier than a car loan. As there is a huge demand for bikes, the two-wheeler is competitive and hence the consumer has the upper hand when it comes to financing. It only takes 2 to 3 business days for approval.
Eligibility Criteria: You must be over 21 and below 60 years of age to avail a two-wheeler loan. Besides, your financial capability is checked through your bank statements, and for salaried employees, remaining in the same job and residence for 1 year is an important criterion to be eligible for a bike loan.
Documentation: The documents required are ID proof, Age proof, Address Proof, last three months' salary slip for salaried employees and bank statement.
Down Payment: The banks do not lend you the entire amount as loan. Minimum down payment differs from lender to lender depending on the value of the vehicle. Generally, the minimum down payment will be 10% of the principle amount.
Loan Tenure: You can select a repayment tenure of 12 to 36 months based on your monthly income. Making a high amount of down payment is recommended as the repayment tenure and rate of interest will be less.
How to Apply for a Two-Wheeler Loan? You can either apply online or offline for a bike loan. Online method is hassle-free and you can also calculate your EMI amount, a rate of interest and tenure. For the offline method, you need to approach the lender and go through several formalities.
Bike Loan, Is It Good for Me?
Instead of paying up your entire savings and being worried about your finances, a bike loan will be a convenient option where with less interest and EMI, you won't feel the burden in the long run. While cars are depreciating assets, bikes have a good resale value, and you can update your vehicle according to your wish.
A two-wheeler offers you the best form of personal transport to commute to your workplace and getaway with your friends on a weekend. Hence go for a two-wheeler loan if you were planning to buy a bike for a long time.
Always remember that any kind of loan comes with terms of repayment and a tenure and your credit activities will be recorded in the credit profile. Acts such as delays in payments, paying minimum balance could affect your credit profile and your future creditworthiness. Take care of your credit health!