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Beware Of These Mistakes While Taking A Bike Loan

Two-wheelers are arguably the most popular mode of transport in India. Incidentally, in 2018, India displaced China to become the largest two-wheeler market in the world by recording a blockbuster sales of 22.4 million.

However, many in India who are planning to buy their dream bike or scooter may not be able to fully pay for it. Well, that where a two-wheeler loan comes to the rescue. A two-wheeler loan provides the perfect solution to fit in the extra cut to your budget, allowing you to get your desired two-wheeler. Two-wheeler loans come with attractive EMI offers to ease things up for you. The equated monthly instalments are calculated precisely so that it does not affect much of your regular monthly budget. The EMI set will be debited every month from the applicant’s account.

How to avoid making mistakes while taking a two-wheeler loan?

A lot of people who are applying for a two-wheeler loan are found to make a lot of mistakes. This might be because they are inexperienced and hence might not be aware of the multiple options available. Spending a bit of your time researching the options and the common mistakes that people usually make while applying for a two-wheeler loan will help you save some bucks. Coming up are some of the mundane mistakes that you can avoid while applying for a two-wheeler loan.

Not assessing the terms and conditions properly

Many people are found to rush to sign the papers without reading the terms and conditions properly. Look for information like grace period which is the extra time given to a borrower by the lender in case he or she is not able to pay the loan in time, without having to pay any penalty fees. Also, some lenders charge a penalty for early pay-off of bike loan. You may get a raise or have some extra source of income during the tenure and might want to use the surplus money to payoff the loan before the tenure ends to save yourself from paying some of the interest amount. Hence, It is recommended to go for the loan options with minimum to no early pay-off charges in their terms and conditions. Therefore, make sure that you go through the terms and conditions of the loan properly before agreeing to it.

Not scrutinizing enough options

Rate of bike loan interest and EMI options provided by a two-wheeler loan lender differs from one organisation to another. Hence, make sure you compare the bike loan interest rates and EMI choices of all the options available in the market. There are websites online that have comprehensive data comparing the rate of interest offered by some of the best and credible financial institutions. Refer to these portals and go through their terms and conditions to shortlist the one that best suits your needs.

Muthoot Capital Services Ltd, which is the part of 132 years old Muthoot Pappachan Group, is one of the preferred choices of most of the two-wheeler buyers in India. Not just the company is trusted but the approval process is quick and interest rates are lower. We would suggest you visit their website or call their toll-free number: 18001021616 to get all details.

Sanctioning redundant loan amount

All two-wheeler loans come with simple mathematics for their rate of interest which says, greater the loan amount you sanction greater is the interest that you have to pay. Hence, you must calculate the exact amount of loan that you require to get your desired two-wheeler. In case you have any surplus cash, subtract it from the on-road price of the two-wheeler and get the exact figure of the bike loan amount that you need. This will help you save some extra bucks on the interest.

Ignoring the approved loan amount

A lot of times people are found to look for two-wheeler options without taking into consideration the maximum approved loan amount of the lender. All the bike loan lenders have an upper bar set for the approved loan amount that can be sanctioned. It depends on the loan scheme, CIBIL score of the individual etc. There is no way an applicant can get a loan beyond that limit. Hence it is recommended to check the maximum approved loan amount first before looking for options in two-wheeler to know the cost of the two-wheeler that fits your budget.

Overlooking add-ons

Sellers of two-wheelers are found to have a lot of hidden add-ons which adds up to the on-road price of your selected two-wheeler. Enquire them about the add-ons that are included in the total price of the two-wheeler. Look for the add-ons that you do not require and remove it to bring down the cost of your desired two-wheeler. This, in turn, will help you lower the two-wheeler loan amount, saving you some bucks in the total price and the bike loan interest as well.

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