India is the largest two-wheeler market in the world. The increased demand from rural, semi urban and urban areas and low cost of ownership are some of the factors that have propelled this growth. And rightly so, because with a two-wheeler you can easily navigate the crowded Indian roads to commute to work or college, go to the markets to run errands or just give in to wanderlust and go on a long drive with friends.
With the increased demand for two-wheelers especially amongst the middle-class youth, the demand for two-wheeler loan is also bound to increase, and why not, since you no longer have to cough up all your savings to buy a bike. You can easily get one at low interest rates and pay it off in easy installments. Recognizing this fact, several financial institutions have come forward with attractive loan options like quick disbursal, online processing of application, quick approval, etc.
However, with so many companies offering bike loans, the choices can get overwhelming. With a little diligence and research, you can land a really good deal on a two-wheeler loan. Here are a few things you should know before applying for a loan.
Plan your Purchase – It is not like you buy a bike every year, so take your time and plan things out. Find out the prices of bikes, features you like and decide on the one you would buy. Also think through the finances. Would you require a loan to finance your purchase? If yes, how about the monthly EMI etc.? Once you have sorted everything, plan your purchase around festivals like Diwali or at the end of the year. You are likely to attract discounts not just on the price of the bike but also attractive offers on loan schemes like low interest rates, zero processing fee, free insurance etc.
Know your Loan Eligibility – If you are going to take a loan, it is important to check your credit score, your loan eligibility, etc. beforehand. Once you know the loan amount you are eligible for, you can accordingly choose the bike that best suits your budget and also fits your needs. This would avoid hassles later and you can have a smooth purchase.
Create a Repayment Plan – This one is important as you do not want to miss your EMI and default on your loan. Know how much EMI you will pay each month throughout your loan tenure, so that you can plan your monthly finance accordingly. Use the online EMI calculator to calculate the exact amount of EMI you would have to pay each month. This way you can even increase or decrease the tenure so as to arrive at a comfortable amount that you can pay every month. Also, when you plan your repayment, it is important to factor in the fuel charges, maintenance etc.
Keep Your Documents Ready- Even the documentation requirement differs from one lender to another. It is important to have at least the basic documents like your ID/Address Proof, Income Proof etc. ready.
These days lenders have simplified the loan application process. One has to simply go on the website, fill in the form, upload documents and that is it. Once you do that, just sit back and wait for the approval. So you see! Now, you no longer have to put your plans of owning a two-wheeler on hold due to lack of funds.