Owning a two-wheeler entails several benefits. It is convenient to navigate through packed urban roads or narrow rural lanes on a two-wheeler. Motorcycles are also extremely popular among smaller families and individual owners.
Purchasing a two-wheeler is a huge financial decision. Therefore, you must consider certain factors before making your decision. Choosing a motorcycle that is affordable and that provides good mileage and performance is important.
Although the price of a two-wheeler is lower than that of a four-wheeler, purchasing one may burn a hole in your pocket. It is possible that you may not have the entire amount to purchase the bike. Fortunately, a two-wheeler loan will make it easier for you to own your dream bike. However, there are some factors that you must consider before applying for the loan.
Here are four loan-related aspectsyou must consider in order to make the right decision.
- Eligibility criteria
If you are salaried and 18 years old, you may apply for such a loan. Furthermore, you need to be working in your current job for at least six months. If you are self-employed, you must be at least 21 years old. Moreover, you must have been in business for at least two years. These criteria are primarily to ensure that you are capable of servicing the loan without missing the Equated Monthly Installments (EMIs).
- Documents required
Compared to other facilities like home loans, the documents required while applying for a bike loan are minimal. You need to provide the latest photograph, address and photo identity proof along with the application form. In addition, you may need to show an income proof and the bank account existence proof. Once you submit these basic documents, the approval procedure is completed within a short period of time.
- Loan amount
Generally, lenders do not fund the entire price of the motorcycle. However, most financial institutions offer up to 95% of the on-road price. This means you need to pay only a small amount towards the down payment for your bike. However, you must remember that the loan amount will depend on certain factors, such as your income and age.
- Loan tenure
Servicing a motorcycle loan is not as expensive as servicing other loans like a housing loan. This is because the bike loan interest ratesare affordable. Furthermore, repayment is not difficult since lenders provide such loans for up to five years. You may opt for shorter loan duration; however, you must ensure that you will be able to pay the EMI without facing any financial difficulties.
A common misconception is that only banks provide such loans. However, non-banking financial companies (NBFCs) also offer such facilities. Generally, NBFCs offer greater flexibility and competitive two-wheeler loan interest rates. In addition, these institutions offer quick and simple loan application and approval procedure.
Historically, you needed to visit the nearest branch of the lender to apply for the loan. However, with the advent of the Internet, you may conveniently apply for such loans online, from the comfort of your home. This may be easily completed on the lender’s website. Applying online has several benefits. You are able to save time and reduce the efforts required to apply for a motorcycle loan. Furthermore, you may be able to benefit from online offers like special discounts.
If you do not have the entire amount required to make the purchase of your bike, do not fret. Apply for a loan today and purchase your bike on EMI, thereby keeping all your financial difficulties at bay.