Do's And Don'ts While Applying For A Two Wheeler Loan In India

Applying for a bike loan is one of the best decisions one can take these days while buying a bike.

The reason is simple – the MSRPs of bikes in India have increased by many folds. Without the cushioning effect from a bike loan, one would need to empty out their savings while buying a bike. That would be an unwise financial decision.

There are countless lenders and numerous bike loan schemes available in India. So how can one choose the best lender from the rest?

That is easy when one abides by the do's and don'ts for two-wheeler loan stated in the sections below –

Applying for a bike loan is one of the best decisions one can take these days while buying a bike.

Do’s

• It is best to apply for a loan from a lender that offers flexible debt clearance options.
• It is best to apply for a loan from a lender that does not ask for hefty loan prepayment charges.
• Apply for a bike loan from a lender that can approve a loan within a single business day.
• It is best to take your time with the person assisting you with the bike loan. Lenders that are ready to clarify all your doubts pertaining to the bike loan are ideal. Make sure that you have cleared all your doubts about the bike loan you are about to avail. It is the only way to make sure that you will not be wasting your hard-earned money on substandard services.
• Always seek lenders who can offer you low interest rates on the bike loans they offer.

Don’ts

• Avoid applying for a bike loan when you do not have a high credit score or spotless credit history. If you do then you might end up getting your loan application rejected. Even if your loan application gets approved, you will end up paying high-interest rates and hefty EMIs.
• You can avoid 0 down payment loans. They might seem convenient but they are not. At the end of it all, you will have to bear high-interest rates and hefty EMIs.
• Avoid applying for a huge loan. Instead, apply for a loan that covers 20% of the bike’s MSRP. For example, if the bike costs a lakh, apply for a loan of INR 20,000. In this way, you will be able to enjoy low-interest rates and low EMIs.
• Avoid lenders who are not RBI-authorised. Always apply for a bike loan from lenders who are certified by RBI.
• Avoid applying for a bike loan from lenders who are new in the sector. It is best to apply for a bike loan that has been in business for a while.
• Avoid applying for a bike loan from lenders who do not have a stellar online and offline reputation. It is best to apply for a bike loan from a lender that is respected and loved by its customers. You can also get in touch with the past and present clients of the lender. In this way, you will be able to learn about the quality of services offered by the lender.
• Avoid lenders who are not transparent about their terms and conditions.
• Avoid lenders who charge hefty processing fees.
• Avoid lenders who do not have an EMI calculator tool on their official website.
• Avoid lenders who do not have any options for online loan applications.
• Avoid lenders who do not offer the convenience of uploading loan-related documents over the internet.
• Avoid rushing the process. When you apply for a two-wheeler loan in a rush, you might overlook the terms of the loan scheme. You need to take your time and ensure that the loan terms meet your unique requirements.

Conclusion

Applying for a bike loan has many benefits but only when you make informed decisions. Follow the tips mentioned above with due diligence for the best results.