Do you wish to buy your dream bike? Have you already chosen the model? Well, the next step would be to arrange the money.
It is not a good idea to dig into your savings to buy a bike. So, what can you do? A bike loan can help you out. But there are some factors to consider taking a two wheeler loan. Let’s take a look at them.
The eligibility criteria vary according to the lender. So, you should check the criteria from their website before applying for a loan. Make sure you fulfil all the criteria. That will help you get the loan faster.
Bureaus like CIBIL formulate your credit score based on your credit history. Your score will depend on how you repay your loans.
If you repay your previous loans on time, that will boost your credit score. And, having a high score will help you get a lower interest rate. It will also give you greater bargaining power with your lender.
Your lender will ask for your documents to verify the information you provided.
You will need to submit your identity proof and address proof. Moreover, you will have to provide them with all your income-related documents. That will include your salary slips, tax returns, and bank statements. Keeping all your documents ready beforehand will save a lot of time. Thus, you will not have to wait for weeks to get your loan processed.
Do not settle for the first lender you come across. Do your research. Compare the rates offered by different lenders.
The interest rates range from 9.5% to 17%. If you compare the rates, you will be able to get the lowest rates. As a result, your loan will become more affordable.
Well, interest is not the only charge you need to pay. Your lender will also take processing fees from you. It will vary according to the lender. However, the processing fees can go up to 3% of the total loan amount.
Make sure you go for a lender that charges the lowest processing fees. That will reduce the financial burden on you.
Keep a watch on your lender’s website and social media accounts for seasonal offers and discounts. Lending institutions often give rebates on the interest rate during festivals. If you keep track of these offers, you will be able to grab them.
A bike EMI calculator will help you calculate your EMI amount. If you know your EMI amount in advance, you can manage your finances efficiently. It will help you regulate your future expenses accordingly.
Moreover, you can calculate the EMI for different tenures and loan amounts. Thus, you will be able to choose the best bike loan for yourself. You will get an EMI calculator on the website of any lending institution.
Getting a two-wheeler loan will take you closer to your dream bike. However, you should not hurry and make an impulsive decision. Considering these factors before applying for the loan will ensure you get the best loan.
Bajaj Auto Finance offers bike loans at competitive rates. Moreover, they take minimum time for approval. So, go and bring home your favourite bike without further delay.
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