6 Common Myths About The Two Wheeler Loan That You Should Avoid

Have you got your eyes on the latest bike model? Are you worried about how to finance its purchase? You might think about digging into your savings. However, that’s not a good idea. You can take a bike loan instead.

Taking a loan has become easier than ever. Numerous lenders are willing to give you a two-wheeler loan. However, you might be aware of myths about the bike loan. This article will aim to burst all these myths to show you the reality.

Common Myths About Two-Wheeler Loan


1. There’s Too Much Paperwork Involved


The thought of paperwork scares us all. You might be tense and worried. What if you miss something important? What if you end up losing your vital documents?

Well, they are things of the past. You don’t need to take out those piles of papers from your cupboard anymore. Most lenders have introduced an online KYC system. Thus, they can easily access all the necessary documents online. So, you need not be afraid of paperwork anymore.

2. Getting a Loan Takes a Lot of Time


You just can’t wait to get your hands on that dream bike. But you are disgusted that the loan will take several days to get processed. Well, you might be wrong there.

These days, lenders don’t even take a couple of days to process your loan. They compete to grant loans to their customers. As a result, you can reap the benefits. Your loan will get processed instantly if you fulfil all the criteria and have the required documents.

3. The Interest Rates Are Too High To Afford


It is a concern all borrowers have. You might lose your sleep thinking about the high interest rates that would make it hard for you to pay the EMIs.

Your interest rate depends on your profile. Your lender will consider factors like your credit score and income before deciding on the rate of interest. However, you can compare different lenders and get a suitable rate for you. Moreover, you can also reduce your EMI amount by opting for a loan of longer tenure.

4. Lower Interest Rates Make The Loan Affordable


Yes, interest rates do matter. It impacts the EMI amount you have to pay. However, they are not the only thing to consider.

Your lender might ask for several additional charges. It includes the processing fees, etc. These charges also add up to the cost of your loan. So, make sure you consider them before applying for a bike loan.

5. High Credit Scores Will Guarantee Loan Approval


You might think that having a good credit score will surely get you a loan. However, that is a myth.

Your lender checks your credit score while processing your application. However, that's one of the things they check. Apart from your CIBIL score, the lending institution will also consider your income and revenue. That will give them a better idea about your repayment capacity.

So, don’t depend only on your credit history to get a loan.

6. Your Profile Is Not Suitable For A Loan


It is one of the biggest myths you can hear while taking a bike loan. You might not have a credit history. But that doesn’t matter. Several lenders in the market are ready to finance the purchase of your bike if you can pay the EMI’s.

Final Word


Myths are meant to burst like bubbles. Now that you are aware of the reality of a two-wheeler loan, nothing can stop you from buying your dream bike.

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