How to Choose Two Wheeler Loan Tenure Wisely - 5 Easy Tips

Are you thinking of getting a two-wheeler on loan? Do you wonder how you can choose the loan tenure? Fret not, for you are in the right place.

The affordability and ease to zoom through the traffic makes two-wheelers a top choice among Indians. For some, it may be easy to go for a four-wheeler counterpart, but for the ones that cannot spare their savings just for transport can even get this fast mode of transportation on simple loans.

Getting a two-wheeler loan isn't that difficult of a chore nowadays. One can effortlessly benefit from a motorbike loan that can be provided for by even your bike dealer and as easy as clicking a few buttons. In case you agree to apply for a two-wheeler loan, there are a lot of essential factors that need to be confirmed beforehand.

To get the most out of your loan application, it is necessary that all the elements like bike loan interest rate, tenure, EMIs, etc. are thought about in advance. One of the most crucial of them will be the rate of interest being charged for the repayment of the loan along with the amount on loan itself. Even the tenure and period for which the loan has been taken becomes a very vital factor that might end up affecting your repayment budget and amount.

How to Decide the Tenure for a Two Wheeler Loan?

The tenure or the time period for which the loan has been taken is a factor that is directly related to the rate, and per cent of EMI charged for the loan secured.

Therefore before applying for the loan, you need to figure out what kind of tenure you are looking for that would make your payments easy and hassle-free. The choice of your tenure for the loan's repayment may turn out to be a result of several elements. Every two-wheeler loan has a distinct range and set of tenure along with it.

• Longer Tenure: If you choose for the full loan term/tenure, then the resulting EMI amount is lessened, but the number of these repayment transactions increases. This also leads to a higher rate of interest.
• Shorter Tenure: If your choice is of a shorter period and tenure, the amount for repayment for EMIs will be on an elevated rate, but the number of these transactions shall be reduced. These transactions may even lead to a relatively decreased rate of interest altogether.
• Choice of EMIs: The best and most economical way to understand your most convenient payment system is to budget it in monthly repayments. To get what a particular assessment of the monthly EMIs has to be, one may employ the usage of a two wheeler loan EMI calculator.
• Recalculation of EMIs: One can begin with a long term or extended tenure in the beginning and calculate the approximate EMI to be paid and then have the option to reduce it and then again recalculate it.
• Repayment of EMIs: All of these terms and factors have to be taken into severe deliberation before one reaches any distinct decision about the settlement of the loan and its tenure for the repayment of your two wheeler loan. The advised maximum extended tenure that can be applied for is two years, which is considered ideal. It helps the debtor to be free of their obligations to loan as fast as possible.

Additional Read: How To Choose the Best Two Wheeler Loan

After all the calculations and elements are considered, the term and tenure for two-wheeler must be according to requirements and economic well being. It should all be according to what you can afford rather than just being done with it. In case that ends up being more than what you can afford as a repayment plan, the consequence might end up with you paying a higher interest rate. It will end up being a rather annoying situation rather than being the convenience it was started as.