Indians prefer to own a bike over a car as the former is cheaper than the latter. Furthermore, bikes consume less fuel than a car. On top of this, the maintenance costs of a bike are lower than a car.
However, the prices of motorcycles available in India are increasing frequently. Hence, it has become impossible to purchase a motorcycle without a two-wheeler loan, so these days Two Wheeler loan is the best option to buy a bike.
Why not buy a bike with cash?
Well, financing a motorcycle from a reputed lender entails many benefits. Some of the most appealing benefits of a bike loan are as follows
- A bike loan would entail EMIs. EMIs are small payments made by a borrower to a lender. These small payments clear the debt of a borrower and that too within the set tenure. There is also a hidden benefit of paying EMIs. With each EMI, the credit score and the credit history of the borrower get a boost. A high credit score and a spotless credit score would allow a borrower to borrow more money easily in the future.
- By applying for a motorcycle loan, one would not need to scramble in a bid to get their hands on a bunch of cash. On top of this, the common person doesn’t have 2 – 3 lakhs cash lying around in their home! The person would either have to break out their FD or empty their savings! Both decisions are financial suicide, according to professional financial advisors.
- Motorcycle loans available these days from traditional as well as non-traditional lenders come pre-approved. If that is not the case with one’s preferred lender then one needn’t worry. Most lenders have the resources to approve a loan application within a business day. So, one will be riding their dream bike home in no time!
How to get a bike loan?
As already mentioned, motorcycle loan applications in India are approved within a business day. But there could be instances when the loan application gets rejected. Or the lender starts taking a lot of time to approve the application. To keep these issues at bay, one must follow the tips mentioned below –
The first step is to use an EMI calculator
One must use a Two wheeler loan EMI calculator before they even visit the office of their preferred lender.
An EMI calculator is an online tool found on the official websites of lenders and bike portals. The tool allows a person to learn about the tentative EMIs a bike loan would entail. Learning the tentative EMIs for a bike loan would allow one to financially prepare for the debt. Financially preparing for a bike loan would ensure that the borrower never fails to pay the EMI on time.
The next reason to use an EMI calculator is to learn about the perfect principal + tenure combination. The perfect principal amount and tenure would ensure that the loan would entail a low-interest rate and manageable EMIs.
Borrowers should provide accurate details while applying for a bike loan
The whole process of buying a new bike is pretty exciting. But one shouldn’t let all that excitement go into their head. If that happens then one might end up providing their lender with the wrong details. Providing wrong details to the lender might get marked by the officials as a deliberate act. One should know that deliberately providing financial institutions with wrong details can land one in trouble.
Either way, providing incorrect details to lenders would lead to unnecessary delays. The chances of the loan application getting rejected also increase by many folds. The best step forward is to remain calm and composed while filling up a loan application form.
One must apply for a loan only when their credit score is high
Borrowers should always apply for a bike loan when their CIBIL score is more than 750. In this way, the borrower will be able to enjoy low-interest rates and affordable EMIs. Furthermore, the lender would also process the loan application form quickly.