If you are seeking to switch to a mode of transportation that is more convenient than public transport and comes off affordable too, two-wheelers are the ones to go for. As many of these vehicle models carry a decent price tag, purchasing a suitable bike that supports everyday run should come easy on your pockets. The presence of bike loans only makes purchasing your choice of two-wheeler model further affordable and convenient. With several two wheeler finance companies in India extending funding as bike loans, it becomes important to make a detailed comparison to find the best provider.
You can compare different lending institutions based on a range of features that serve as suitable parameters of measurement. Below given are some essential factors that you must look out for to find the best lender for your bike loan.
Affordable Rate of Interest and Other Charges
You must consider the applicable rate of interest on your bike loan as it can determine the overall affordability of your advance. Several two wheeler finance companies in India provide bike loans at competitive rates, which is further prompted by the fact that these are secured advances. When deciding on the lender, it is crucial to compare loan offers from different financial institutions available in the market. Once the lender is selected, you can also negotiate for the better rates by leveraging your financing standing, repayment capacity, and credit history, if all of them hold good.
It is also wise to consider other rates and charges applicable to your bike loan as they can contribute significantly to the cost of your loan in the long run. Some best lenders in the market levy these charges at nominal rates, ensuring affordability.
The Amount of Financing Needed
The need for financing to purchase a bike can differ from person to person depending on the model selected as well as the amount of down payment one agrees to make. Bikes of varying makes and model can significantly differ in their prices, and one must take care to choose a bike model whose price is well within his/her affordability.
The down payment one is ready to make also impacts the total financing he/she would need to complete the purchase. In this context, one must also consider the lender’s LTV or Loan to Value ratio, which is the maximum financing value available expressed as a percentage of the bike current market value. With the best lenders, LTV can go up to 95%. Some lending institutions also provide 100% bike financing to eligible candidates for the purpose of purchase convenience.
You must match the total financing need with how much of maximum funding the lender can provide to match your requirements with that of lender offer. Reputed loan providers extend funding for bike purchase amounting up to Rs.5 Lakh with ease.
Eligibility Criteria and Fulfilment
You must also check the eligibility criteria that financial institutions require borrowers to meet. It is ideal to go for a lender who sets minimal eligibility requirements, which makes it easier for aspiring borrowers to meet them. These can span across age, income, occupation, credit score, and such other factors. You must also see if you fulfil all of these as it improves the chances of quick and convenient loan approval.
Repayment Tenure
Choice of repayment tenure can be crucial to the overall affordability of the advance as it contributes to the EMI determination. A longer tenure would result in shorter EMIs but higher interests and vice versa. Use an EMI calculator for bike loan to make a thoughtful tenure selection and borrow wisely.
Two wheeler finance companies in India also provide funding under special offers that you can look out for when finding the best lender to borrow from. Create a suitable funding outgo and align finances before applying so your application is presented with a confidence of repayment plan for convenient approval.
