Do you want to acquire your dream bike but are unsure about how to arrange for funds? Keep your worries aside. With two-wheeler loans, you can raise funds to realise your dream of owning a bike.
Here are 5 factors to think about prior to applying for a two-wheeler loan to assure you get the finest deal feasible.
Conduct investigation
Different monetary institutions have diverse loan terms and situations. Also, the interest price, maximum loan quantity, and loan to worth (LTV) ratio differs from one monetary institution to a further. While applying for a loan, be ready to spend for several charges attached with two-wheeler finance such as processing costs.
Check for the hidden clauses with diverse lenders as they can influence your loan application kind. With excellent investigation, you could even obtain a monetary institution that charges minimum or no costs for processing of a loan or component prepayment of a loan.
Loan quantity
Many monetary institutions offer you loans to worth on a bike for a maximum of 90% to 95%. The LTV ratio depends upon aspects such as the kind of two-wheeler and the applicant’s profile.
Compare the LTV ratio and loan quantity supplied by diverse lenders. You do not want to be in a scenario exactly where your selected bike’s worth is Rs 1,00,000 and the lender gives a maximum quantity of Rs 20,000. So, pick one that disburses a loan quantity that is suitable for your requirements. When choosing a monetary institution, the loan quantity ought to in no way be more than-leveraged. You could obtain your self in a situation exactly where the eligible loan quantity is higher than your requirements. In such situations, the lender could urge you to obtain a more costly bike by opting for a larger loan quantity. Going above your price range, on the other hand, can hurt you financially in the extended term. You could obtain it tough to spend off your month-to-month EMI resulting in a dent in your credit history.
Affordable interest price
Financial institutions establish the loan eligibility and two-wheeler loan interest price based on aspects such as the applicant’s earnings, age, employment status and credit history. You do not normally need a robust credit history for your two-wheeler loan approval but robust creditworthiness will assistance you in availing of two-wheeler finance at an very affordable interest price.
Also evaluate the Annual Percentage Rate (APR) with diverse monetary institutions as it involves the fees and expenditures involved in receiving two-wheeler finance. Therefore, it is advisable to opt for a monetary institution that gives a two-wheeler loan at an very affordable price of interest.
Special gives
Most monetary institutions launch desirable loan gives in the course of the festive season. Some even provide seasonal gives such as a monsoon sale. These gives could include things like a reduce price of interest, zero down payment, one hundred% financing, zero processing costs, and such. Furthermore, if you are an current consumer, there are excellent possibilities that it could offer you you improved loan interest prices as compared to new consumers. If you avail of a two-wheeler loan in the course of a particular offer you period, you could save a massive quantity of revenue on your EMI all through the loan repayment tenure.
Repayment alternatives
Check the repayment alternatives readily available with diverse lenders. Longer the tenure, the larger will be the interest element. Choosing a program with versatile loan EMIs will let you to repay the loan swiftly though guaranteeing that you in no way miss an EMI payment.
Source: Tax Guru