A lot of people dream of buying a motorcycle. For some, it can be a fascination while for some it is an essential utility. Numerous people in India own two-wheelers and the market is a booming one right now. A lot of people think of buying motorcycles simply for commuting purposes while others simply need it because they love riding.
Also, read about Can anyone buy a Ferrari?
No matter which motorcycle you want to buy or what your purpose is, owning a vehicle of your own brings in a sense of satisfaction and is a liberating experience as well. That being said, a lot of people may think that they cannot buy their dream bikes or scooters simply because they do not have the required sum of money right now! Although, that might be a wrong concept. Buying a two-wheeler without having the full money needed for the purchase is possible.
Bike loans are one of the most popular ways to buy a bike in India and one can get a two-wheeler loan to buy a bike without needing to have the full amount of purchase with them. As fascinating as that may sound, there are a few things to know about these loans and a few factors to consider before you buy a bike with the help of two-wheeler financing.
For instance, the two-wheeler loan interest rate is an important factor of consideration and will make sure that you pay the least interest charges by choosing a lender that charges low-interest rates. In this article, we have talked about everything you need to know and consider before getting a two-wheeler loan.
Planning Your Two-Wheeler Loan
Two-wheeler loans are very easily available throughout India and a lot of banks and finance companies offer two-wheeler loans. While you can get such loans pretty easily, you will need to plan the entire process before you finally get a loan to buy a bike. Let us take a look at all the things you must know about and consider to perfectly plan your two-wheeler loan.
Loan Eligibility
The most important and basic factor is knowing about the eligibility of such a loan. While the eligibility criteria vary on the lender, the basic factors include:
- Age of a minimum of 21 years and a maximum of 60 years during the time of the end of tenure for salaried professionals.
- For self-employed individuals, the age is 21 years to a maximum of 65 years when the tenure ends.
- The minimum income criteria for salaried professionals vary on lenders.
- Must be residing in the city for one year with proper residence proof.
- A good credit history.
Repayment capabilities and plan
How much money you take as a two-wheeler loan and how long you will take to pay it back are important factors to consider. Check the EMI amount you will have to pay every month and then decide if it matches your financial capabilities. You will have to make a plan based on your income and your other financial expenses and liabilities.
Details of the loan
There are a few important things about bike loans that you must look into before applying for one from a certain lender.
- Two-wheeler loan interest rate: The interest charges on the principal amount must be low. A person’s income, credit score, as well as the amount of the loan, and the loan tenure, have an impact on the interest rate.
- Repayment tenure: While this generally ranges anywhere between 2-5 years, you must make sure that the repayment tenure matches your repayment capabilities.
- Processing fees: The lender must not be charging exorbitant processing fees on the loan.
Final Words
From your repayment capabilities to two-wheeler loan interest rates, everything mentioned above will help you make the best choice and get your dream bike without any hassles.
