A Complete Guide To Choosing The Best Two Wheeler Loan
Two Wheeler loan is the option to buy a new bike, because there are many benefits of loan. Nowadays, most people prefer bike loans instead of single payment. There are many financial organizations that provide loans at the affordable interest rates.
At Bajaj Auto Finance, all you need to get your loan approved are a few essential documents and the loan will be at your disposal in a few hours. But before applying for the loan here a few things that you must understand.
Things to Consider:-
- Loan amount – This is the amount of money that you have taken as a loan. It can also be called the principal amount. The amount that will be approved depends on your application and how much you earn. The financial institute will estimate your repayment capacity and will let you know the amount of loan. In some cases, the Two Wheeler Loan can be used to finance the vehicle 100% without any down payment.
- Interest rate – This is the amount of interest that you are liable to pay on the principal amount. It is usually calculated in a compound manner.
- Equated Monthly Installment – This is the amount the borrower is supposed to pay every month towards the loan repayment. This usually has the interest calculated in it. Use a Bike Loan EMI Calculator to double-check the calculations.
- Loan tenure – This is the period you have to repay the loan without defecting. It can be anywhere from a few months to years. Usually, automotive loans have a shorter period as compared to that of a property.
- Repayment Capacity – The income you have at that point and your daily expenses will be crucial in determining whether you’ll be granted a loan. It also helps the bank in calculating an EMI that will be comfortable for you. It has a direct impact on the amount of loan that you will be eligible for.
- Processing Fees – It is a non-recurring charge levied by the financial institution to process your loan application.
Planning of the Loan:
Although many companies, including Bajaj, provide a very hassle-free experience, one must plan ahead and research the best deal that they can get on the vehicle itself when it comes to loans.
Here are a Few things to keep in Mind:
- The Purchase – You must decide in advance from where you are going to purchase the vehicle. It is best to buy the vehicle around festivals as there are great discounts and offers available.
- Loan amount eligibility – If you are earning Rs 20,000 a month, it would be better to go with a Bajaj bike than a sports bike. Your salary and credit score will determine the amount that is sanctioned to you.
- Eligibility Criteria – Different lenders have different criteria, but most of them have many similarities too. You should research it beforehand.
You must plan on how you’re going to repay the loan off and what all you need to cut back on. About 5% of the people who take this loan default and then begins the endless cycle of debt.
It is best that you
- Reach out to a customer care representative to understand the terms of repayment
- Use an online Bike EMI Calculator to tally the EMI offered by the lender. Always double-check the amount.
- Try to factor in variable costs like fuel and maintenance. Also, save enough for a breakdown as accidents can happen to anyone at any time.
- It is better to opt for a long time tenure as the EMI amount will reduce drastically.
Here is a list of documents that you need to get your loan approved:
- Proof of Residence (ration card, driving license, Voter ID, Passport, credit card bills, electricity bill)
- Income Proof (Salary slips for employees. Tax return forms for self-employed professionals)
- Proof of Identity
- Passport size photographs
With all these ready, one can quickly get the Two-wheeler loan that they want.
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