Two-wheelers are the best choice to navigate through daily traffic or take long-distance trips that safe and comfortable. Not everyone can afford a two-wheeler due to the economic crisis caused by the COVID-19 pandemic.
However, owning a two-wheeler has become simple and easy with two-wheeler finance that offers the best available bike loan interest rate. The main reasons and advantages of getting a bike loan are:
- The process of acquiring a bike loan requires minimum documentation. You don’t have to visit a bank or NBFC as you can apply for a bike loan online.
- Choose a loan tenure that best serves your needs from the available range from 12 to 48 months.
- You can avail of a competitive bike loan interest rate.
- There is flexibility in the mode of repayment given the availability of multiple payment options.
Tips to remember before applying for two-wheeler finance
Research and obtain an optimal interest rate
Each NBFC charges different bike loan interest rates so, thoroughly evaluate interest rates charged by lenders. The best part is that you can get to know your interest rate online.
You can also use two-wheeler bike loan EMI calculators that determine the monthly payable amount. You will have to add details such as the required loan amount, a preferred tenure, and the interest rate, the bike loan EMI calculator will show an exact EMI payable.
Be mind of additional charges by the bank
Besides a bike loan interest rate, there is a processing fee that needs to be paid upfront. The processing fee varies from lender to lender, but it can be around 3% of the total loan amount. So, find seasons and lenders that waive off processing fees and prepayment fees.
Evaluate your credit score
A great credit score determines your payment capacity. Lenders prefer borrowers who have high CIBIL credit scores. The benefit of having a high credit score is that you can get your loan disbursed easily and also, you can get a reduced interest rate. So, always evaluate your credit score by applying for two-wheeler finance.
You must ensure to meet the eligibility criteria before applying for two-wheeler finance. As a borrower, you must meet the following requirements:
- The applicant must be an Indian citizen.
- Should be 18 years (at the time of application) and 65 years or less (at the end of loan tenure)
- Should be a salaried or a self-employed person.
- Salaried person: A minimum of Rs. 96000 per annum as income.
- Self-employed person: A minimum of Rs. 120, 000 per annum as net profit.
Keep all the documents ready
It is crucial to know the documents needed and get them ready before applying for two-wheeler finance. Although the documentation varies from lender to lender, the common documents required include identity proof, address proof, income proof, and photography.
Make a solid repayment plan
You need to know how much you can pay monthly and for how long. Make a solid repayment plan before applying for a bike loan. One way you can do this is by using a Muthoot Capital two-wheeler loan EMI calculator. You can determine exactly how much you should pay monthly along with the interest rate.
Before rushing to apply for a two-wheeler loan, read the above tips to get well-informed and avail of a bike loan interest rate that works for you. The great thing about two-wheeler finance is that it is simple and easy. So, apply for two-wheeler finance and own your dream bike.