Owning a vehicle has become a necessity in today's world. Even if a car seems too costly, two-wheelers are always there. But, what do you do if you do not have enough liquid cash to purchase a two-wheeler? You get a loan. Getting a loan for buying two-wheelers has become so common that not only banks but many non-banking financial companies or NBFCs also offer two-wheeler loans. Even though getting a two-wheeler loan is easy, there are still certain points you should keep in mind. Here are the top five.
One of the first things to do while applying for a bike loan is to ensure that you can afford the EMIs. You have to consider all your loan EMIs and see that only less than half of your monthly income goes towards repaying your debts. If the two-wheeler loan EMI is pushing your debts to more than half your income, then you need to find a way to reduce it. You can do so by either increasing the tenure of the loan or try to lower the bike loan interest rate.
There is a lot of difference between two wheeler loan interest rates offered by different lenders. It is up to you to do your research and zero in on a lender that can offer you the lowest rate. If the tenure is short, then the interest may not make that much of a difference. But, if you are opting for a longer tenure, then you will definitely need to get the lowest possible bike loan interest rate. You may need to bargain a little with the lenders to get the best possible rate, but the savings will definitely be worth the effort.
A loan application needs to be accompanied by certain documents such as your identity proof, proof of employment, and your salary slip. All of these are intended to show the lender that you have the ability to repay the loan and to prove your credibility as an individual. Your loan application will have a list of documents that are needed and make sure to submit these without fail. A failure to do so can result in the application being rejected.
Once your loan has been approved, the final step is to sign the agreement. The agreement is legally binding and you need to read it carefully. The length of the agreement can put off some people from reading it. But there is a chance you may miss certain important details if you don't. For example, certain lenders deduct some interest, processing fees, and some insurance premium upfront from the loan amount that gets deposited in your account.
Be very careful when you are filling the loan application and make sure that you have entered all the details correctly. Once you have finished filling out the application double and triple check the details before submitting it. Loan applications have been rejected for reasons as small as a typo on the form. Why take the risk?
An instant bike loan is the best way to finance your bike. You just need to do a little online research and talk to a few lenders before zeroing in one that offers you the best deal. The process may take a little time. But, isn't it better to spend some time and get all the information so that you can make an informed decision? Even after you have decided on the lender, take your time while filling out the loan application. These five tips will ensure that your instant bike loan gets approved and you get your dream bike!