5 Things to Keep in Mind When Taking a Bike Loan

Featured Image Caption: Two Wheeler Loan

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Now that you have downloaded the bike emi calculator of your choice it is evident that you wish to purchase your next or new two-wheeler at the earliest. In all probability, you are feeling a strong sense of excitement as you are about to bid adieu to Ola/ Uber bookings or joining long queues at the metro or bus stops. Here’s what you need to know before you take a bike loan to enjoy an entire range of conveniences.

Important Things to Know Before Getting a Bike Loan

1. Opt For The Best Interest Rates Only

As you search online or offline for two wheeler loan providers in India, you will come across many lucrative options. How will you freeze on the two-wheeler loan provider who promises the best returns? One way of filtering the good ones from the many on hand is by taking a close look at the interest rates charged by them. Get the figures on record, talk to various lenders, watch out for hidden costs and compare the interest rates before moving forward.

2. Figure Out Your Credit Score and Ask For Discounts

As you go about the process, do remember to keep your currents assets/ liabilities, income statement, credit score, etc. handy. They will help in ascertaining your eligibility for the bike loan you seek. If you have an excellent track-record then it will become easy for you to negotiate the rates to your advantage. Make sure that you figure out the special loan offers, discounts and rebates (free insurance, no-cost accessories, zero processing fees, etc.) offered by automobile manufacturers and two wheeler loan lenders such as Bajaj Finance before signing on the bottom line.

3. Go For Optimum Loan Amount

You may want to borrow the maximum on-road amount that will make you eligible to get 80% (or more) of the total amount needed to purchase the bike of your choice. As you will be investing time and other valuable resources in getting the paperwork in order and paying up for the loan processing fees, you might as well go the full way. A smart option would be to maximize the motorcycle loan amount. This way, you will get the vehicle you desire as well as retain your monetary resources to take care of your other responsibilities.

4. Refrain from Over-borrowing

Ensure that you do not fall for the trap of over borrowing just because you can avail a loan. Use your bike emi calculator judiciously to compute the amount of emi on loan that you will be in a position to pay comfortably every month. If you take more loan than needed you will escalate the monthly EMIs that will put your overall budgets and finances off gear. In the worst-case scenario, you will find yourself struggling with the repayment of your two wheeler loan and thereby ruining your chances of getting credit in future.

5. Keep Your Repayment Plan Ready From Day One

It is important to chalk out and discuss the repayment plan with your partner and other loved one in the initial stages of taking the loan. Once you have the amount you require, stick to the plan so that you can alleviate the unnecessary concerns of repayment and enjoy your new possession and its many benefits. It is best to choose a bike loan provider who will provide access to grace periods and flexible EMIs to keep defaults at bay. The thumb rule is to not forget your EMI and you will be safe!