With the second wave of the unprecedented COVD-19 pandemic hitting the world, the demand for two-wheelers has increased significantly. A bike or a scooter is the best alternative to public transportation given the social distancing norms, and besides, it is an easy way to navigate through daily traffic.
Due to the financial instability induced by the pandemic, not everyone can afford to buy a wheeler. However, that doesn’t mean you should refrain from getting a two-wheeler. If you do not have the funds for it, you can apply for bike finance to acquire your favorite bike without putting any burden on your pocket.
Taking a 2 wheeler finance is getting one step closer to public conveyance. You can avail of almost 100% of the vehicle’s on-road price as a loan, and with the affordable bike finance interest rate, you can afford to pay your EMIs without defaulting on EMIs.
Everything to know before applying for a two-wheeler vehicle loan
Although applying for 2 wheeler finance is simple and easy, you must be aware of every factor that influences your loan application.
– Research and secure a higher rate of interest
Each lender has a different rate of interest depending on factors like your age, your income, and the nature of your employment. Conduct research and thoroughly evaluate the bike finance interest rate charged by different lenders. Search on the internet from the comfort of your home and make a list of all lenders with their interest rate offers.
After shortlisting a preferred lender, you can further negotiate with your lender about the bike finance interest rate to get the best two-wheeler vehicle loan possible.
– Leverage your relationship with your existing lender
You may have an existing relationship with a lender from whom you have taken loans in the past, and you have always paid your EMIs on time. You can leverage that relationship to get the best deal. Since you have a good relationship with your lender, they may trust you and offer you the best rates and benefits.
Discuss with your lender the requirements of getting 2 wheeler finance. You can also meet the branch manager to negotiate on getting an affordable rate of interest and choose a flexible repayment tenure.
Look for additional benefits
In India, lenders tend to attract customers during festive seasons by offering attractive deals and benefits. Besides getting unmatched interest rates, you can also get discounts. For instance, two-wheeler manufacturers collaborate with banks and non-banking financial companies to offer discounts to borrowers during Holi, Diwali, etc.
There are times when your dealership from where you want to purchase your two-wheeler vehicle already has an existing business relationship with lenders who are offering zero percent interest rates on no-EMIs. You can use this opportunity by keeping an eye on deals and benefits.
Check your ability to repay
You may want to buy a high-end two-wheeler because you are getting a salary raise and may even end up securing a two-wheeler vehicle loan, but what if your salary does not increase as much as you expected? You will find yourself struggling to make on-time repayments.
It would be wise to borrow according to your ability to repay. Assess your needs and preferences and figure out an EMI that you can afford to pay. You can use an online bike loan EMI calculator to determine the exact EMI you can afford by entering your desired loan amount, the interest rate, and the loan tenure. You can keep altering their values until you reach an affordable EMI.
– Meeting your lender’s eligibility criteria
Before applying for a two-wheeler loan, you will need to find out your lender’s eligibility criteria and ensure that you meet them. To acquire bike finance, you will need to meet the following requirements:
- You must be a salaried employee of a private or public undertaking, or you must be a self-employed individual.
- You must be 18 years old at the time of application and 86 years old at the end of the loan tenure.
- A salaried employee must earn a minimum net income per year (based on company policy).
- A self-employed individual must show a net profit per annum (based on company policy).
In a nutshell
Acquiring a two-wheeler bike finance is easy. However, you must ensure that you have a robust repayment plan in place before you opt for it. Making on-time payments of your EMI will also have a positive impact on your credit score.