By You can opt for a two wheeler loan if you are planning to buy your favourite two-wheeler but do not have adequate funds for paying the entire amount at one go. There will be several options of repayment, repayment period, interest rates, etc. You would also know the EMI (Equated Monthly Instalments) amount in advance with the help of an EMI calculator. It is an online tool to help you plan the monthly payoffs. Adjust the duration of repayment to choose an amount that would be comfortable for you. Read on to know about the factors related to this category of loan.
Certain factors are important and you should consider them while applying for a two-wheeler loan:
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Type of loan
Currently, there are two ways in which you can avail of the loan as per your financial status. Choose any of the loan arrangements that would suit you:
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Down payment and loan
You can make a certain amount of down payment while buying the two-wheeler and for the rest of the amount, you can take a loan.
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Zero down payment
You can take the entire amount of the loan without making any down payment. It will be 100% EMI-based financing for your two-wheeler.
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Your credit score
Lenders would look at your credit score before approving the loan and the minimum score would vary between lenders. However, a CIBIL score over 750 would help you get loans from most lenders. If you are taking a loan amount equal to the entire price of the two-wheeler, then the lender may stick to high credit scores as his risk would be higher.
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Eligibility criteria and documentation
The eligibility requirements vary between different lenders and the document requirements would differ. Before applying for a loan, check if you fulfill all the eligibility and document requirements.
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Interest rates
Whether you would avail of the loan from a particular lender, depends on the interest rate offered by him. This rate varies between lenders. Compare between several lenders to find the interest rate on your two-wheeler that would suit you the most. Also, check the other applicable charges so you can manage your expenses.
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Flexibility of tenure/ loan term
The tenure of loan repayment will determine the EMI amount that you have to pay every month. Check whether the loan term is flexible enough to accommodate your EMIs and it does not become an additional burden. Based on these conditions, you should choose the lender.
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Affordability check with EMI calculator
With the two wheeler loan EMI calculator, you can find out the EMI and estimate whether you would be able to pay the amount every month. If it seems difficult, you can adjust the values to arrive at an amount that you can easily pay besides maintaining your other expenses. It would also help you to decide on the amount of loan you should borrow.
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Conduct research regarding available lenders
Check the features and benefits provided by each lender by visiting their websites. This would be an easy and fast way to compare between lenders. It is important to research as you would be able to shortlist lenders with some of the suitable loan offers for you.
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Look for seasonal offers and discounts
Buy your two-wheeler at a time when you will find several discounts and offers by lenders. This would help you to get more savings. During certain festivals or times of the year, you will find that the lenders offer more discounts in the interest rate compared to the standard rates.
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Negotiation
If you have the required eligibility, you can negotiate with lenders for favourable terms of the loan, reduction in interest rates, or increase in loan tenure. You may manage to strike a good deal in the process.
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Features of the loan
Some of the features that you must consider when selecting a lender are the maximum amount of a two wheeler loan available, repayment options, the time for loan processing, approval, disbursal, etc, the maximum financing that you can get, and down payment that you have to pay.
While applying for a two wheeler loan, manage your finance requirements, go through the important factors like the loan term, interest rates, features, etc. Do some online research to get a loan with good benefits, so that you can repay back with ease.
