Buying a new bike is a major milestone for most youngsters. Many of us can relate to the emotion of saving up a little by little from the first few salaries or the pocket money to buy a bike, preferably the dream bike. Today, buying your dream bike is not that tough or time-consuming as many financial institutions are more than willing to give a loan for a two-wheeler purchase. You can easily get a bike loan at an affordable
two-wheeler finance rate
. However, the question arises; do all lenders provide similar services? Is there no distinction between the interest rates and offers given by different lenders? To address all of these concerns, today, we will discuss the factors to consider when selecting a lender for a two-wheeler loan.
- Eligibility Conditions: Every financial institution has its own set of requirements. They also have different methods for determining eligibility. Before choosing a lender for two-wheeler finance, make sure you meet all the standard requirements. Select a lender whose eligibility criteria match your profile. You may also be able to acquire a better loan deal this way.
Also Read: All You Need to Know about Getting a Bike Loan With 100% Financing - Loan Amount: The loan amount is the most important factor to consider while choosing a lender. What if you want to buy a costly bike, but your two-wheeler finance company only offers a small amount? Choose a lender that will provide you with a sufficient loan amount and high LTV ratio to purchase your dream bike. The loan amount is influenced by several factors that should not be overlooked.
- EMI: The EMI is largely dependent upon the loan tenure. Choose the EMI that best fits your financial budget. To know and decide on your two-wheeler EMI, you may use a two-wheeler finance calculator. It is a customised online tool to calculate EMI. Knowing an EMI beforehand will assist you in choosing the perfect lender for two-wheeler finance.
- Additional Charges: Borrowers not only pay the interest component on their bike loan but also pay several other additional charges. There could be multiple hidden charges in the agreement. Before proceeding with your lender, read the fine print of the loan terms. It is best to go with reputed lenders such as Hero FinCorp for a two-wheeler loan as they do charge anything extra other than what quoted. They ensure transparency in payments.
Also Read: Follow These 7 Tips to Pick the Perfect Two-wheeler for Your Needs - Repayment Facility: Choose a lender who provides flexibility when it comes to two-wheeler loan repayment options. There could be situations when you may want to foreclose or prepay a portion of your loan. Check to see if there are multiple repayment options available with the lender or not.
- Loan Process: Obtaining a two-wheeler loan is a simple process. You can easily avail of this loan if you meet the qualifying requirements. Borrowers must, however, confirm with the lender about the loan process and the time taken for the loan disbursal. One must also check if the lender offers a two-wheeler finance online application. Some lenders also offer door-to-door service with minimal paperwork. Choose the lender that is most convenient for you.
- Special Offers: Financial institutions provide unique offers to their existing and new consumers regularly. If you are planning to avail of two-wheeler finance during a festive season, you might get a special offer on your loan deal. Before applying for a loan, it is a good idea to compare the offers with different lenders.
- Customer Service: It is one of the most overlooked aspects while getting into an agreement with a lender; interestingly one of the most important too once the loan is approved and disbursed. Borrowers should check if the financial institution has a good customer service department or not. You are most likely to need their assistance throughout the bike loan repayment period.
Also Read: Factors that Affect Interest of Bike Loan To Conclude
By making sure that you choose the right lender you will make your loan repayment journey smooth and stress-free. So, take time out, do your research and team up with the best in the industry to turn your dream of owning a bike into a reality.
