Pay Attention To These 7 Factors While Taking A Bike Loan

Buying a bike can be one of the best and exciting decisions you will ever make. However, doing so on a loan with the best terms can make the experience even sweeter. You certainly do not want to be paying hefty installments for prolonged periods. There are seven key things to keep in mind while purchasing a motorcycle loan to get the best possible deal. 

They are as follows - 
 
Checking the eligibility for the loan’s approval

Each financial institution has its own metrics to check if you are worthy of a bike loan. They will, depending on their criteria, check if you are at least twenty-one years of age, go through the last three months of your bank statements, and might want to know if you have had a stable job for the past year. To ensure that your loan is approved, check beforehand if you fulfill all of the lender’s criteria. 

Also Read: Purchasing a bike on EMI
 
Knowing the two-wheeler loan amount on offer
 
The next important thing to know is how much the bank will give out as a loan. It is determined by your financial health and the price of the bike you are buying. A bike loan calculator, such as this will help you with the information.  

Easy Monthly Installment (EMI) to be paid
 
Another important aspect a borrower looks for in a loan is the EMI. The monthly installments that you need to pay depends on:
 

• Bike loan interest rate 
• Tenure of the loan
• Loan amount 

 You can find out the EMI to be paid on a bike loan from a top lender with their bike loan EMI calculator.  If you cannot reduce the loan amount and the bike finance interest rates, then reduce the EMI by extending the tenure for loan repayment.

Also Read: Factors that Affect Interest of Bike Loan

Look for special offers
 
Compare multiple loan providers and see who is giving out the best offers. It is a prudent decision to take a loan during the festival season, as many offers will be available. Also, look for offers such as zero/low processing fees, lower interest rates, etc. that are available. 
  
Loan application process
 
You also need to check how convenient it is to get the loan as many lenders process the loan application instantly and credit the amount to your bank account. Look out for easier and faster processing, instant eligibility checking, minimal processing, and documentation.

The repayment plan for the loan for bike
 
It is crucial to look for a loan that you can pay off conveniently. Search for loans with adjustable tenure and a low EMI as well. Further, it is necessary to select a loan with flexible EMIs and grace periods so you do not miss even a single EMI payment. Note that these aspects are largely dependent on your creditworthiness. 

The option for zero down payment bike loan
 
Also, it is important to consider how much down payment the financial institution expects. It is worth noting that some financial institutions offer zero down payment bike loans. You can make use of that. However, if you want your repayment amount and tenure to be low, ensure that you pay a sizable amount as a down payment to the financial institution.

Also Read: A Ready Guide to Two-Wheeler Loan
 
Conclusion
 Other than this, you also need to look at what the clients are saying about these loan providers. Moreover, it is wise to go through the terms and conditions properly before taking on a loan. Following this, will help you get a great deal on your loan and let you achieve your goal of buying a bike without losing your peace of mind.