Congratulations! We would like to believe that since you have landed on this page, you are planning to buy your dream bike.
Let us tell you that you are one step closer to achieving your dream. Now if you are worrying about arranging the funds for it, please put those worries under the rug.
Why? Because with a Two wheeler loan from Bajaj Auto Finance, the complexity of bike financing can be easily solved. Two-wheeler financing relieves the stress of having to pay a large sum of money all at once.
Models like the Avenger, Pulsar, Dominar, Platina, CT 100 are popular among teenagers because of the riding style and comfort they provide.
They are prized for their cutting-edge technology and top-of-the line performance and loan is indeed one of the easiest ways to own one.
However, before you choose a loan, there are a few things to consider in order to receive the best deal. In this article, we will be throwing light on important points to keep in mind while selecting a bike loan. Let’s start!
Do thorough research
There are many financial institutions who are willing to provide a two-wheeler loan and each institution has its own specific loan terms and conditions. Interest rates, maximum loan amounts and loan to value ratios also vary by each institution.
Use the bike loan EMI calculator to compare loan EMIs from multiple financial institutions.
Loan amount and LTV ratio
The LTV ratio is determined by a number of variables, including the type of two-wheeler and the profile of the applicant. You must examine the LTV ratio and loan amount proposed by various lenders while choosing one. Make sure that the loan amount is not over-leveraged.
Many parameters, such as the income, age, employment position and credit history of the applicant, are used by financial institutions to evaluate loan eligibility and interest rates for two-wheeler loans. Although you may not always need a good credit history to get a two-wheeler loan, still having one will assist you to get the loan with a low-interest rate.
You must evaluate the Annual Percentage Rate (APR) of various financial institutions in addition to the interest rates since it takes into account all of the prices and expenses associated with obtaining two-wheeler financing.
When festivals are around or even during certain seasons, many financial institutions launch special attractive offers including lower interest rates, no down payment etc.
If you take up a two-wheeler loan during a promotional offers period, you could save a lot of money.
Flexibility of repayment
Before deciding on a loan, compare the repayment plans offered by various providers. Check to see if the lender allows for loan repayment flexibility. Always remember that the longer the term, the bigger the interest element will be.
Ensure the lender you select offers an EMI payment plan that is flexible. Picking a plan with flexible repayment EMIs will help you to pay off a loan quickly.
The Bottom Line
A two-wheeler loan has several advantages, including the freedom to commute whenever you want and the ability to respond quickly to times of emergency.
If you want to buy your dream bike, keep the aforementioned factors in mind while selecting the best two-wheeler loan for you and remember to utilise the bike loan EMI calculator while comparing various financial institutions.