Two-wheelers help riders to cut through heavy traffic in a short time. It saves time and money too. The demand for two-wheelers has increased in the market – the Indian two-wheeler market is estimated to reach an astounding $ 25 Billion by FY 2023. One of the driving forces behind this growth has been the availability of 2 wheeler loans.
What should borrowers keep in mind before choosing a 2 wheeler loan?
Borrowers could keep the following points in mind before taking a 2 wheeler loan.
- The credibility of the lender
- Competitive interest rates.
- Ease of applying for a loan
- Customer-friendly offers
- Borrowing limit
- Repayment plan
There are several options to choose when it is about applying for two-wheeler loans online. The bike loan that you apply for should be as per your specific needs.
The credibility of the lender
Various lenders in the market can offer two-wheeler loans. Hence it is important to research about their credibility. Prospective borrowers can use the internet to check out reviews offered for lenders. Borrowers can also interact with individuals in their network who have applied for bike loan online and collect their feedback
Competitive interest rates
This is perhaps the most important aspect of availing a 2 wheeler loan. Your EMI is largely determined by the rate of interest charged by the lender. Hence you must evaluate credible lenders according to the two wheeler loan interest rate they are charging on loans.
Ease of applying for a loan
Borrowers must also figure out whether the loan application process is convenient. In the case of most lenders who make it possible to apply online for a two-wheeler loan, it is convenient to apply for the loan. Borrowers just need to fill in an enquiry form online and be ready with the necessary documentation such as Id Proof, Address Proof and Proof of income.
Borrowers could keep an eye out for offers such as discounts or rebates. During festive season or other special occasions, lenders could offer customer-friendly deals. Thus borrowers may get the best possible interest rates or processing fees might be waived off when borrowers apply for two-wheeler loans online.
Borrowers should always have clarity before applying for bike loans online. They must not over-borrow because it could It get difficult to repay EMIs on time. This could lead to defaults and affect the borrower’s repayment history and thus, credibility. Defaulting on EMIs multiple times could have a bad impact on their creditworthiness and the financial institution might even claim possession of their two-wheelers.
This is a key factor to keep in mind before taking a 2 wheeler loan. The tenure of repayment should be decided by looking at the borrower’s monthly income. Ideally, the borrower should look to pay off the loan early. The chosen lender should be able to provide flexible EMI options that make it easier for the borrower to repay the loan.
Thus, two-wheeler loans should be taken by considering a lot of things. The entire process of availing two wheeler loans online is quite convenient.