Seven Smart Ways To Choose Right Two Wheeler Loan OnlineAuto Financing & LoansUpdated on Dec 3, 2018 View more like this | Visit India, UN | Contact Navneet Sharma |
The fuel efficiency of modern scooters and bikes motivates buyers to purchase these vehicles as they fit the budget of the middle-class household. For daily commuters who travel long distance for work, two-wheelers are an ideal vehicle as it is cost and fuel efficient. Quick approval, flexible repayment options and easy documentation have made two-wheeler loans immensely popular with Indian masses.
With internet revolution and e-commerce boom all across India, several banks have launched web portals to encourage customers to apply online. Before you think of a two wheeler loan and apply online, there are certain factors to be kept in mind like interest rates, repayment options, loan tenor and documentation. Always compare the benefits by surfing the different bank portals which offer comprehensive information about the bike loans.
Below are some of the important factors you must consider before applying for a loan:
1. Choose a bank which offers best interest rates: If you want maximum benefit out of your online two-wheeler loan then browse for best offers on the websites of different banks. Then, shortlist the bank which gives lowest interest rate on bike loans. Keep in mind, even the slightest difference in an interest rate can mean thousands of Rupees in repayment. Hence, it is important to get a lower rate of interest to reduce the financial burden and avoid undue stress.
2. Apply during the festive season: Most of the banks offer attractive discounts during festival season or special events. You can avail benefits like lowered interest rate for the first few years, zero processing fee, free insurance, gold coin etc. So, applying for an online two wheeler loan when schemes and offers are available may decrease the overall cost of the loan.
3. Read all the documents carefully: Every bank website offers detailed information on the loans. Make sure you get help in understanding the technical clauses before signing any documents. Read the documents and ask your loan representative or customer care to help you understand the clauses. Think of a Bike Loan only when you have understood the T&Cs.
4. Flexible repayment options: Several banks offer flexible repayment options on bike loans. This means you can prepay the entire loan amount without any prepayment penalty before the loan tenor ends. It is an important factor as prepayment charges can be very steep in some cases.
5. Take a loan as per your paying capacity: Always apply for a bank loan as per your financial status and repaying capacity. Take stock of your monthly income and set aside a certain portion for paying off the two-wheeler loan EMI. It is advisable to keep some money in reserve for any kind of financial emergency, therefore, assess your ability for paying a long-term bike loan.
6. Fix your loan tenor as per your repayment capacity: Choose wisely your tenor by using the two wheeler loan EMI calculator and fix the period as per your repaying capacity. If you want to avail the lower EMI, then go for a longer tenor which will have a little high rate of interest but will suit your budget. If you have enough funds to pay the monthly EMIs, then go for shorter loan tenor with the lower interest rate.
7. Make higher down payment if you have sufficient funds: It is always advisable to make a higher down payment and have a lower EMI per month to beat the inflation. This way your loan tenor is also lowered and allows you to clear off the debt as soon as possible. If you have a higher repayment capacity, it also means, you can choose a higher-value bike!
With internet revolution and e-commerce boom all across India, several banks have launched web portals to encourage customers to apply online. Before you think of a two wheeler loan and apply online, there are certain factors to be kept in mind like interest rates, repayment options, loan tenor and documentation. Always compare the benefits by surfing the different bank portals which offer comprehensive information about the bike loans.
Below are some of the important factors you must consider before applying for a loan:
1. Choose a bank which offers best interest rates: If you want maximum benefit out of your online two-wheeler loan then browse for best offers on the websites of different banks. Then, shortlist the bank which gives lowest interest rate on bike loans. Keep in mind, even the slightest difference in an interest rate can mean thousands of Rupees in repayment. Hence, it is important to get a lower rate of interest to reduce the financial burden and avoid undue stress.
2. Apply during the festive season: Most of the banks offer attractive discounts during festival season or special events. You can avail benefits like lowered interest rate for the first few years, zero processing fee, free insurance, gold coin etc. So, applying for an online two wheeler loan when schemes and offers are available may decrease the overall cost of the loan.
3. Read all the documents carefully: Every bank website offers detailed information on the loans. Make sure you get help in understanding the technical clauses before signing any documents. Read the documents and ask your loan representative or customer care to help you understand the clauses. Think of a Bike Loan only when you have understood the T&Cs.
4. Flexible repayment options: Several banks offer flexible repayment options on bike loans. This means you can prepay the entire loan amount without any prepayment penalty before the loan tenor ends. It is an important factor as prepayment charges can be very steep in some cases.
5. Take a loan as per your paying capacity: Always apply for a bank loan as per your financial status and repaying capacity. Take stock of your monthly income and set aside a certain portion for paying off the two-wheeler loan EMI. It is advisable to keep some money in reserve for any kind of financial emergency, therefore, assess your ability for paying a long-term bike loan.
6. Fix your loan tenor as per your repayment capacity: Choose wisely your tenor by using the two wheeler loan EMI calculator and fix the period as per your repaying capacity. If you want to avail the lower EMI, then go for a longer tenor which will have a little high rate of interest but will suit your budget. If you have enough funds to pay the monthly EMIs, then go for shorter loan tenor with the lower interest rate.
7. Make higher down payment if you have sufficient funds: It is always advisable to make a higher down payment and have a lower EMI per month to beat the inflation. This way your loan tenor is also lowered and allows you to clear off the debt as soon as possible. If you have a higher repayment capacity, it also means, you can choose a higher-value bike!
