Bikes are a convenient commute option when it comes to complex Indian roads. It not offers better comfort but also is cost-effective. Additionally, for many it holds a sentimental value. However, increasing prices sometimes make it challenging for many to afford their desired bike upfront with regular savings. In that case, financing the purchase with two-wheeler finance makes the decision easier. Lending institutions like Hero FinCorp offer a bike loan to finance up to 95% of the total cost, assisting you in taking your dream bike home without stressing your finances. At the same time, it is also important to consider a few important factors while opting for monetary assistance from a lender.
Table of Contents
1. Eligibility Criteria
The eligibility criteria for a bike loan application vary across lending institutions. However, most follow similar standards, like minimum and maximum age requirements, work experience, monthly income, etc. Visit the preferred lender’s website and check their eligibility criteria to ensure you can fulfil them. This will prepare you for the application, boost your chances of getting approval, and help you obtain the best plan without hassle.
2. Loan Application Process
Earlier, applicants had to visit the lender’s office several times and wait days to get approval. With new technological expansions in the industry, modern loan companies today support digital procedures, allowing loan seekers to complete the formalities from their homes. Consequently, getting two wheeler finance is now a quick, straightforward and hassle-free process as long as you fulfil the lender’s requirements.
Visit the official page and fill out the application form with your financial, employment, and personal details. Besides, provide information about the bike you want to purchase, including the on-road price, RTO location, dealer’s name, etc. Also, submit the required documents online, including the following:
- Application form
- Passport-sized coloured photograph
- Identity Proof: Passport, identification card, PAN card, driving licence
- Income Proof: Bank statements, payment slips, income tax returns
- Address Proof: Mortgage bills, property title or deed, utility bills
3. Credit Score
Financial institutions assess applicants’ credit scores when they apply for a bike loan. The better the credit score, the better interest rates you may get. However, those with a low score face difficulty with the application or may get higher rates.
A good credit score shows high credibility as a borrower, making the bike purchase easier with a loan. Moreover, a decent credit rating makes other perks available, such as zero processing charges, discounted interest rates, pre-approved loan offers, etc. While various lenders offer different interest rates on bike loans, you can always get a better loan deal with a higher credit score.
4. Interest Rate
Comparing different lenders’ interest rates when looking for a bike loan is essential. Take time to compare and consider a loan provider offering a reasonable interest rate fulfilling the bike loan’s requirement. Furthermore, compare the loan plan based on fixed and variable interest rates. Comparing the loan plans helps get two wheeler finance at the lowest interest rate, making the loan more affordable and EMIs manageable. Also, compare the loan plans based on monthly EMIs and repayment tenure to get the best deal.
If you are in the planning stage, wait for the lender to announce festive offers. Compare multiple lenders and see who is giving out the best offers. For example: top NBFCs like Hero FinCorp may offer two wheeler insurance at discount, or low interest rates, no processing charges, and other favourable terms that help save money on the loan cost.
Taking a bike loan during the festival season is a good idea since many offers will be available. In addition, check for offers such as zero or low processing fees, free accessories, free gold coins, and low-interest rates. Keep a close watch on your lender’s website and social media for seasonal discounts and offers.
5. Additional Charges
When applying for a bike loan, remember that interest is not the only payment you must make to borrow the required funding. Lending institutions also charge additional charges like processing fees, documentation charges, prepayment charges, etc. Since these charges vary by lender, opting for a loan plan with the lowest additional charges will significantly reduce the financial burden.
6. Repayment Tenure
When you borrow a Two-wheeler Loan, its Equated Monthly Instalment or EMI largely depends on your repayment tenure. Hero FinCorp allows borrowers to opt for a repayment term of up to 60 months. The term you choose largely impacts the loan amount you borrow and the monthly EMI amount.
A long tenure reduces the EMI amount, while increases the interest payable. On the other hand, a shorter tenure increases the EMI amount, while reduces the interest outgo. Therefore, choose your repayment tenure wisely using an EMI calculator when applying for a bike loan. You can find these tools on the top lenders’ websites. Enter your principal amount, interest rate, and repayment tenure to calculate the monthly payable amount and plan your finances efficiently.
7. Loan Amount
Most lending institutions have unique standards for the minimum and maximum loan amounts they can sanction. Although they cannot finance complete cost of the bike, reputable loan providers like Hero FinCorp finance up to 95% of the bike’s cost. However, the more you borrow, the heftier your financial burden gets. That is because a bigger loan amount means more interest outgo, bigger EMIs, and longer repayment terms.
Choose a bike you can afford to buy with a loan, make the maximum possible down payment, and borrow wisely. Moreover, make a solid repayment plan by evaluating your finances and creating a budget for efficient debt management.
Borrowing two-wheeler finance will bring you closer to your dream bike purchase. However, do not hurry to make a hasty decision. Go through these mentioned suggestions to ensure you make the right decision. Moreover, review terms and conditions and the lender’s reputation to get the best deal.
While looking for a reliable and trustworthy platform, you can always rely on Hero FinCorp. It offers you smooth, hassle-free, and transparent process of borrowing.
