India has seen a rapid growth in the sales of two-wheelers which is a clear indication that bikes have become quite popular in India. October 2019 witnessed more than 1.7 million two-wheelers being sold in India. The over-crowded public transport and poor roads have made it an obvious choice for the people to own a two-wheeler. 2-wheeler loans are popular with buyers in India as it enables them to own a bike of their choice at low-interest bike finance without incurring any upfront cost. Lenders have made it convenient for prospective buyers by enabling that buyers can apply for bike loans online. Here are six things to check before choosing to apply for two wheeler loans online.
Finalize the Two-Wheeler
Firstly you need to finalize the two-wheeler that you wish to buy. You would also need to choose the place from where you wish to buy it. Once you make the choice, you would know about the quantum of loan that you might require.
Best Rate of Interest
Look out for a lender who can offer a favourable rate of interest. You EMI would be heavily influenced by the rate of interest on your two wheeler loan. Do not be hasty and choose the first lender you interact with. Take your time and compare interest rates charged by different lenders.
Be Aware of All Charges Incurred
If conducting research, consult with the lender asking them all the costs that are involved. These charges may be such as processing fees, loan pre-closure fee, or a late payment penalty. You must be mindful of these costs. Choose a creditor who not only provides a fair interest rate but also cites penalty rates, pre-closure of loans and late payment beforehand.
Do Not Over Borrow
Sometimes borrowers get tempted to over-borrow. This could be because they wish to buy a two-wheeler which costs much more than the one they initially had planned to purchase. Another reason could be that a borrower might assume that his income could increase soon and this would make it easier to repay the 2-wheeler loan.
However, one cannot predict the future. There could be unforeseen circumstances such as job losses or emergencies which could require one to incur huge spends. This would certainly make it difficult to repay the loan. Unpaid debts during this time could stress out the debtor and his family.
Keep an Eye Out for Special Deals
During the festive season, lenders may provide special offers. Two-wheeler loans would be available at favourable interest rates. There could be an exemption on charges such as processing fees. Borrowers must keep track of such lucrative offerings. Borrowers can use the internet and apply for two-wheeler loan online according to their needs as well as the offers being made available.
Have a clear repayment plan
A borrower must pay EMIs without defaulting as otherwise, it could dent his credit history. However, a borrower must not stretch the tenure just because the EMI would be lower. The borrower must consider his annual income and choose the repayment period accordingly. A lender who offers flexible repayment plans should be preferred.
If these points are taken into consideration, the consumer will easily acquire the best possible financial loan available in the market and will be happy to own one’s two-wheeler which is among the long-term most significant assets.