Owning a two-wheeler can mean different things to different people. Some depend on it for daily commute to work or business, while some may use it to travel or even just run errands.
The COVID-19 lockdowns have made us reconsider our buying choices and realise the importance of having a two-wheeler handy. If you are also one of those considering buying ones but are short of resources, this article is for you.
The loan market is saturated right now, making it so easy for you to compare and get the best deal on a two-wheeler loan by applying online. Loans can make it possible for you to make your dream come true without having to dip into your savings.
Here are five aspects of loans you need to consider before finalising a two-wheeler vehicle loan:
1. Fish For The Best Interest Rates
A simple online search for the best two-wheeler loan can get you instant results for comparison. You can take this information and compare the interest rates offered by the lenders. Take your time, consult experts with every company and compare all costs. Also, ask for special loan offers and discounts that some lenders offer to attract more customers and take advantage. If you have a golden track record, you will be in a much better position to negotiate your interest rates. So keep your income statements and credit scores clean.
2. What Type Of Loan Is Being Offered
There are two types of loans offered worldwide: secured and unsecured for every category. A secured loan can get you lower interest rates, but you will have to pledge something as collateral against the loan. An unsecured loan doesn’t require any collateral, which is why sometimes it can be expensive. Though most two-wheeler loans offered by Indian lenders are unsecured, there may be a few lenders who offer secured loans with lower interest rates.
3. Borrow What You Need
Just because there are many loan options available in the market doesn’t mean you need a lot of money. Over-borrowing can often lead to financial burdens and higher interest rates which can shoot up your monthly payment installments. That can significantly derail your overall budget and finances. The worst thing that can happen is you defaulting on the loan, negatively affecting your credit score.
4. Create A Repayment Plan
While availing of a loan can be easy, the repayment is not. Discuss and create a repayment plan with your lender by choosing a comfortable tenure. Adhering to the same will keep you away from financial burden and allow you to enjoy your purchase thoroughly. Consider using a two-wheeler loan calculator to see what your monthly expenses will look like. See if you can opt for flexible EMIs and grace periods so that you never default on your loan. You can even choose an auto-debit option for your EMI for easy repayment.
5. Loan Processing Time
Once you have selected the vehicle you want, it can be challenging to wait for the loan amount to be disbursed. Consult with the lender about the turn-around time for loan disbursement. Once you submit everything required, it should not take more than ten days for the loan amount to reach your bank account. There are also options where the lender directly pays the two-wheeler dealer on your behalf. This saves time and brings your vehicle to you faster.
Loans can be a great way to finance your dreams. But you must always proceed with caution. Loans can become a burden if you over-borrow or default on your EMIs. So, consult an expert to get the best out of your loan.