Last Updated on May 20, 2021 by MoneyVisual
When you have set your heart on a two-wheeler bike, there is nothing much to stop you from getting it other than money. Some of them cost a lot. Such a large amount of money cannot be drained away from the bank balance at a go.
This tends to put a lot of financial pressure and makes people unprepared for any contingency that may arise unexpectedly. In times like these, a two-wheeler loan becomes extremely helpful to finance the down payment needed to get possession of the bike. Several conditions need to be kept in mind before choosing a two-wheeler loan, though. The factors are listed below.
1. Eligibility Criteria
The first thing that people need to look at before applying for a Two wheeler loan is the eligibility criteria for the loan. Different banks have different rules for applicants, but there are some of them which you will find familiar among many of them.
This includes criteria like having a stable job for a year, three month’s bank transaction statement and being of at least 21 years of age if applying for a loan without a co-applicant. These criteria need to be compulsorily met by any applicant before applying for a loan to hold a chance to get the two-wheeler loan passed.
2. Amount of Loan
The next factor that needs to be considered while you think of getting a two-wheeler loan is the amount to be taken as a loan. There are two factors on which the bank decides the amount given to the applicant as an investment. They are:
- The price of the bike
- The evaluation of the eligibility of the borrower to repay the loaned amount
These factors are necessary as they are directed towards a specific loan and it’s repayment. Apart from the loan taken, the applicant has also to consider the amount that has to be paid as a down payment for the loan. Some banks do not charge any down payment, and people can opt for it.
3. Length of Process and Time
Earlier, the process of getting a loan passed took a long time. It used to be loaded with tons of paperwork, hours of roaming about from one office to the other and a lot of effort on the part of the loan applicant. This practice has been thrown out the window by the banks for the better.
Minimum documentation and hassle-free process have enabled people to step up and apply for two-wheeler loans. This makes the process of loan approval shorter, and the amount gets credited to the account of the applicant in as little duration as 24 hours.
4. Installment Amount or EMI
If you take a loan, you have to pay the EMI. Non-payment opens people up to lawsuits and legal cases. One should always keep in mind the installment amount that will have to be paid monthly. It can be easily calculated using the bike loan EMI Calculator. The term of the loan primarily influences this EMI, the interest rate and the amount borrowed. Although the rate of interest and the amount of the loan are not factors that a borrower can influence, however, the term of the loan can be negotiated to come at a comfortable EMI per month.
5. Special Offers Given by the Banks
Apart from the loan, some special offers are given by the banks to the loan applicants. A reduction in the processing fee or an extension of term period are examples of such special offers. They should be known to the loan applicant and availed.