Indian is one of the largest markets of bikes. Bikes are a cheap and convenient way of personal transportation for millions of Indians. public transport means giving up your freedom and commuting as per the scheduled times of buses and trains. If you have a two-wheeler you neither have to bearthe pain of commuting on the crowded buses or trains nor have to spend huge money in the name of the transport. The good thing is that you can now get a loan very easily nowadays because two wheeler loan marketis huge and growing day by day. So, why not have a two-wheeler for personal mobility?
Traveling in a personal two-wheeler is a much more convenient, safer and less expensive way of communicating from home to office rather than going on public transport. Many financial advisors advise applying for a bike loan online and it is certainly a great idea to avail of a two-wheeler and do the repayment of the bike in an easy EMI. However, you must know all the things that you need to do before applying for the two-wheeler loan.
That is the reason why in this post we have come up with the entire things that are essential for you to know about a bike loan.
Why should you take a two wheeler loan?
Two wheeler loan market in India is really huge and It’s increasing day by day. From 2020 to 2025, global market of two wheeler loan is projected to grow from US$7.2 billion to US$ 12.3 billion. On the other hand, it’s also seen that younger generation who is the prime group of buyers of bikes is taking loans for bikes more than anything else that is almost 21%.
There are a lot of reasons for which it is always better to take a Bike loan online when purchasing a bike and some of the most essential reasons are given below:
- If you apply for two wheelerloan online you will require minimal paperwork and in many cases no paperwork at all.
- Applying for the loan online is comparatively easy for you and you can even get the loan without visiting the office. Hence, it will becompletely hassle-free when you apply online.
- Another biggest advantage of applying fora loan online is that the loan amount is disbursed quickly as compared to that of the paper application. If you are taking the help of an online platform, it could be as early as a few hours.
- When you apply forthe loan online you will get different payment options and you canchoose the one that is convenient for you.
- You will also get a competitive interest rate while youapply forbike loanonline. Apart from that, while you apply online you will get a higher loan amount.
- When you apply for two wheeler loan most of the lender requires salary slips, age proof, bank statements, address proof but in online loan application you need minimal documentation.
What you have to keep in mind while applying for a bike loan online?
- Check the interest rate of the loan: The rate of interest is different from lender to lender and it is always advisable to compare the rate of interest instead of applying for the first loan you see. You can just simply research on the Internet and you will get numerous results offered by different lenders. However, the lenders consider several factors such as credit score, age of the borrower, residence stability, current asset, income, liabilities, etc. determines the eligibility and the rate of interest.
- Never over-borrow: You may get the loan very easily while applying online since bike loan online approvalis hassle-free. But it does not mean that you will take the loan at any cost. Whenever you apply for the loan first calculate the EMI and determine whether you are comfortable enough to pay the amount every month. But if you over-borrow then your monthly EMI will grow up and it will disturb your monthly budget. In case you will not be able to pay your EMI it will badly affect your credit score due to which you will find it difficult to apply for a future loan.
- Decide your repayment plan: Before you apply for bike loanit is very essential to think about how you will do the repayment. That is the reason why it is always advisable to discuss the repayment options. After that, you have to decide which repayment option will work for you and you should stick to it. Generally, most people choose that system which allows them to give flexible EMIs and grace period since this type of system makes sure that the borrower does not default on their monthly EMI payment.
- Less processing fees: When you apply for the loan online you will have lower processing fees. Generally, the lender charges 0 to Rs. 1000 processing fees. Before you apply for the loan you can also consider the ways to get loan at best interest rates.
- Pre-payment and foreclosure: Another most important thing that you must check is what amount the lender charges for the pre-payment and foreclosure option. The pre-payment option means when the borrower wants to repay the pending amount partially or fully. Generally, the lender charges from nil to even up to 3% for pre-payment and foreclosure. You have to check very carefully what the lender charged for pre-payment and foreclosure. Some lender does not provide the option for the pre-payment and hence in such case, you will not be able to repay your loan before time.
- Down payment: The online approval may be an easier option but you have to check how much down payment you have to do for taking the bike. Generally, the lender provides 80% of the on-road price or 100% of the showroom price.
The best way to get a loan for your two-wheeler is by applying through an online platform like Droom Credit. They take care of everything related to the loan application and help you grab the best option.