Are you planning to buy a brand new bike? Well, rather than dipping into your savings, you can opt for a two-wheeler loan instead. However, they say “half-knowledge is worse than ignorance” and it is especially true when it comes to taking loans.
Several misconceptions might hold you back from opting for a loan. But contrary to what you might believe, taking a loan has never been this easier. Nowadays, several lenders offer convenient loans to help you finance your dream bike.
Having said that, let’s take a look at the common myths about the two-wheeler automobile industry.
Myth #1: Applying for a loan is cumbersome
Gone are the days when you had to visit the lender to complete the loan formalities. Now, with an online application and verification process, you can take care of everything, including the documentation, from the comfort of your home. Thanks to the digital platform, lenders process your loan application within a couple of days.
Rest assured, you can enjoy instant approval and receive your funds in the least possible time.
Additional Read: Do’s and Don’ts While Applying for a Two-Wheeler Loan in India
Myth #2: Low-interest rates equal cheaper loans
While yes, lower two-wheeler loan interest rates lead to a lower EMI payment towards the loan. However, interest rates are not the only factor that impacts the affordability of the loan. You may have to pay additional charges like processing fees that can end up increasing the overall loan cost. So, make sure to consider such factors before applying for a loan.
Myth #3: A bike loan involves extensive paperwork
The bike loan application process involves too much paperwork, right? Wrong! The thought of extensive documentation is enough to scare you away from a loan but this is now a thing of the past. However, with an online application process, most lenders have introduced an online KYC verification procedure that requires minimal paperwork. Thus, ensuring a seamless loan approval.
Myth #4: High credit score guarantees approval
While it is true that a higher credit score is crucial for a smooth loan process, it does not guarantee approval. That’s because most lenders consider multiple criteria including, income, employment, business revenue, etc., along with your credit history to assess your creditworthiness. So, you must understand the eligibility criteria set by the lender before applying.
Additional Read: Top 5 Myths About The Used-Car Loan Industry
Myth #5: Interest rates on bike loans are too high
This is one of the biggest myths about the two-wheeler industry. Most people shy away from taking a loan believing that the interest rates will be too high to afford. Well, that’s not true at all!
The lender will consider several factors like income before deciding the interest rate. Not to mention, if you have a good credit score backed by a stable income, you can easily negotiate with the lender for affordable interest rates and enjoy a comfortable repayment process.
Now that we’ve debunked these common myths, it’s time to take home your dream bike with easy financing options from Tata Capital! Enjoy instant approval, attractive interest rates, flexible EMI tenure, and more.
Use our two-wheeler loan EMI calculator to estimate your finances or check out our eligibility criteria today.