Bikes are affordable compared to four-wheelers, they can squeeze through traffic, can be easily parked, and offer higher performance and fuel economy. Clearly, they are a popular option for commute and travel.
Amongst road travellers and motorheads, bike loansare extremely popular. While taking a loan, you are understandably for competitive interest rates and maximum financing to purchase the vehicle of your choice.
Some prefer to ease their financial burden by asking for a low down payment while others prefer making a substantial down payment so that they can avail lower EMIs and reduce future payments. A good consumer profile can motivate the lender to offer a lower interest rate. If you’re looking tofinance up to 100% of the vehicle value, here’s how you can do it.
How to get a bike loan – Eligibility and documentation
If you are 21 years of age or above, you are eligible to apply for a two wheeler loan. The lender will analyse your documents and declare whether you are deemed fit for the loan. The lender also keeps personal documents to track you if you are unable or refuse to make the repayments.
The loan amount is greatly determined by your income and financial stability. The lender will ascertain your financial eligibility with payslips, transactional, and debt history. A good financial profile will increase your eligibility and is likely to fetch lower interest rates. Zero down payment is one of the benefits of having a high credit score and financial track record. This makes it likely for the lender to finance 100% of the bike value and fast tracks your purchase.
Additional Read: What is a zero down payment two-wheeler loan?
The importance of a good credit score
Credit information companies like CIBIL accumulate data from the lenders and financial institutions and generates a consumer’s credit score. Lenders reduce their own risk by looking at the applicant’s credit score before finalising a loan. The higher the credit score, the lower is the risk to the lender and it is able to make a better offer to the applicant. Credit scores can be kept close to 900 by making timely payments, maintaining a good credit history, and minimising personal debts.
Two wheeler loan interest rate vary across lenders. Usually, bigger loans come with better deals and comfortable repayment options. Some lenders charge exorbitant prepayment and processing fees which can increase the load of clearing payments. Prepayment charges, margin money, and advanced EMI is jargon used by banks and lenders and a buyer should familiarise himself with these terms before confirming the loan.
Additional Read: Getting Home a Two Wheeler? 4 Tips to Follow
These tips should assist you in securing 100% finance for purchasing the bike of your dreams. Tata Capital offers bike lovers loans at reasonable two wheeler loan interest rates, making the purchase a quick and easy one. We present a great portfolio to make your buy hassle-free and efficient.
Stop wondering how to get a two wheeler loan and contact us today!