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Factors To Consider While Comparing Two Wheeler Loan
17 Sep 2020
Description

Two-wheelers are the most efficient and helpful vehicles for the daily commuters, especially to those for whom time is of immense significance. Be it bikes or scooters; both are equally beneficial in their ways. While bikes offer more power, speed and style, scooters are incredibly comfortable, spacious and have made women exceptionally independent. 


But let’s be honest; buying a vehicle is not as cheap as buying furniture. So, if you’re thinking of availing a loan, not only will need to refer to a Two wheeler loan calculator but you must first analyse all your options critically and then make a decision. 


Given below are the factors that influence the two-wheeler loans, which you must look into whilst comparing the latter. Let’s study them in detail, one by one.


Eligibility

The first thing you need to compare is the eligibility criteria of various lenders. You must be a resident of India and should fall under the age range mentioned by the organisation. Other than these two, different lenders have different criteria. Some might ask you for a robust CIBIL score with credit bureaus, residential stability and permanent contact number.

Make sure you pass through all these filters.


The Loan Amount and Tenure

The next step is to study the minimum and maximum amount of loan you can avail from them. Calculate how much you need to borrow and how long will you take to repay. Besides the limit on the loan amount, there’s a restriction on the tenure as well. For example, for Bajaj Finance’s Two Wheeler loan, it’s three years while for others, even less.


Interest Rates and EMIs

One of the essential factors while deciding which lender to rely on for loans is the interest rate at which they are provided. Interest is lower on secured loans while higher on unsecured ones. Moreover, your financial stability also plays a vital role in determining your ability to repay the amount. 


Based on the interest rate, your loan amount and the tenure, you can easily calculate your EMIs or Equated Monthly Installments. EMIs are the monthly payments that you will make towards your lender to clear your debts. To calculate the amount you can either use online EMI calculators or, manually do it by using the below-given formula:


EMI = [P x R x (1+R)^N]/[(1+R)^N-1]


where P= loan amount

R= rate of interest

N= tenure


The lesser the EMI, the better.


Loan Process

Checking the application and documentation process is also necessary. You might be required to present your identity and address proof (Aadhaar card, PAN card, Voter ID, Passport, Driving License, etc.). Moreover, some organisations might also ask you for your bank statements, salary slips, job offer letter, incomes tax returns, business details (if any), etc. Make sure you have all these documents ready beforehand.


The most common application process is to fill a form for loan requirement online and then enter your personal and professional details, based on which your eligibility will be calculated. If you pass it, you will be contacted within 24 hours minimum for further approval.


Conclusion

Applying for a two-wheeler loan is not at all a challenging task. All it asks is your attention and comparative study on various lenders and their loan giving process. You must know about all the leading two-wheeler loan providers so that you can avail the best deal that benefits you without causing any inconvenience. Also, do not forget to read their terms and conditions as well as compare the additional processing charges they mention.

Tags
BikeLoan TwoWheelerLoan
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