At present, there is a high demand for two-wheelers in India because they are cost-effective, easy to maintain, convenient to use, and fast to travel as compared to four-wheelers. As per reports, approximately 21 million units of two-wheelers have been sold in 2019 in India. This number is nearly twice that of the sales of two-wheeled vehicles in India in the year 2011. Thus, we can see the rapid rate at which the demand for two-wheelers is increasing in India.
You don’t need to always have the money to buy two-wheelers. So, to make your dream come true of having a two-wheeler of your own, two wheeler loan which comes in the form of loans comes to your rescue. Here are the five most important things that you should know before applying for the best two-wheeler loan:
1. Get The Best Available Rate Of Interest
The most important thing before applying for two wheeler loanis to do a quick online search on the best rate of interest available in the market as it varies from lender to lender. To go for the best two-wheeler loan, apply online. Before you take the final call, talk to different lenders, compare the interest rate, calculate the overall cost and then finalize your lender.
The factors that play a vital role in accessing your eligibility for a loan for a two-wheeler vehicle are – your credit history and income. Certain lenders offer special discounts on two wheeler loan. Also, from time to time two-wheeler manufacturers come out with various offers.
2. Maximize Loan Amount
It is advisable to maximize your loan amount so that you don’t need to pay a huge amount upfront. The funds that you have saved can be used for some other purpose. Lenders may offer up to 95% of the showroom price of the two-wheeler.
3. Don’t Over-borrow
Though you should maximize the loan amount but do keep in mind that you don’t over-borrow. Try to opt for the loan amount for which you can easily pay the EMI without hampering your monthly budget. In case, you over-borrow and default on your monthly EMIs, you would be labeled a defaulter and this might impact your chances of getting any type of credit in the future.
4. Have a Plan For Repayment Of The Loan
Make sure that you understand the repayment plan from the lender very well. Try to stick to the plan without any fail so that your dream two-wheeler doesn’t become a burden on you. Try opting for flexible EMIs and grace periods so as to assure the repayment regularly.
5. Quick Processing
Once you have done all the formalities the loan is generally disbursed after a few days. The amount would be credited directly into the bank account of the borrower.
Please note that after you get your dream two-wheeler you should avoid doing any sort of modification in it as it might impact the insurance of the vehicle.
Conclusion
As you can see, two-wheeler loans are one of the best financial options available in India that you can use to buy a two-wheeled vehicle of your choice as long as you have a clear credit history. Now that we know all about two-wheeled loans and how to apply for them, let us take a look at some more information about the interest rates associated with these loans.
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