Motorbikes have become the most widely used mode of personal transportation in India. Due to rising car prices, bikes are a significantly more cost-effective option for commuters. Additionally, they can quickly navigate through traffic. This enables riders to get where they’re going much faster than a four-wheeler. It aids in time and financial savings. Consumers prefer Honda Motocorp for bikes. This company’s stylish, budget-friendly, top-rated technology attracts everyone. Nowadays, everyone is prone to buy two-wheeler on Equated Monthly Installments because of their accessible repayment tenures.
A financing option is available with easy EMIs. You can check out and compare several models’ prices, EMI, and features. For instance, you may want to check the Honda Activa EMI price. You can effortlessly do this with an online EMI calculator.
A financial tool called a two-wheeler loan enables you to borrow money from a lender for a two-wheeler. In most cases, 80% of the bike’s cost is financed through a loan. The remaining 20% must be given as a down payment to the bike dealer. These loans are popular because they have relatively low-interest rates and simple, flexible payback schedules.
Two-wheeler loans are a great option for those who want a motorbike but cannot afford one immediately. You must be aware of many crucial details if you purchase a bike on EMI.
· Loan amount-
The total amount of the loan you are requesting also affects the interest rate. Your loan amount depends on how expensive your bike is. You will require a larger loan if you are choosing a costly vehicle. This leads to a higher interest rate because the financial institution is taking a more considerable risk by giving you a larger sum. A bigger loan increases the likelihood that you would default. So, the interest rate gets high.
· Eligibility criteria-
The eligibility requirements change depending on the lender. Therefore, you should review the conditions on their website before requesting a loan. Make sure you meet every requirement. That will simplify the lending process for you.
· Credit score-
One of the most crucial considerations is your credit score when applying for a loan. It’s a number that credit rating organizations give you after taking into account a variety of factors. These factors include how many loans you’ve taken out, how much you borrowed, whether you made on-time payments, etc. Any score over 700 is considered an excellent score on a scale of 900. This score will determine the bike loan interest rates, and a high rating will result in a cheap interest rate.
Your lender will request supporting documentation to confirm the information you supplied. You must provide documentation of your identity and residence. You will also be required to give them all of your income-related documentation. Your pay stubs, tax returns, and bank statements will all be part of that. It will save you plenty of time if you have all your documentation ready in advance. As a result, you won’t have to wait weeks for your loan to be approved.
· Interest rates-
Do not choose the first lender you encounter. Do research. Compare the rates that various lenders are offering. The interest rates are offered from 9.5% to 17%. You can find the most affordable rates by comparing them. Your loan will thus become more reasonable.
· Loan tenure-
The cost of your bike loan EMI depends on the length of your loan. The interest rate will be lower if your monthly EMI payment is big because there is less chance that you will default. Your interest rate will be substantially higher if you have long tenure and a low EMI rate. This is a standard rule in the lending business.
· Additional charges-
Well, you have to pay more than just interest. Your lender will also charge processing costs. The lender will determine the costs. Processing costs can reach 3% of the overall loan amount. Be sure to choose a lender with the lowest processing costs. You’ll have less financial stress as a result.
· Seasonal offers-
Keep an eye out for seasonal deals and discounts on your lender’s website and social media profiles. During holidays, lending institutions frequently provide interest rate discounts. You will get to take advantage of these offers if you keep track of them.
· Bike EMI calculator-
You can determine your two-wheeler EMI amount with a bike EMI calculator. You can manage your finances effectively if you know your EMI amount.
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