Two Wheeler Finance: Solid Tips To Choose The Best
Two wheelers are popular among Indians. It may be for commuting or earning a livelihood. Compared to 2011, 2019 saw an all-time high in sales of two-wheelers in our country. While almost 11 million two-wheeler units were sold in 2011, the sales went up to 21 million units this year. The urban market saw an unprecedented rise in the number of two wheelers sold in the country. The main reason is that more than half of the urban population earn a decent income to buy a two-wheeler.
With so many banks and financial institutions extending two wheeler finance, owning a two-wheeler is a cakewalk for the people now. Furthermore, the two-wheeler interest rate is low and has flexible payment conditions. Hassle-free documentation and quick disbursal of two-wheeler loans have made them further attractive to customers.
What are the tips to choose the best 2 wheeler finance?
Try To Get The Best Rate Of Interest
Whenever you approach a bank or financial institution for two-wheeler finance, they check for your salary, lifestyle, and credit score. The credit score is an important ingredient that aids you get a low two-wheeler interest rate. A healthy credit score can enable the borrower to receive a favourable rate of interest. Always opt for a loan with a big amount with a low two-wheeler rate of interest.
Have a Thorough Knowledge Of Eligibility Criteria
Whenever you approach a financial institution for a 2 wheeler finance, read the offer document carefully. It will contain a column that explains the eligibility criteria to get a loan. Each lender has different eligibility criteria that they expect the customer to fulfil. When borrowers are able to fulfil the required criteria, getting a loan is very easy.
Always Look Out For Offers
Is Diwali or New Year round the corner? If yes, it is the opportune time to get two-wheeler finance. During festive seasons the lenders will offer 0% processing feesÂ and low two wheeler loan interest rate.Â Sometimes, they will offer 1 or 2-gram gold coins for free. It is a wise idea to make use of these opportunities to get a loan.
Maximum Loan Amount
Just like you check for the rate of interest of a two-wheeler loan, you have to check for the maximum limit of the amount you can borrow from the lender.
When you approach a lender for a 2 wheeler finance, ask them whether they are ready to finance 100% of the two-wheeler price. Some lenders will be ready to finance up to 80 or 90% of the two-wheeler price. In such a case, you have to arrange for the remaining amount, which is the down payment for your bike.
It is common for all lenders to charge an extra amount as bounce charges, prepayment charges, or a small charge when you pay EMI late. You have to have extensive knowledge of all the charges when you have made up your mind to borrow from a particular lender.
In short, the two-wheeler market is gaining momentum in recent years. The market size has doubled over the last 8 years. Of late, owning a two-wheeler is a necessity rather than pride. There are a lot of banks and financial institutions that extend attractive two wheeler loan terms to the customers.