Benefits of two-wheeler loan

Banks provide different types of loans for different reasons. There are home loans if you want to buy a home, there are personal loans if you are looking for lump-sum money for a variety of personal purposes, then there is a car loan for buying the car. Like these loans, there is a two-wheeler loan to buy a motorbike. So, if you do not have funds to buy a bike, you can take a two-wheeler loan.

What are the benefits of taking a two-wheeler loan?

Taking a bike loan to buy a two-wheeler of your choice has several benefits. Some of the main benefits include:

  • You can get immediate 90 to 100 per cent funds. This helps you buy the bike of your choice. You can use a guarantor or co-applicant to get the loan.
  • The banks provide bike loan for buying superbikes as well. So, if you aim to buy a superbike, you can apply for the bike loan.
  • The bike loans are now available at attractive interest rates. You can look for the bank that offers you a bike loan at the lowest interest rates, to have a lower EMI.
  • You have flexible and vast methods of loan repayment tenure.
  • You can quickly repay your loan monthly. Use a bike loan EMI calculator to determine the exact monthly instalment amount.
  • If you pay every EMI on time, then you can have a good credit history.

Things to do before applying for a bike loan

There are certain things you must know before you apply for the two-wheeler finance.

Do your proper research before you apply for a bike loan. It is good to compare a few options that various lenders offer you. You can check their interest rates, processing fees, and repayment options along with other terms to find which lender is best and cheapest.

Find affordable lenders: The interest rate plays an essential role in determining the EMI of your loan. You must choose a loan that has a low rate of interest so that you can keep your EMIs low. It will also make your overall loan amount cheaper.

Compare floating rates and fixed rates: Some banks offer the facility of both floating interest rates and fixed interest rates. Floating rates are charged as per the market rates and are subject to change. Fixed rates remain fixed every time, even when the market rate changes. Most experts say that floating rates are lesser than the fixed interest rates.

Calculate EMI before applying for the 2-wheeler loans: even before you apply for the home loan, you must calculate your EMI. Try different combinations of loan tenure and interest rate to arrive at an affordable EMI that has a convenient repayment tenure.

Inquire prepayment fees: If you are considering the prepayment of the loan and closing your two-wheeler loan much ahead than the loan tenure, then ask the charges for the same from the bank. While some banks may charge you a fee for this, many banks do not charge prepayment fee. If you can prepay your loan, then you must consider this option as it will save your interest costs

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