Things to consider while availing a two-wheeler loan
If you are considering buying a motorcycle, but do not have the necessary cash at hand to make an instant purchase, you are likely looking to apply for two wheeler loan. Now, there was a time when availing any kind of loan was supposed to be a tedious process. However, these days applying for a loan including a motorcycle loan is as easy as clicking the mouse button.
Buying a motorcycle does not need to be a trying adventure; let’s ease the process and save your experience for the road by looking into essential factors on two wheeler loans.
Spend a good deal of time on research
Going through the fine print of a two-wheeler loan is not exactly fun, nor is it exciting. Similarly, asking financial questions can also appear tricky. However, all these factors play a vital role in helping you find the right two wheeler loan. If the thrill of buying your dream bike is tempting you to rush through the loan process, you may want to stop for a minute. It can help to remind yourself that taking it slow and spending time understanding the loan can help you save years of financial stress eventually. Do not be compelled to sign any loan documents on the spur of the moment. It is wise to be in control and ensure that your two wheeler loan and your future is secured.
Get realistic on the budget
To choose the right loan product, you must have clarity on your affordability to borrow. Here, it can help if you spend considerable time on understanding your budget, and if you do not have one, now is the time to create it. To understand your budget, look into some scenarios:
- How much of a monthly EMI payment can you afford if your current income and expenses remain constant?
- How many EMI payments can you make before you run out of money if you happen to lose your source of income?
- Can you reduce your spending power in one area of your monthly expenses to cover the two wheeler loan in the future?
Getting a clear picture on your loan payment in addition to your other expenses can give you a sense of how much you can afford realistically. Doing so can help you to decide on a two-wheeler loan confidently without having to worry about its financial effect on your day-to-day life. NBFCs like Tata Capital offers various EMI options so that you know you have your options open for repayments.
Looking into your credit score
Your credit score largely determines your two-wheeler loan interest rate. Before you pick out a motorcycle loan, it can be a good idea to know your credit score. This can help you choose specific offers that you may be eligible for. Meanwhile, you may want to ensure good credit habits such as paying your bills on time and in full and using only 10% of your available credit limit every month. Check your two-wheeler loan eligibility before applying for one.
Brushing up on loan terminology
Doing some research and learning on different types of loans can help you get an idea of the interest rates on your two-wheeler loan. If you are comparing different loans, you may want to look into payment schedules, eligibility requirements, processing fees and various charges and similar details. You may also want to look into the credibility and reputation of various lenders in the market that can help you to select the right lender.
It is essential to remember that taking a two wheeler loan and repaying it must not be a stressful experience. Two wheeler loans from NBFCs like Tata Capital are designed to make motorcycle purchases or investments affordable for you. Focus on the bike of your choice, check your eligibility status and pick out the right two wheeler loan.