Two-wheeler
has become a crucial part of everyday life. It not only allows you to commute
easily but also helps you go places where a car possibly cannot. Due to the
exponential rise in demand for two-wheelers, many NBFCs have come up with
different kinds of bike loans to fulfil your dream of owning a bike or scooter
of your choice.
Since
a plethora of loan options are available in the market, it is quite challenging
for you to select the one that matches your financial requirements. Thus, we
have explained five important parameters that can help you compare bike finance and choose the one according to your needs.
Five parameters to consider
while comparing bike finance
1. Amount of
loan
The
first important parameter that helps in comparing the different loan options is
the amount of loan. Various non-banking financial institutions provide bike
finance with a minimum and maximum limit of borrowing. It varies
from lender to lender. Thus, you need to look out for loan providers that offer
two-wheeler loans for the amount that is suitable according to your financial
needs.
2. Duration of
loan
The
next crucial factor that you must consider is the tenure of the two-wheeler
loan. This is the time for which you will avail the loan and repay the
same. Like loan amount, every loan provider has its specific loan term for
which you can take the loan. Hence, it is advisable to take the loan for the
period you are comfortable with. You can also use the EMI calculator to
determine the amount of monthly instalments that you will be required pay
during the particular tenure.
3. Loan
interest rates
Bike
loan interest rates are one of the significant parameters that can assist you
in choosing the best kind of loan. This interest rate will also determine the
amount you will pay in your monthly instalments. NBFCs provide two types of
interest rates – Fixed and Variable. In fixed interest, the rates remain the
same throughout the loan tenure. Whereas, in the case of variable interest, the
rates fluctuate according to the market conditions. The type of interest rates you
want to select depends on your risk tolerance. Also, while availing bike
finance, you must go for the lender that charges low- interest
rates.
4. Additional
charges
Apart
from processing fees, some lenders also charge other additional fees while
disbursing the two-wheeler loan. Therefore, before you
finalize the deal with the particular lending institution, make sure to read
all the terms and conditions of the bike loan agreement to avoid any dispute or
conflict in the future.
5. Down
payment
Down
payment also differs from lender to lender. It usually depends whether your
loan is secured or unsecured. Some lenders provide 100% financing of your bike
or scooter. Others finance only 80% to 90% of the bike purchase. Here, you will
only need to pay the remaining amount as a down payment.
Summing it up
In
a nutshell, the above five factors can assist you in finding the most suitable
bike loan deal so that you can purchase a bike or scooter of your dreams.
