You need to compare different lenders and online financing plans when looking for a two-wheeler loan. But you need to ask certain questions from a lender, as well as yourself, before beginning the process of a loan application.
When choosing a two-wheeler model and visiting your scooter or bike dealer, you need some time to think and analyze specific questions that might be popping in your head. It is best to make the most out of informed financial decisions when you’re putting so much money on a particular thing. That’s why it’s good to research thoroughly before finding the best two-wheeler loan option at the lowest rate of interest and minimum processing fee.
Here are the essential questions that you need to ask before applying for an online two wheeler loan:
1. What is the rate of interest on the applied two-wheeler loan?
The very first question that comes to anyone’s mind when applying for a loan is the interest rate that a bank or a financial institution charges on a specific amount of money. Many lenders offer two-wheeler loans at a low rate of interest. Usually, the borrowers with a good credit score can easily get a relatively lower interest rate.
2. What is the amount that the bank is financing?
Generally, 20% of the amount of two-wheeler cost is paid by the buyer and the bank finances the rest of the amount. Some banks, however, pay 100% of the loan amount on your behalf to the two-wheeler dealer. Therefore, it is important to know what amount your bank is going to finance for the loan. You can further repay the loan amount to the lender through easy EMIs that reduces the strain on your monthly expenses.
3. What is the final amount that borrower has to pay for the two-wheeler?
Even if a two wheeler loan interest rate is lower, some lenders may charge a heavy processing fee, prepayment, late charges, etc. This may increase the final amount that you have to pay for a two-wheeler. Therefore, it is best to use an EMI calculator to find out what final amount needs to be paid at your end.
4. What is the down payment and duration of the loan?
The applicants must understand that the online bike loan can be repaid by regular EMI option for certain time duration. The smart financial planning is not to agree with a higher EMI amount that may add financial pressure on your regular budget. Meanwhile, you must also refrain from opting for the longest tenure, as it increases the interest payable on your loan amount.
5. What documents are needed for two-wheeler loan?
You need to submit certain documents to get your loan sanctioned. While the borrower’s credit score determines their creditworthiness, lenders require certain proofs and assurance from the applicant or borrower to ensure he/she is financially strong to pay off their debts on time.
Here is a list of documents that the applicants need to submit:
KYC documents to prove a person’s identity, address and age
Proof of income, such as income tax return, salary slip and record of financial reports
Employment stability proof
Ownership proof or business stability proof
If you keep the documents mentioned above handy at the time of loan application procedure, you can get your loan sanctioned easily without wasting any time.