5 things to know before you get a two-wheeler loan
So, you have decided to buy a two-wheeler. Is this your first two-wheeler? Do you already feel a palpable sense of excitement? Are you looking forward to skipping the serpentine bus queues, and bidding goodbye to surcharges on cab bookings? Well, owning a two-wheeler opens up a whole new world of convenience.
If you are looking for a loan to buy a two-wheeler, here are the top five things to know:
1. Get the best interest rates
A simple online search throws up instant results for two-wheeler loans. However, interest rates vary from lender to lender. Therefore, take your time, talk to different lenders, and compare the interest rates and overall costs.
Your income statement, currents assets and liabilities, and your credit score (if you have borrowed before) are the factors that play an important role in accessing your eligibility. On the other hand, having an excellent track-record gives you the power to negotiate the interest rates.
Also, make the most of special loan offers and discounts offered by automobile manufacturers as well as lenders. Zero processing fees, free insurance, and free accessories are some of the popular offers.
2. Maximize loan amount
Borrowing the maximum on-road price can hand you 80% (or even more) of the money required to buy your dream two-wheeler. Since you are going through all the paperwork and paying the loan processing fees, it is smarter to maximize the loan amount. This gives you the flexibility to manage your other financial commitments with ease.
3. Do not over-borrow
However, just because a loan is available, don't over-borrow. Calculate the EMI you can comfortably pay each month. Over-borrowing will shoot up your monthly EMIs and can derail your overall finances and budget. Worse, you might not be able to pay, and default. This can further dampen your chances for availing future credit.
4. Have a re-payment plan
Discuss and understand the re-payment plan. Adhere to the same so that you can continue to enjoy the benefits the vehicle brings to you. Opt for a system that allows you flexible EMIs and grace periods, so that you never default. Setting up standing instructions for your bank, or providing a bank mandate to the lender ensures that you never forget an EMI.
5. Quick processing
Once you have your eyes set on a vehicle, is it hard to wait! Talk to your lender about the Turn-Around-Time for loan disbursement. Once you submit all the documents, the loan should not take more than 10 days. Most lenders directly pay the two-wheeler dealer on your behalf. This also helps save time.
Lastly, ensure that you use the vehicle only for the intended purpose. Do not make any unauthorized modifications to the vehicle. This might void the insurance.
Contact Reliance Commercial Finance today for a car loan, two-wheeler loan, or auto finance. It's time to vroom!