You’ve seen your friend’s shiny new bike, you have ridden it, you loved the feeling of being able to ride so fast with the wind in your hair, now you want a bike of your own because you can’t get your mind off of it, but you don’t have enough funds to buy one. You are facing a dilemma and looking for options. One of the best options you should consider right away states that you can take a two wheeler loan from a financial organization. Below I have listed a couple of things that you should know before taking a loan:
– You should get the best interest rates possible. A simple online research will give you some results for two-wheeler loans. Interest rates will definitely vary from bank to bank. It would be a good plan to ask around with your family members and your friends as well, gather as much information as you can and then make a well-informed decision. Your income statement is essential, along with your current assets and also your credit score, which plays a pivotal role in the loan being sanctioned to you. Having the perfect track record will give you the power to negotiate and reduce some interest rates. Some automobile manufacturers can get you a deal so sweet that it can include no processing fees, free insurances and even free accessories for the vehicle.
– Just because a loan is available to you, it is never a good idea to over-borrow. Make sure you can adequately make EMI payments every month. Borrowing more than you need will increase the EMI monthly payments, and that will end up pulling you down. If you are not able to pay, it can cost you your vehicle, because the bank will seize it if the money is not paid back.
– You should have a proper re-payment plan. Make a plan before you even borrow the money and stick to the plan every month. Opt for a system that can allow flexible EMIs and also some grace periods so that you will never be able to default. It would be a good idea to set up some instructions with your bank so that you never forget an EMI.
– Once a vehicle has caught your eye, it is indeed very hard to wait. Once you have submitted your documents, the loan usually does not take more than 10-15 days to get sanctioned to you, almost as quickly as an instant Christmas loan. Most banks will directly pay for the vehicle themselves on your behalf; this will surely save you a lot of time. Make sure you only use the vehicle for intended purposes; you also shouldn’t make any unauthorized modifications to the vehicle because that may void the warranty and the insurance.