A two wheeler gives you the freedom of commuting anywhere easily. It is one of the most trusted modes for commuting. Once you have decided which two wheeler you want to buy and that you need a loan for its purchase, the next step is to get the best deal on two wheeler loans. Whether it is a two wheeler loan or any other type of loan, you need to compare the deals you get from different lenders. For this comparison, we have listed a few parameters which you should consider before you apply for the loan.
1. The Amount of the Loan
Every bank or NBFC that provides a two wheeler loan will have a minimum and maximum limit for borrowing. You need to check whether the bank or NBFC will provide a loan for the amount that you need.
2. Down Payment
The down payment for the loan depends on whether your loan is secured or unsecured. Some lenders offer 100% financing for your two wheeler. Whereas some lenders will finance 80% to 90% of your two wheeler purchase. If this is the case, then you would only need to pay the remaining amount as a down payment.
3. Loan Term
The term of the loan is basically the tenure of your loan. This is the time period for which you will take a loan and repay the same. Every lender has a specific tenure range based on which they provide a loan. You can use the two wheeler loan EMI calculator and check if you can pay the monthly EMIs based on the tenure.
4. Two Wheeler Loan Interest Rate
Two wheeler loan interest rate is a defining factor of a two wheeler loan. Lenders offer two types of interest rates; Fixed and Variable. Fixed interest rate is the one which remains constant throughout your loan repayment period. A variable or floating interest rate is the one which keeps fluctuating according to the market index.
5. Additional Fees & Charges
Other than the nominal processing fee, a lender that provides a bike loan might also have other additional fees such as Late Payment Fees, Bounce fees, prepayment charges etc. Every lender will have its own set of fees and charges which you need to know about before you apply for the loan.
6. Prepayments or Extra Repayments
If there is a sudden inflow of money, you can use it to prepay your loan or make some extra repayments. Discuss this beforehand with the lenders.
Make sure you choose the best deal offered to you after thorough research. This is where comparing different two wheeler loans from the lender is helpful.