If you have several doubts and queries related to the 2-wheeler loan, here we have taken the most common doubts and questions regarding the bike loan for you.
When should I take a bike loan?
If you have enough fund to buy the bike
yourself, you should not take a loan and pay for the interest unnecessarily.
But if you do not have that kind of money, then you must apply for the loan and
get easy finance.
How much loan will I get?
Most of the lenders offer you 2-wheeler
loans up to around 85 to 90 per cent of the value of the vehicle. Some banks
may provide 100 per cent amount too. Many times, you need to arrange some part
of the money on your own. The loan limit in some banks is up to 10 lacks.
How to apply for a two-wheeler loan?
There are different ways to apply for a bike
loan:
•
You can directly apply by visiting the branch office of one of the banks
that can provide you bike loan.
•
You can also apply online by opening the website of the bank.
•
Another good option is to apply for the bike loan at the time of
purchasing the bike.
What will my bike loan cover?
Most of the two-wheeler finance
cover the cost of accessories, insurance, and registration charges for the
bike. The banks may also offer other lucrative deals, in case they have a
collaboration with a two-wheeler brand.
What is the ideal tenure for the bike
loan?
You can choose the mandate according to
your choice. A longer tenure means a lesser EMI amount, but you will have to be
under the debt for a long time. Shorter tenures mean higher EMIs, but you will
finish your loan faster.
Should I go for a floating interest rate
or a fixed interest rate?
Many banks provide both the options of a
fixed interest rate and a floating interest rate. While the former option means
that the rate of interest will remain fixed, irrespective of changes in the
market rate, the floating rate interest is subject to change with the change in
the market rate. The people prefer taking floating rates as they have a lower
interest rate as compared to the fixed rates model.
Should I consider a prepayment of the
loan?
Prepayment is when you pay multiple EMIs
together in advance, before the closure. Whenever you prepay a part of the
loan, it will reduce your principal amount and interest cost as well. So,
prepaying your loan is a good thing to do as it saves your money.
