Loans act as a gateway to fund financial emergencies or achieve goals such as owning a home, buying a vehicle, etc. Apart from the loan’s interest rate, tenure, and amount, another crucial parameter is the flexibility and availability of different repayment options.
When it comes to bike loans, gold loans, home loans, etc., there are different payment plans offered by many lenders. Given that two-wheelers are one of the most common transportation modes in India , knowing the bike loan repayment options is important.
But before jumping onto repayment plans and loan payment facility, let us have a quick look at a guide to availing of a bike loan:
Key Features of a Bike Loan
Although many lenders offer two-wheeler loans, we, at Shriram City Union Finance, strive to provide the best and smooth bike loan experience. Have a look at our bike loan product and its unique features here: https://www.shriramcity.in/two-wheeler-loan.
Bike Loan Repayment Options
Lenders mostly provide the equated monthly installment (EMI) option to repay the bike loan. EMIs include both the principal as well as the interest component of the loan. However, to make it easier, convenient, and hassle-free, some lenders tend to offer two EMI repayment plans for borrowers as per their income and cash flow.
How to Choose the Right Bike Loan EMI?
While wondering how to repay a loan, deciding upon the suitable EMI is vital to avoid defaulting or relaying loan EMIs and have a smooth repayment experience. Here are 3 key factors to keep in mind while choosing the EMI of your bike loan:
At Shriram City Union Finance, we strive to provide the best services to our existing and prospective customers during the loan process. To choose the suitable EMI for your wheeler loan, you can use our online EMI calculator tool https://www.shriramcity.in/emi-calculator. At every step of the loan process, we are dedicated to being transparent and finding all possible ways to assist you.
Different Payment Plans for Other Loans
Besides bike loans, there are loan payment plans for gold loans, home loans, etc., which are offered by some lenders. Let us have a quick look at these repayment options:
It involves repaying the interest amount every month as per the loan’s EMI schedule. The principal amount is repaid only on maturity of the loan, implying that the borrower is liable to pay just the interest component of the loan during its tenure. This type of repayment option is suitable for those who lack adequate regular cash flow or income to service both the interest and principal component of the loan during tenure.
When thinking of how to repay a gold loan, the most flexible and unique repayment option, especially for gold loan is the bullet repayment option. In this, the borrower is allowed to repay both the principal and interest component as a lump sum at the end of the loan’s tenure. Hence, no need to pay any EMI during tenure.
This option involves payment of the interest component upfront at the time of loan sanctioning, and the principal component is repaid at the end of the loan tenure. This repayment option can suit those borrowers who can make the upfront interest payment but wish to opt for a non-EMI route to pay principal at the end of tenure.
Summing it up, it’s crucial for borrowers availing not only bike loans but also gold loan, home loan, and business loan to carefully choose the most suitable repayment plan. Feel free to contact Shriram City Union Finance for any queries. Contact us at https://www.shriramcity.in/contact-us. We will be eager to assist you in every possible way before and after availing loan or any other service.