- Why Should You Take a Two-Wheeler?
- Types of Two-Wheeler Loans
- Advantages of a Two-Wheeler Loan
- Things to Keep in Mind before Applying for a Two-Wheeler Loan
Are you fed up with keeping up with the bus schedule or those ridiculous surge fares that cabs charge? Or not finding the autos or taxis exactly when you need them the most? Why not take a two-wheeler and eliminate all those hassles? Luckily, owning a two-wheeler is not as far-fetched as it may have seemed a couple of years ago. Yes, they all may come with a hefty price tag, but a two-wheeler loan makes it easy to own one.
First things first, you may not be quite convinced to take a two-wheeler if you are used to public transport. We also have heard many times that two-wheelers are bad investments.
Well, here are some facts that may try to convince you why you should apply for a two-wheeler loan and buy one soon:
Pretty sure that you agree with us now that a two-wheeler makes a great investment.
So, what’s the next step? Especially if you cannot afford to pay for the vehicle at once? Well, you apply for a two-wheeler loan.
Primarily, there are two types of bike loan –
1. Secured Loan: This is a type of loan that you get against the security of a collateral. It can be a piece of your land, home, or valuables like gold. Most lenders secure the two-wheeler loan against the bike. This means that the bike itself becomes the collateral. If you cannot repay your loan, the lender has a legal right to seize your bike. If you do not want the bike as collateral, put up some other asset instead.
2. Unsecured Loan: If you can take a guess, this type of loan is the opposite of secured loans. These loans are not secured against any asset or collateral. These are basically like personal loans that you can use to buy a bike.
Here are 4 advantages and benefits of applying for a two-wheeler loan:
Before applying for a two-wheeler loan , keep the following things in mind:
Different lenders will offer different interest rates for the loan. Compare the interest rates and don’t jump into applying for the first loan you see. Shop around a little bit. A simple online search will show you results for the types of loans for bikes and interest rates, offered by different lenders.
Factors like your credit score, income, liabilities, age, residential stability, and current assets, will play an important role in determining your eligibility for the loan. If you have a poor credit score, you will be subjected to a higher interest rate. However, if you have an excellent track record of paying the bills on time and a high credit score, you can negotiate the interest rate with the lender.
Another great idea would be to consider special loan offers offered by the bike companies and lenders. Some popular offers include zero processing fees, free accessories, and even free insurance.
Make sure you can afford the two-wheeler loan. Do not over-borrow just because a loan is available to you. When you apply for a loan, calculate the EMI, and determine an amount that you can comfortably pay every month.
When you over-borrow, your monthly EMIs will go up, and it may disturb your monthly budget. Worse, you won’t be able to pay your loan back and default. This will reflect poorly on your credit score and make it difficult for you to apply for future loans.
Before you even apply for the loan, you need to have a solid plan of how you will pay the loan back. Discuss with your lender and understand all your options. Once you get the loan of your preference, at an interest rate that works for you, stick to the repayment plan.
Ideally, choose a system that allows you flexible EMIs and grace periods. This will ensure that you don’t default on your monthly payments.
The troubles associated risks due to covid-19 pandemic of public transport will be a thing of the past with a two-wheeler. Apply for a two-wheeler loan with Shriram City Union Finance Ltd and experience a smooth and hassle-free loan application experience. Choose a two-wheeler loan and become a proud owner of a new bike.