Everything You Should Know About Two Wheeler LoanMarch 22, 2022
Travelling to your workplace or back home through your city’s public transport system may be time consuming and uncomfortable. There’s also the issue of travelling in crowded spaces, which is certainly not advisable following the pandemic. Additionally, with fuel prices rising, the cost of taking cabs to and from your workplace will also have no doubt gone up.
The easiest way to work around these issues is to use your own vehicle for transit. And a two wheeler can be comfortable, affordable as well as quick to get you around the city. However, if you are still on the fence about buying your own vehicle because of the steep initial cost, a bike loan or a two wheeler loan can be very useful here.
What is a two wheeler loan?
A two wheeler loan, also often referred to as a bike loan, is a financial product where an individual can borrow a certain amount of money from a bank or a financial institution in order to purchase a two wheeler like a bike or a scooter. The amount borrowed can be repaid over the repayment tenure chosen by the borrower. Generally, banks and other financial institutions offer a range of repayment tenures to choose from, so you can select the period that will best suit your financial situation.
The lender will also charge a rate of interest on the amount borrowed, and you will have to repay the loan along with interest through monthly EMIs. You can use a bike EMI calculator to get a better idea of the amount you will have to pay each month.
What are the advantages of a two wheeler loan?
There are many benefits of applying for a two wheeler loan to fund your purchase of a bike or a scooter. Check out the top advantages below.
- There is minimal paperwork involved when you apply for a two wheeler loan online.
- You can compare your options online to avail a two wheeler loan at affordable rates of interest.
- A two wheeler loan makes it possible for you to fulfil your dream of owning a bike or a scooter without having to erode your savings.
- By repaying your two wheeler loan in a timely manner, you can build a good credit history and boost your credit score.
Thing to keep in mind before you avail a two wheeler loan
Before you avail a two wheeler loan, there are some things you need to keep in mind. That can make it easier for you to avail a two wheeler loan that is right for you. Here are some key considerations.
- Ensure that you check the rate of interest on your loan before applying for the same.
- Check for any additional charges such as processing fees, prepayment charges or foreclosure charges.
- Ensure that you borrow within your means.
- Check your EMIs using a bike EMI calculator and have a proper repayment plan in place.
Now that you know the essential things about a two wheeler loan, you can easily borrow the requisite funds from the bank or the financial institution of your choice online. Ensure that you pay your EMIs promptly to avoid additional penalties and/or interest on the unpaid amount.