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Things to consider before applying for a motorcycle loan

applying for a motorcycle loan

The price of motorcycles in India has skyrocketed. Even a 125cc motorcycle now costs more than Rs 1 Lakh! Also, nowadays, young riders are shifting to e-Bikes, which may cost more upfront, but in the long term, it helps save on fuel spending. 

While many can afford a down payment, many prefer to take a Bike Loan to fund their two-wheeler purchase. However, before applying for an e-Bike Loan, you should keep the following things in mind.

Look at multiple loan schemes.

It is best to look at loan schemes offered by lenders before settling for one. This simple step can allow you to compare and finalise a loan with the lowest interest rates. This keeps your loan costs down and helps you save long-term. It also enables you to you’re your monthly budget. 

It is as simple as that.

Ensure you meet the eligibility criteria of the lender.

It is best to ensure you meet the eligibility criteria set by your preferred lender. If you apply without checking the eligibility, the application might get rejected. Most of the lenders in India have similar eligibility criteria for e-Bike Loans. However, some lenders may add a few unique requirements to their list of eligibility criteria. Hence, ensure you meet the eligibility requirements of the lender. 

Use the two-wheeler loan calculator on the lender’s website.

You should always use the two-wheeler loan calculator available on the website of top lending institutions. The calculator lets you learn about the tentative EMI amount you will pay on the borrowed sum. Knowing the tentative EMI on the borrowed sum is a crucial step. Often, people fail to pay EMIs on time, and a single untimely EMI payment can entail penalties from the lender. On top of this, untimely payments can also bring down the credit score. Furthermore, an EMI calculator lets you understand whether you can afford an e-Bike Loan. If you find that you cannot afford to repay the loan, you should wait until you can.

Borrow the sum you need and not more than that!

If you are cash-strapped, buying an expensive e-Bike through a loan doesn’t make sense. It is best to wait till you can afford to repay. Only then apply for an e-Bike Loan.

It is not recommended to borrow large sums of money from a lender without assessing your budget. The reason is simple. An interest rate backs every EMI, and missing any EMI can result in a penalty, affecting your credit score. Furthermore, a large sum of borrowed money would readily entail hefty EMIs. In a nutshell, the more you borrow, the more you will have to repay. So borrow wisely. 

Choose a loan scheme that offers additional benefits

Several lenders in India offer additional benefits with their motorcycle loans. For instance, if a lender provides motorcycle loans with bike insurance as an add-on or zero processing fee, it is best to go for it. The reason is simple. Bike loans with additional benefits can help you save a lot of money!

Now that you know the factors to be considered before taking an e-Bike Loan, it’s time to apply with a reliable lender and bring home your dream motorcycle.

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