Dealing with traffic congestion has become a part of daily life. Given the situation, not everyone can compromise on their professional commitments because they got stuck in a traffic jam. It is why buying a two-wheeler is a great idea. 

They help you cut through traffic, saving precious time and, in the long run, save you a lot of money in terms of maintenance. To prevent you from dipping into your savings to purchase a two-wheeler bike, lenders are now offering customer-friendly loans. 

However, there are some points you need to keep in mind:

How much do you want to borrow?

There are many lenders available in the market who are offering two-wheeler loans on EMI online. But this doesn’t mean that you borrow more than you need. Over-borrowing can cause financial burdens and shoot up your interest rates. This can also result in higher EMIs or you defaulting on the loan. So, borrow when you need to buy your dream bike.

Carefully choose a loan tenure

Going for a short loan tenure will mean your EMIs are high, but your payable interest is low. On the other hand, a longer tenure can keep your EMIs stable, affordable and you will be less likely to default on your repayments. Select a tenure that fits your budget and doesn’t result in a burden. 

Is the loan secured or unsecured?

A secured loan fetches a lower interest rate, resulting in an affordable EMI amount. However, in India, most lenders offering bike loans offer unsecured loans with high interest. This means the interest rate will likely be high if your credit score or documentation is not in your favour. 

Create a repayment plan and stick to it

While availing of a loan can be easy, the repayment is not. Discuss and create a repayment plan with your lender by choosing a comfortable tenure. This will keep you on track, away from any financial burden, allowing you to enjoy your bike. Consider using a two-wheeler loan calculator to see what your monthly expenses will look like. See if you can opt for flexible EMIs and grace periods so that you never default on your loan. You can even choose an auto-debit option for your EMI for easy repayment.      

Your credit score is fundamental.

Your CIBIL or credit score plays one of the most critical roles in getting you a loan. It shows your capability of repaying the loan. Lenders tend to trust people with good credit scores and sometimes offer longer tenures or lesser interest rates. Even if your credit score is low, you can get a loan for your dream bike, but you may have to face the brunt of a higher interest rate.

Bargain for best interest rates

The loans market is so saturated that a single online search will get you hundreds of results for a two-wheeler loan. However, not every loan will be suitable for you. The interest rate you choose for your two-wheeler loan will decide the final amount you have to repay after taking the loan. So, shop around for the best deal on interest rates. Consult with lenders and negotiate the rates to get what is suitable for you. 

First, clean your records. Second, shop and negotiate for a lower interest rate. Last, enjoy your new bike!


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