You may be a fresher who just landed a new job, or you may be a family guy with responsibilities; you may be living in a small town with no traffic or in a city with bumper-to-bumper traffic, a two-wheeler is an all-purpose, all-weather mode of transport for most Indians.
To meet the demand of the densely populated country like India, the two-wheeler market is offering best deals and best financing options to anyone and everyone across all income groups and age groups.
Before you decide to buy a two-wheeler, consider these 4 factors:
- Choose the Financing option that best fits your needs
In their attempt to meet the requirement of each individual looking for vehicle finance, lenders and banks have created multiple financial tools to help individuals purchase a two-wheeler.
Financial tools, such as two-wheeler loan and personal loan are the most popular two-wheeler finance options.
Some tips on choosing the right financial tool to buy a bike
- Make a list of your requirements.
- Assess your financial situation.
- Estimate the amount you would like to spend on this purchase.
- Narrow down the best from the available two-wheeler loan options.
- Compare the interest rates, EMI schemes, repayment tenure, and overall costs.
- Take advantage of additional offers and discounts
It’s clever to buy your dream two-wheeler during the festive season. Many dealerships and two-wheeler loan lenders generally launch zero processing fee, free gold coin, free insurance, free accessories, etc. offers during festivals.
- Borrow only what you need
Assess your financial standing and check how much money you can afford to spend on the purchase. The best way to get this done is by going through the following:
- Check your monthly income
- Keep some money aside for emergencies
- Ask yourself how much of your monthly income can you use to pay off the loan
- How long you can afford to keep paying off the loan
- Calculate the EMI that you can easily pay every month. This gives you an idea of how much money from your salary you can set aside for repayment of the two-wheeler loan. Try our EMI calculator.
Just because the loan is available to you, curb yourself from over-borrowing.
Over-borrowing shoots up your monthly EMIs and the increased EMIs can:
- Derail your budget.
- Increase your chances of defaulting on payments.
- Missing payments can reduce your chances of getting credit in the future.
- Plan your repayment in advance
If you drag the two-wheeler loan for too long, you’ll end up losing more money. It is important that you understand that the sooner you clear your debt the better it is for you in the long run.
- Go for a plan that includes flexible EMIs, so that you never miss an EMI.
- Set up standing instruction for your bank.
- If you are expected to make a down payment, try to pay a high amount so that your repayment amount and tenure is less.
So, you may have set eyes on a two-wheeler, and you may have done all the pre-purchase research on the available financing options. Now, it’s time to get your dream bike home.
Apply for a personal loan for a two-wheeler with MoneyTap and get home the bike of your dreams. Download the app now!