Purchasing a bike is a dream and an achievement for many people. People often save the required amount to fund the purchase of their bikes. However, it can take a long time. The price of the bike might increase during this period. Taking a bike loan is a great way to finance the purchase of a bike. 

You don’t have to rely on savings or bear a substantial financial load at once. Instead, a two-wheeler loan allows you to repay the amount using affordable EMIs. However, some critical factors must be considered before opting for bike finance. Read on to learn more about it.

Key factors to consider for two-wheeler loans

Here are some crucial factors to consider before opting for a bike loan. 

• Find out the credit score 

Before applying for a bike loan, you must check your credit score. An excellent credit score (over 750 points) can help you get better terms and lower loan interest rates. On the other hand, if your credit score is below the required points, you must increase it before opting for the loan.

• Loan eligibility criteria 

You must check your lender’s two-wheeler loan eligibility criteria before opting for the loan. It is essential to meet the minimum eligibility requirements listed by the financial institution.

• Choose a suitable loan tenure and EMI

Every loan comes with a repayment obligation. You have the flexibility to repay the amount through affordable EMIs. However, the EMIs can vary based on the principal amount, interest rate, and loan tenure. Therefore, it is also crucial to choose a suitable loan tenure. 

Must Read: How to Calculate EMI with Two Wheeler Loan Calculator