bike loan

What Should You Consider Before Opting for a Two-wheeler Loan?

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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

Why Choose a Bike Loan Over Cash Purchase?

Purchasing a new bike could be need-based for some and an aspiration for others. The convenience of daily commute along with savings on fuel costs is unmatched. In addition, two-wheelers can be a lifesaver during traffic jams. Many people purchase their new bikes with cash or debit cards. However, it’s not a prudent financial choice. Instead, opting for a bike or two-wheeler loan is recommended. Finding the right lender can help you choose the best two-wheeler loan in the market.

What are two-wheeler loans? 

Two-wheeler loans are unsecured credit products that help individuals purchase a two-wheeler, such as a bike or a scooter. The loan can be repaid through affordable monthly instalments as per the agreement with the lending institution. The 2-wheeler loan interest rate offered by reputed lending institutions like Fullerton India is affordable. However, the exact interest rate is contingent on your credit score, income, and repayment track record. 

Benefits of choosing a bike loan over cash purchase 

Most people might find the idea of choosing a bike loan over a cash purchase absurd as there is a cost of borrowing involved, i.e., the interest rate. However, you will be surprised to learn the benefits of choosing a bike loan. Here are some crucial ones.

  • A bike loan can help you build a good credit history and make you eligible for high-value loans. 
  • You don’t have to arrange all the funds; therefore, the financial burden is lower.
  • Bike loans can help you purchase the dream bike even if it’s currently beyond your budget. 
  • In addition, bike loans make you eligible for attractive discount offers from lenders. 

Also Read: Know HowTwo-Wheeler Loan EMI Calculator can help you to calculate EMI

What are the Factors Affecting Interest Rate on a Two-Wheeler Loan?

revolt-rv400-electric-bike

For many people, purchasing a two-wheeler is an exciting and necessary investment. While having a two-wheeler is exciting, it is essential to assess the costs before becoming overwhelmed by the process. 

2 wheeler loan interest rate are influenced by a variety of factors, and understanding these elements might help borrowers get a better deal.

  1. Credit Score

A credit score is used by a lender to determine whether or not a borrower is creditworthy. 

A better credit score tells the lender that the borrower has a good track record with money and is more likely to pay back the loan on time, lowering the interest rate on the bike loan. Apply for a bike loan, once you have checked your credit score.  

  1. Income

The individual’s income is one of the essential elements that lenders consider when setting the two-wheeler loan interest rate.

As a result, borrowers with little income may need to look for a loan with a higher interest rate. Borrowers with higher incomes, on the other hand, often get a lower interest rate.

  1. Age

The borrower’s age impacts the interest rates for bike loans. Because these loans have a longer repayment duration, younger applicants will have a lower interest rate, and vice versa.

  1. Loan tenure

The loan repayment period also influences the rate of interest on a two-wheeler/bike loan. If the loan term is shorter, lenders will charge a higher interest rate and vice versa.

With Fullerton India, getting a two-wheeler loan is straightforward. The process is online with fast approval, minimum documentation, attractive interest rates, and flexible repayment tenures. 

Further, you can calculate the EMI payments through the two-wheeler EMI calculator to know the loan’s affordability.

Must Read: Is No Cost EMI Available on Bike Loan?

5 Perks of Funding Your Purchase with a Two Wheeler Loan

revolt-rv400-electric-bike

Riding a two wheeler helps people catch up to the fast-tracked pace of today’s world. It eases the way and increases the speed at which an individual can travel from one place to the other. However, when it comes to purchasing a two wheeler, many people prefer delaying their purchase rather than spending their savings. Thanks to the easy availability of two wheeler loans, there is no longer a need to do so. 

Prospective borrowers can get two wheeler loan online approval within minutes and instantly fund their purchase. Find the five perks of funding bike purchase with a two wheeler loan.

5 Perks of two wheeler loan:

  • Competitive Interest Rates

Lenders’ attractive interest rates make EMIs affordable and loan repayment more manageable.

  • High-Value Financing

Depending on the eligibility and credit score, some borrowers may avail zero down payment bike loan from lenders, with which they can fund 100% of the bike’s value with a two wheeler loan.

  • Easy Eligibility

Lenders have simple eligibility conditions that almost everyone can fulfil. These include the borrower’s age, income, employment, and credit score. Anyone eligible for a bike loan can apply online and get fast approval.

  • Flexible Repayment

Flexible repayment terms allow borrowers to select their EMI amount according to their repayment capacity. This helps them repay their EMIs conveniently and pay off their loan in time.

  • Instant Disbursal

If eligible, the borrowers need to get their documents verified, after which they get two wheeler loan online approval and receive instant funds directly into their bank account.

These perks of two wheeler loans make the bike buying experience convenient and seamless for the borrowers. Moreover, online portals and apps let them apply for a bike loan online without any hassle.

Additional Read: Purchase Bike of your Dreams in this Festive Season

How Can One Buy A Bike Without Down payment?

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What Is Down payment?

Down payment of the money is the upfront payment the person availing loan needs to pay to purchase the bike. Down payment requires you to pay some cash to purchase the vehicle while the lender covers 80 to 90% of the loan.

At the same time, lenders offer zero down payment bike loans where the two-wheeler will be completely financed by the lender without having to pay any down payment. This is a boon when you don’t have sufficient cash liquidity to pay in advance for the vehicle. Additionally, you get the freedom of choosing your favourite bike without having to worry about arranging a lump sum.

Factors Affecting Two-Wheeler Down Payment

  • Cost of the Bike
  • Your Repayment Capacity
  • Credit Scores

Check your approximate monthly instalments using the Bike loan EMI calculator to determine if you will be comfortable paying off the loan amount without incurring any financial burden

You can apply for the two-wheeler loan is the lenders’ online app in four easy steps:

  1. Fill in the online application
  2. Upload required documents to confirm eligibility
  3. Once the documents are digitally verified, the lender will contact you to complete the terms and conditions.
  4. Once the process is done, the loan will be sanctioned, and the funds will be disbursed.

We provide two-wheeler loans with zero down payment, allowing you to purchase your bike without worrying about arranging a cash lump sum. Once your loan is authorised, the lender will calculate your EMI depending on the interest rate and loan period. We offer the lowest bike loan interest rates, between 8% and 28% per annum.

Must Read: Benefits of Using an EMI Calculator Beforehand for a Bike Loan

Benefits of Using an EMI Calculator Beforehand for a Bike Loan

Harley-DavidsonÕs new electric bike, LiveWire, is shown in this handout photo

When availing of a bike loan, the sanction period is always a concern, especially if you need the loan urgently. So, what can you do? 

You can use a bike loan calculator. The calculator ensures the loan amount, interest, and tenure you are proposing is valid in conjunction with your finances. Hence, your sanction period may decrease. The following are a few benefits of using it beforehand. 

Benefits of Using a Bike Loan EMI Calculator:

  • Knowing Your Credit Limit

When applying for a loan, people tend to extend their line of credit. But by using an EMI calculator, you know how much you can borrow based on your income, credit score, etc. 

  • Helps Choose a Suitable Tenure

For some people, shorter loan tenure is better, and for others, longer tenure is better. Using a bike loan EMI calculator allows you to see variations of the loan based on the tenure, interest rate, and loan amount you choose. Thus, you get insight into the different options and choose which one is best suited for you.

  • Helps Make an Informed Choice

Loan EMI calculators will help you determine what is ideal for you. Therefore, when speaking to lenders about the loan, you will be aware of what you are looking for and compare all possible options with your ideal conditions in mind. 

Use Fullerton India’s wide range of calculators and financially plan your way to a successful future, knowing your lender is reliable, offering competitive interest rates and flexible repayment schedules tailored to your needs!

Must Read: Major Factor to Consider while choosing a Bike Loan

Why Should You Apply For A Two Wheeler Loan?

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A two-wheeler loan is the best way to buy your favourite bike without touching your savings. It is the best option to manage your finances when you have no other way. The best part about a two wheeler loan is that you can get up to 100% of the bike’s on-road price as a loan. It means that you can avail of a zero down payment bike loan for yourself, depending on your age, income, and credit history. 

Here are some of the reasons you should opt for a 2 wheeler loan: 

  • You can avail of an affordable interest rate, depending on your income, credit score, current financial obligations, etc. Some lenders even offer as low as 1%. 
  • It is a great way to reduce the financial burden on your shoulders. Keep in mind to apply for a lower loan amount as it significantly reduces the interest rate. 
  • If you make on-time repayments of the loan amount with interest, it will positively reflect on your credit report, increasing your credit score. A healthy credit score ensures approval of loans in the future. 
  • There is flexible loan tenure that ranges between 12 to 48 months. So, it allows you to choose a loan tenure based on your needs and preferences. It is worth noting that a longer loan tenure may lower your EMI but increases interest in the long run. 
  • A 2  wheeler loan comes with minimum eligibility requirements. You will need to prove that you are within the age bracket set by your lender. You must be either a salaried person in a company or self-employed. Also, you must show a minimum income based on your lender’s policy. 
  • You do not need to stand in long queues to apply for a loan. You can access funds to buy your dream bike from the comfort of your home, with just a few clicks on your computer.

Additional Read: Top Benefits of Applying for Bike Loan Online in India

Things To Consider To Get The Best Two-wheeler Loan

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Bike finance is the best option to buy your dream bike without touching your savings or investments. You can secure up to 100% of the vehicle’s on-road price as a loan, and avail of an interest rate as low as 1%. However, it is worth noting that the loan amount and the interest rate depend on the eligibility factors, such as age, income, credit score, and current financial obligations. Before opting for bike finance, you must follow the underlying things to get the best deal available: 

Things To Consider To Get The Best Two-wheeler Loan 

  • Eligibility criteria

Before applying for a loan, you will find out your preferred lender’s eligibility criteria. The requirements are usually based on your age, income, employment type, credit history, current financial obligations, etc.  

  • Loan amount

Assess your needs in advance and determine how much you can get as a loan on your repayment capacity. You can use a two-wheeler loan calculator to determine how much you can afford to pay in EMIs and apply for a loan accordingly. 

  • Loan application process

 Not all lenders offer the same application process. So, while looking for a two-wheeler loan, you must choose a lender that offers a convenient loan application process. Your lender must offer an easy and quick loan with minimum documentation.  

  • Repayment tenure

A two-wheeler loan tenure usually ranges between 12 to 48 months. However, it is worth noting that a higher loan tenure can cost you more in interest in the long run.   

  • Down payment

If you make a higher down payment, your loan amount will decrease. A decreased loan amount always ensures a lower interest rate, therefore, reducing the burden from your shoulder.

Keep these points in mind when applying for your next two-wheeler loan to make it even more convenient.

Additional Read: What is the Ideal Tenure For Your Two Wheeler Loan?

Why Take A Two Wheeler Loan Online?

Are you thinking of buying a two-wheeler? You must be wondering where to get the funds. Don’t worry if you do not have enough savings to buy your dream bike. A two-wheeler loan will have your back.

Several financial institutes are ready to offer a bike loan at affordable interest rates. You require minimum documents. Moreover, you can apply for a loan online without having to go anywhere.

Benefits Of Taking A Bike Loan Online

  1. Greater Number Of Options

Applying for a two-wheeler loan online gives you plenty of options. You can choose one according to your convenience and requirements. It will allow you to compare the features of different loans and make an informed decision.

  1. It Saves Your Time

Forget running about with your documents to get your loan approved. Take your smartphone and apply for a bike loan with a few clicks. It will save your precious time and energy.

  1. It Will Help Improve Your Credit Score

Bike loans are easy to repay. Moreover, it will improve your credit score. That will help you get loans easily in the future. When you take a loan of a higher amount, your lender will ask for your credit score. If you have repaid your earlier loans on time, it will make a good impression.

You can use a bike loan calculator to calculate your EMI. It will give you an idea about the amount you need to pay every month for repaying the loan.

Final Word

Fullerton India provides two-wheeler loans at competitive interest rates. Moreover, you will get instant approval of your loans. So, why are you waiting? Go ahead and get your dream bike.

Must Read: How to Get an Instant Approval on Two Wheeler Loan Online?

Bike Loan Vs Buying Bike In Cash- Which one is Better?

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After the covid-19 pandemic, owning a vehicle has become a necessity rather than a luxury. In such situations, buying a two-wheeler is the best option that one can choose. It not only keeps you safe but also ensures you are not stuck in any traffic.

Are you planning to buy a bike, two options are available? You can either buy the bike with your savings or take a bike loan from a lender.

Advantages of a Bike Loan:

Exhausting your savings to purchase a two-wheeler, might not be the best option. Instead opting for a bike loan offers various advantages:

  1. Bike loan interest rate: Lenders offer a low-interest rate on bike loans, making the entire purchasing experience convenient for the borrower. The rate of interest can also be negotiated based on your income, price of the two-wheeler, credit score and many more.

  2. Quick Approval of Loans: With the digital age, the entire bike loan process has become simple and quick. You can apply for a loan online and get the amount in your bank account with just a few clicks.

  3. Reduce the Burden on Your Budget: The burden of exhausting your savings is reduced, which can be later used for emergencies. You can instead pay monthly instilments through your income and enjoy your bike.

  4. Buy any bike: Your savings might put a cap on the bike price you want to buy, but not a bike loan. At low bike loan interest, you can buy any bike of your choice.

Conclusion

Apart from the above benefits, a bike loan also offers extra benefits like insurance cover. You can also purchase your bike accessories with the loan amount. All you need to make sure of is to choose the right lender for the bike loan, which offers you the best loan terms.

Additional Read: Things to consider before choosing a two wheeler loan

Best Strategies for Make the Most of your Two-Wheeler Purchase

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For starters, it is advisable to consider a credit line for purchasing a new two-wheeler for keeping cash reserves in hand for emergencies. Now that you have made up your mind about getting a loan for your new vehicle, you can follow the mentioned strategies for making the most of the purchase:

  • Choose Wisely

A two wheeler loan is offered by a host of lenders and it is necessary to compare and choose well for getting a good deal on the credit line. However, the comparisons should be made based on the interest rates, ease of approval, overhead charges, and percentage of financial support.(checkout interest rate here)

  • Consider Used Vehicles, as well

If you want to make the most of your purchase, you should have an open mind towards used two-wheelers. While the new vehicles are tempting, you should never let go of a minimally used bike or any other vehicle, provided you get a decent price cut and financial support on the same.

  • Fix a Budget

A good way to make the purchase more productive is by predefining the budget and searching options in the concerned ballpark. Moreover, once you have a budget to work with, it becomes easier to calculate the down payment for a bike loan and use the EMI calculator to get more clarity on the EMIs and payment restructuring.

Besides, you also need to account for the additional monthly expenses concerning fuel, maintenance, and other overheads for setting a bike purchasing budget. Lastly, if you really want to make the purchase even more rewarding, try to maintain a good credit profile. 

Additional Read: What is Two-Wheeler Loan & Everything you need to Know

Best Tips For Buying A New Two Wheeler In India

Two-wheelers have become a lifeline for commuting by middle-class Indians as they are a cheaper mode of transport as compared to cars and can be easily purchased by making a full down payment or by taking a two wheeler loan from banks and private lenders. Hassle-free parking, easy maneuverability, and low maintenance are some of the attractive features of owning a two-wheeler.

Harley-DavidsonÕs new electric bike, LiveWire, is shown in this handout photo

Tips to buy a Two Wheeler in India  

While choosing a two-wheeler, you must take into consideration mileage, maintenance and servicing cost of the vehicle as it can burn a hole in your pocket if you buy a two-wheeler which is a fuel guzzler and requires heavy maintenance. Also, make sure that the two-wheeler manufacturer has an extensive network of service centers across the city.     

You must also take into consideration the resale value of the two-wheeler so that you get a good deal for your two-wheeler if you want to sell it after a few years.

Once you decide to buy a two-wheeler of your choice, you must explore the option of financing it through your preferred bank by taking a two-wheeler loan so that you don’t deplete your savings by making the entire down payment upfront.

The two-wheeler interest rate is lower as compared to personal loans and you can comfortably repay the loan amount in Equated Monthly Installments (EMIs) by choosing a tenure that suits your budget.

Additional Read: Use 5 Tips to Pay Off your Two Wheeler Loan Faster