Everyone wants to own a two-wheeler. Due to the increasing traffic on the roads, two-wheelers have become an essential part of everyone’s life. They are not only cheap but are also more comfortable to navigate through traffic. There is no doubt that India has one of the biggest markets of two-wheelers in the world. Also, with the less consumption of fuel, they are more economical and better for the environment than four-wheelers.
Many financial advisors suggest availing the benefits of a two-wheeler loan. With the help of the personal loan, you can buy yourself your dream bike. Interest rates for bike loan are very economical, and you can repay the loan in the form of easy monthly instalments. You can check the total cost of the loan with the help of a bike loan calculator. Given below are some useful tips through which you can fund yourself to buy a bike or scooter of your choice.
Effective Tips for Funding a Two-Wheeler Purchase:
1. Deciding which vehicle you want
Before applying for a loan for a two-wheeler, you should select the two-wheeler you wish to buy. As prices vary from thousand to lakhs, you should know about the amount of money you want. Bikes are costlier than gearless scooters, but bikes are more powerful and come in handy if you travel a long distance. Gearless motorcycles can be used for easy navigation and cost a little less.
2. Balancing your budget
The most crucial thing before availing a loan is to fix your budget. If you want to pay EMI’s without ruining your whole budget, you should know about your disposable income so that you can choose the amount according to your ease. With the help of this, you will be able to select the period of the loan and amount of EMI.
3. Keep a check on credit score
Individuals having higher credit score are more likely to be approved of a two-wheeler loan as compare to individuals having a low credit score. Bike loans are secured loans against your vehicle and mostly short-termed, so credit score makes a significant impact on the sanctioning of a loan and the interest rates provided by the lender. It is advisable to maintain a credit score above 750 for better availability of loan.
4. Brand new or used
Once you have decided what model and which type of vehicle you need, you should decide wheater you want a new bike or a second hand. This decision depends on your daily use. If you don’t need a two-wheeler daily, then it is advisable to go for a used vehicle, and if you’re going to use it every day, get a new one. A new bike costs more, but the cost of maintenance of the new vehicle is less as compared to that of a used one.
5. Insurance is must
The most important thing is insurance – not only because it’s mandatory, but it also provides you with financial security. You can buy two-wheeler insurance online by comparing and choosing the one according to your need.
Having a two-wheeler these days is a necessity, and you can buy a new bike with the help of a two wheeler loan. Before applying for a loan, you should always decide the amount before applying so that you can balance your budget. You can save a lot by comparing insurances.