India has seen a massive rise in the demand of two wheelers. It is no longer a luxury and has become a necessity. With a rise in purchasing power, households are not thinking twice before buying a new two wheeler and it has become an easy process. Some households own more than one bike and the lenders in the country help make the buying process smooth and convenient. If you are planning to purchase a bike, you are at the right place. The process is easy and hassle free. Most importantly, you do not need to worry about funding the purchase as you can apply for a bike loan. There are several lenders in the industry that offer a loan for the purchase of the bike and due to increasing competition, the interest rates are low and lucrative. If you want to apply for a bike loan, there are some steps you need to follow. Let us take a look at them in detail and learn about two-wheeler financing.
Set a budget
The first step to making any purchase is to set a budget. You need to decide the amount you want to spend on the bike. There could be a slight leeway but it is best to not exceed the budget. You need to try to stick to the amount. When you apply for a loan, you need to keep the interest element in mind and you must be capable of making the repayment on time.
Head to the dealership
There are hundreds of new models launched every year by different manufacturers. You must head to the dealership and take a look at all the models. Take your time in this process and do not rush the decision. You need to understand the technology and features of each model before you commit to one. You can also compare different models or different brands before making a decision. Keep in mind that the loan is available for all brands and types of models in the industry.
Shortlist the models
After visiting different dealerships, you need to shortlist the models that you like. Keeping the budget in mind, make a list of all the models you are keen on buying. This will help make the final decision. You can now compare the models with the features and choose the ones you want to take a test drive in.
Go for a test drive
Never buy a bike or car without taking the test drive in it. You must head to the dealership and take a test drive on all the bikes you have shortlisted. Check how you feel when you are riding it. When you sit on the bike, you should feel comfortable and your feet should easily touch the ground. You should feel comfortable with the weight and height of the bike. If you feel discomfort when driving, you need to look for other options.
Scout the market for lenders
Now that you have decided on the bike you want to buy, you will have to look for lenders in the industry. The dealer might offer to finance the purchase but it is best to look for lenders on your own. You can visit different lenders and understand the terms of the loan. Alternatively, you can also gather all the information online and then compare the same. Compare the interest rate offered by different lenders and choose a lender with a low-interest rate as it will reduce the cost of borrowing. You must also check the repayment terms and the eligibility criteria on the loan. Speak to a few lenders if necessary.
Use the EMI calculator
Always use the EMI calculator to get an insight into the EMI payable on the loan. The calculator is available online for free. You can head to the website of the lender and provide the loan amount, and tenure to get the estimate. The EMI estimate will give an insight into the monthly payment you need to make and whether you will be able to make it or not. If you think that the EMI is very high, you can change the inputs and see the difference. When using the EMI calculator, remember that the entire value of the bike will not be your loan amount. You will also have to make a down payment which will reduce the loan.
Make a down payment
All lenders have a minimum downpayment requirement and the balance will be your loan. The amount will vary from one lender to another and you will have to adhere to the same. In case you have extra funds on hand, you can choose to make a higher downpayment and reduce the amount of the loan. The loan will only be processed once you have made the downpayment.
Gather the documents
Now that you have made the downpayment, you are ready to apply for the loan. You will need to gather and scan the documents required for the loan to be processed. You will need identity proof, income proof, address proof, passport-sized photographs, invoice of the bike and proof of downpayment. If you do not have an adequate flow of income, you may ask for a guarantor for the loan. If the documentation is ready, the loan application will be processed and approved without any delay.
Make an online loan application
Make an online loan application by filling the application form and uploading the relevant documents. This process will not take more than 10 minutes and your application will be submitted. Sign on the documents only after you have thoroughly read and understood the terms and conditions. If you need any help, you can contact the customer executives who will help you with the same. If any documents are missing, the team will contact you regarding them. Lastly, if everything is in place, the loan application will be processed and approved in 24 to 48 hours.
Prepare repayment schedule
The final step is not the approval of the loan but preparing a repayment schedule to ensure timely payment of dues. Keeping the EMI amount in mind, you need to prepare a repayment schedule and ensure that the EMI is paid without default. You must consider the monthly income and expenses when preparing the schedule and stick to it.
Follow these 10 steps to apply for a bike loan in India and bring home your favourite bike. You do not need to worry about making a high upfront payment or using your emergency funds for the purchase. Lenders have a high loan amount and they offer the loan at friendly terms of repayment. Understand the terms and conditions of repayment before you sign on the dotted line. You can use the bike while you make EMI payments. A Bike loan is one of the most common forms of borrowing in the country and several bike owners have purchased their dream bikes using the loan. Depending on the type and brand of bike you want to own, the lender will have a downpayment requirement and once you make the minimum payment, the balance will be your loan and it will be approved in no time.
For more information regarding loans and financing visit the official page of HeroFinCorp.