A loan created to fund the purchase of a two-wheeled vehicle, like a motorbike or scooter, is known as a loan for two-wheelers. A bike loan is quite helpful for those who want to own a two wheeler without making a significant and immediate cash payment. There are some facts to keep in mind to ensure simple loan approval, a seamless procedure, and to prevent any potential hurdles. Below are the things you should do and the things you should not do. Let us explore these do’s and don’ts for bike finance.
Things To Do:
- Do your homework while registering for bike financing: Compare the lending rates offered by different financial institutions. This would enable you to negotiate a better bike loan offer. It might become easy for you to get a low interest two-wheeler loan.
- Calculate the loan sum: Depending on your financial status and the price of the two wheeler you wish to buy, determine the amount you require.
- Review the prerequisites: During the loan process, ensure you fulfill the lender’s eligibility requirements regarding your age, income, and job status.
- Include a co-applicant: To enhance your likelihood of securing the loan you can consider finding a guarantor. Include a co-applicant who has a steady source of income and strong credit. One important thing to remember is that if you cancel the loan after it has been accepted, it will impact both your and the co-credit applicant’s scores.
- Verify your credit score: It’s crucial to check your credit score before seeking bike finance as it can affect both the lending rate and approval status.
Things Not To Do:
- Do Not Provide False Information: Providing false or inaccurate information might have a significant impact on your request for a loan. You could have your loan application rejected, or if the provider learns later, they might terminate the bike loan. It might also negatively affect your credit rating, making it challenging for you to obtain a loan at some point. It is crucial to give the lender all the necessary information truthfully and precisely. You can also get a low interest two-wheeler loan.
- Do Not Postpone Loan EMIs: Postponing or non-repayment of loan EMIs can have major repercussions, such as late fines, higher interest rates, and harm to the credit rating. To prevent these issues, making regular payments and remembering your loan commitments is critical. Consider contacting the lender to explore other choices if you need help making instalments.
Summary
To get the best bike finance, it is important to abide by the things that you should do and the things that you should not do during the time when you apply for a loan. It will be easier for you to show yourself as a creditworthy customer if you are entirely aware of the minimal criteria, supporting documents, and credit score.