Purchasing a bike on loan is an easy and convenient method as it relieves you of the financial burden of one-time payment. Once the lender approves the loan, you may get it within the same day. There are several two-wheeler finance companies in India besides banks that provide loans. But whom should you borrow from? Apart from the EMI (Equated Monthly Expenses), you may be having other regular expenses once you take a loan. Look for lenders who offer comfortable terms and conditions like low interest rates, flexible repayment period, etc. Read on to know the factors that you should consider important while selecting a lender for two wheeler loan in Lucknow.
Things that you should take care of while selecting a lender for two-wheeler loans:
Conduct research
Suppose you want to select a lender who offers two wheeler loan in Lucknow. Go through the online portals of different lenders based in Lucknow and check their terms and conditions, interest rates and maximum loan amount that they would offer. Also check the various fees and charges that are associated with the loans. Use an online two-wheeler finance EMI calculator to compare the loan EMI between different financial institutions.
Hidden clauses
Sometimes lenders have hidden clauses that can affect your loan amount like processing fees, other charges, etc. Check for these things before you submit your loan application as they can bring difficulties once you avail the loan.
Loan amount
Many finance companies would offer offline or online bike finance in Lucknow up to an amount of 100% of the two-wheeler price while others would offer 90-95% or lesser. This known as Loan to Value (LTV) ratio. It depends on the type of two-wheeler that you are buying like brand-new or 2nd hand. Some lenders would additionally consider your profile, source of income, credit history, etc. Compare the LTV ratio by different lenders and choose one who offers the maximum loan amount as per the bike price. However, you need to check whether the EMI amount is okay for you when you finalise the loan amount. You should be able to pay it without difficulty.
Interest rate
Check the interest rate that the lenders are charging. It would depend on your age, income, employment status, credit history, etc. Select a lender who offers an interest rate that would be affordable for you. The Annual Percentage Rate (APR) will also vary between lenders. It includes the costs and expenses related to the loan.
Special offers
You will find two wheeler finance companies in India offering attractive discounts and offers during festive seasons, particular periods like monsoons, winters, etc. The offers include low interest rates, zero down payments, no processing fees, and 100% financing. If you are an existing client, your lender may give you additional benefits compared to new applicants. This way you can save more on your EMIs.
Repayment option
You will find that longer is the duration of repayment, higher would be the interest rate. Choose a lender who would allow flexible EMIs, so that you can repay back the loan quickly without paying a higher amount as interest on the loan. There can be other expenses like part prepayment charges, foreclosures charges, loan rescheduling charges, etc. remember to check these as well.
While you select the most suitable lender and arrange the documents for applying for a two wheeler loan in Lucknow, there are certain factors that you should take care of. There may be several lenders of two wheeler loans but you should go someone who offers loan with easy terms and conditions, low interest, etc. It would be easy for you to pay back without having any stress.
