What you need to know before buying a pre-owned bike on EMI

Bike ownership represents more than just a mode of transportation for countless individuals - it is a symbol of freedom and adventure and a cherished dream. It can, however, be difficult for first-time buyers to navigate the complex loan process and understand the steps involved in financing a two-wheeler through EMIs. Finding the best deal and a budget-friendly loan to finance the purchase becomes our top priority, as we strive to transform those dreams into reality.

A Two-Wheeler Loan can be a more judicious and financially responsible choice than depleting your savings to buy that dream bike. A thorough online exploration of financing options is always recommended, but IDFC FIRST Bank has made it its mission to ease the road toward bike ownership by offering affordable loans, extended tenures, and flexible repayment plans tailored to your needs.

Read on to find out more about getting your dream pre-owned bike on EMI.

Why opt for a Two-Wheeler Loan to purchase a used bike?

Used bikes offer an attractive and budget-friendly solution for those seeking a reliable mode of transportation to conquer the daily commute or effortlessly glide through city streets. You might be tempted to dip into your savings to purchase a pre-owned bike, but applying for a Two-Wheeler Loan will unlock a host of exciting benefits.

Here are a few benefits of purchasing a used bike with a pre-owned bike loan:

• You can manage your finances efficiently without putting too much strain on yourself.
• You can invest and build a corpus while purchasing your preferred bike with your savings.
• You can buy your dream bike without compromising with a bike loan.
• Used bike loans also qualify for tax benefits.
• A bike loan is a low amount of financing, making it easy to manage and helps you build a good CIBIL score.
• IDFC FIRST Bank offers affordable used-bike loans at low interest rates.

Things to consider before purchasing a pre-owned bike on EMI

The process of refinancing your used bike is paperless and simple, which makes it simpler to manage your finances and repayments. However, you should keep the following factors in mind before buying a used bike on loan.

• Eligibility

For any loan, lenders lay down specific eligibility criteria. For used bike loans, lenders consider factors such as age, monthly income, expenses, CIBIL score, and financial status. There may be a difference in eligibility from bank to bank, so you should research online and find an appropriate lender. For convenient loan applications, IDFC FIRST Bank offers lenient criteria and salary requirements. An applicant who is over 21 years of age or 18 years with a co-applicant can apply for a loan, however, he or she must be an Indian citizen.

• Documentation

Documentation is an important step in the loan application process. The lending bank verifies your identity and finances to process the application. In addition to your identity proof like Aadhaar card and passport, you must also submit address proof such as utility bills and Aadhaar. You will also need to provide proof of your income by submitting your bank statement and salary slip. 

• Loan flexibility

For convenient repayments, IDFC FIRST Bank offers flexible tenures ranging from 6 to 48 months. However, the tenures may vary from bank to bank. You can choose a loan term depending on your financial requirements and planning. Note that your loan tenure is a determining factor for your EMI. So, choose a viable repayment term.  

• Down payment

When you buy a used bike on EMI, you need to pay a down payment upfront. To have a convenient purchase, choose a lender that allows low-down payments. If you purchase a bike on EMI through IDFC FIRST Bank, you can make a down payment of as little as 10%.  

• Additional charges

In addition to interest rates on bike loans, you must also consider the loan processing fee, administrative charges, prepayment charges, and late payment fee. Taking fees into account helps you find an affordable deal. To maintain complete transparency and affordability, IDFC FIRST Bank provides low charges, which you can find in the Two-Wheeler Loan section.

You can explore the myriad of finance options available to you if you wish to ride a used bike on EMI. Take the time to research online and explore your options.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.