5 things to consider before taking a two-wheeler loan

You have decided to buy your dream 200 cc motorbike, and you can hardly manage enough money for it. You want to apply for a two wheeler loan, but you don’t know where to begin. No wonder, a two wheeler loan is the best option to finance your favourite motorbike. It makes it easier for you to buy your choice of motorbike, without worrying about paying the entire price at once.

There are innumerable banks and financial institutions offering two wheeler loans. Nevertheless, it is quite challenging to find a suitable bike loan. Here are 5 things you need to consider before you buy a two wheeler loan in the market.

1. Check your credit score

If you have any other loan, it will be a good practice to check your credit score before applying for a two wheeler loan. If you are not sure what a credit score is, here is some information about it. It is a score that indicates your creditworthiness, and is provided by the credit bureaus like CIBIL in numbers within 900 points based on your credit history.

A decent score is 750 points and above, which makes the purchase of a two wheeler easy with bike financing. The benefit of having a decent to excellent credit score is you can acquire a two-wheeler loan at a lower interest rate.  How will you check your credit score? As mentioned earlier, there are credit bureaus like CIBIL, which can give you a credit report online.

2. Your eligibility

When it comes to determining the eligibility of a loan applicant, it depends on the bank, for it has its own criteria. Nevertheless, you can find most lending platforms following a few standards such as the minimum and maximum age, residing at a declared address at least for a year, and so on. In case you wish to know your two-wheeler loan eligibility, you can check in a few minutes using the IDFC First Bank two wheeler loan EMI calculator.

3. Know the maximum loan amount you get

Most banks have their own standards in providing the loan amount. It majorly depends on the cost of the motorbike you choose, and your 2 wheeler loan eligibility. At IDFC First Bank, you can avail up to 90 percent of the motorcycle cost as a loan if you are eligible. Moreover, you get it for the best interest rate, and need to pay only a small amount as down payment.

4. Loan process

Unlike that in the past, two wheeler loans are easily applied and processed online. If you pass the bike loan eligibility process, you get two wheeler finance quickly and without any hassle from online loan. As an IDFC First Bank customer, if you are eligible, you can have your two wheeler loan approval instantly on filling out and submitting the application form on the IDFC First Bank website or mobile app. Once you have the amount credited in your account, further process is as easy as completing the formalities.

5. Loan tenure

The equated monthly instalment or EMI of your two wheeler loan largely depends on the tenure of the loan. Of course, the loan amount and interest also have an effect on the bike EMI. By having a long tenure, you will have a low EMI, but you pay a high interest rate. On the contrary, the higher the EMI, the lower the interest you pay. Therefore, choose your bike loan tenure wisely.

Considering all the information given above, you can apply for a two wheeler loan on the IDFC First Bank website by clicking here.

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.