The decision to avail of a bike loan can accrue multiple advantages to the borrower, provided certain aspects are taken care of. A good starting point for any borrower should be to ascertain the amount that can be borrowed as loan, and the bike interest rate that the lender would charge. Next, you can check whether or not you are eligible to avail of the loan by going through the criteria specified by the lender. Repayment is another aspect that you must look into in terms of the amount to be paid as monthly instalment, as also the flexibility in the terms. 

Choose a lender that offers the facility of instant approval of the loan application to cut down on the waiting period. Also time your application and purchase so as to accrue maximum benefits in terms of festive discounts and waivers that can reduce the price. Lastly, read reviews and feedback on the lender as accorded by past customers to judge reliability.

Availing of a bike loan emerges as the most convenient option for buying a two wheeler without having to worry about the budget. What adds to the attraction is the fact that nowadays there is no dearth of lenders who offer two wheeler loans at feasible bike interest rate. However, given the large number of players, picking the right lender can be quite overwhelming for the borrower. 

To render this task easier, discussed as follows are primary aspects that you as the borrower must bear in mind while availing of the bike loan – 

Amount you can borrow – This aspect varies from lender to lender, wherein some would willingly provide most of the cost, while others will lend a fraction. Usually lenders ascertain the amount to be disbursed after checking the viability of the brand and model, and also your past financial behaviour. On your part, you must take the initiative and inquire about the amount that you can expect as the bike loan, and then make a choice. 

Whether you are eligible – Before approving the bike loan or even levying a bike interest rate, lenders will check your eligibility through various metrics. Important aspects of the eligibility criteria include your age, whether you have a stable source of income, and salary slips. Depending on their policy, lenders might seek documents pertaining to citizenship, proof of address and so on, to determine your eligibility for the loan. 

Monthly instalments – Every loan, including the bike loan, brings with it the obligation of paying monthly instalments towards repayment. For you, this aspect is important because you need to be comfortable while remitting the amount on a monthly basis. Factors that play a crucial role in determining the instalment amount are the total value of the loan, bike interest rate that is levied and the tenure of repayment. Before applying you can use the calculator provided on the lender’s website to pinpoint the amount, rate of interest and the tenure that would be most feasible. 

Flexible repayment options – If your creditworthiness allows, opt for flexible payment options for your monthly instalments. For example, discuss with the lender if you can pay multiple instalments at the same time in the event of increased cash-flow. Likewise, also seek for a certain grace period for paying the instalment in the event you might be traveling or an emergency might have come up. 

Application process – Your priority should be to find a lender that provides the simplest process in terms of documentation, verification and approval. The swifter the application is approved and verified, the faster the loan amount would be disbursed into your account for purchase. Therefore, the objective should be to identify a lender who grants instant approval and has the minima; processing time. 

Special offers/discounts – It is usual for lenders to offer waivers and discounts during the festive season, and you can avail of these by timing your loan application. At the same time explore the lender’s partnerships and whether these would yield a further reduction in the price of the vehicle. While these perks might seem insignificant at the time, they can make a sizeable difference to your EMI in the long run. 

Final word

Ultimately, do make it a point to check the reviews on the lender left by past customers. These can provide valuable insight into the inner dealings, for example in context of down payment, and enable you to make an informed decision. Research would also reveal the lender’s inclination towards the bike interest rate, which would matter to you going ahead. 

Owing to having operated in this niche for several years, Bajaj Finserv is one of the most reputed and reliable names that you can trust when it comes to a bike loan. 

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