5 things you need to consider before choosing a two-wheeler loan
If you have been considering opting for a two-wheeler loan, then you should consider the top 5 things before choosing a two-wheeler loan in India
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Type of Loan
Generally two types of loans are available, secured, and unsecured, and it is same for two-wheeler loans, as well. A secured loan tells you that you need to pledge an asset or collateral, which is of the same or equal value as the loan amount. On the other hand, in unsecured loan, you do not have to pledge any asset or collateral.
Most of the two-wheeler loans available in India are unsecured, few lenders offer secured loans as well that usually have lower rates of interest.
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Loan Tenure
Another thing to consider while opting for 2-wheeler loan is the tenure. Mostly lenders offer a 12 to 60 months tenure, so that you can effectively manage both your personal finances and the stress associated with repayment. However, one must take into consideration the fact that a longer tenure generally indicates that the loan will arrive with a higher interest rate, as the associated risk for the lender is higher. So, it is better to opt for a loan with a shorter tenure.
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Interest Rate
Before choosing any Bank from the Lending Platform, you need to check the rate of Interest that is being charged. Some Lenders might charge monthly interest or some Annually.
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Documents Required
A list of necessary documents are required for a bike loan for salaried as well as self-employed professionals. In case, you fail to provide any document, your Loan might get reject.
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Repayment Plan
Before choosing the two-wheeler loan, you should be prepared with a plan for the repayment. In case if you fail to repay any of the EMI, this can affect your Credit Score