Purchasing your very own bike requires a huge amount of funds. Paying the entire price upfront out of pocket may not be financially viable. But a two-wheeler loan can help you realise your dream of owning a bike without burdening you financially in the process.
That said, while applying for a bike loan, there are certain things that you should do and there are few that you shouldn’t, to ensure that the process goes on smoothly without any hassle. Check out these details below.
Things That You Should Do When Applying for a Two-Wheeler Loan
Let’s first take a look at some tips that you should follow at the time of application to increase the chances of the loan getting approved.
Check the Two-Wheeler Loan Eligibility Criteria
The eligibility criteria for a two-wheeler loan tends to differ from one lender to another. So, make sure to first check whether you satisfy the two-wheeler loan eligibility criteria of the lender with whom you’re applying for a loan.
Read through the Application Form before Submitting
Fill all of the fields in the application form. Once you’ve filled it, read through the form once to ensure that there aren’t any mistakes or errors, since that can lead to a rejection of your loan application.
Compare Multiple Loan Options
Just like how the two wheeler loan eligibility criteria differ from one lender to another, so do the interest rates and loan limits. Therefore, compare multiple loan offers from different service providers to make sure that you get the best deal.
Bring in a Co-applicant
If you find that your credit score is not optimal, you could always bring in a co-applicant with a good credit score. This can help increase the chances of your bike loan getting approved.
Use a Bike Loan EMI Calculator
It is important to know what your monthly obligations are likely to be before you go ahead and apply for a loan. The best way to determine that would be by using a bike loan EMI calculator.
Things That You Shouldn’t Do When Applying for a Two-Wheeler Loan
Now that you’ve seen things that you should do, let’s move on to the things that you should avoid at the time of application.
Don’t Make Multiple Loan Applications
When you make multiple loan applications in quick succession, your credit score takes a huge hit since lenders tend to categorise you as a desperate borrower. Give a healthy gap of a few months between two loan applications to make sure that your credit score stays intact.
Don’t Borrow More than You Can Repay
Getting a two-wheeler loan might be easy. However, it is advisable to only opt for a loan amount that you’re sure of being able to repay. Taking on a higher loan amount than you can afford to pay back can strain your finances.
Don’t Sign Loan Documents without Reading Them
Always make sure to read through the loan documents thoroughly - including all the fine print - before signing them. Pay more attention to key loan details such as the interest rate, EMI, tenure, and other charges.
Conclusion
Following all of the tips mentioned above will not only help increase the chances of landing a loan, but will also protect you from unwanted surprises. So, ensure that you use these do and don’ts to your advantage when applying for a bike loan.