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Quick Steps to Follow While Acquiring Bike Finance

by Steven Brown
two wheeler loan interest rate

Applying for bike finance is one of the most convenient ways of buying a two wheeler without having to expend your savings. However, to be able to accrue the numerous benefits of a two wheeler loan, you need to be aware of how to apply for it and most importantly with whom. The ideal starting point would be to compile a list lenders, interacting with each of them, and then selecting one which comes across as suitable for your financial situation. 

Eligibility and documentation form an important part of the loan process, and the onus is on you to check both prior to filling in the application form. Go through the eligibility criteria and gather the documents beforehand to save time later on. Also use the EMI calculator to work out the two wheeler loan interest rate and the tenure that would enable you to pay the monthly instalments with ease. Submit the application form, and after it is verified by the lender, the amount is disbursed into your account. 

Bike finance refers to a two-wheeler loan, and it serves the purpose of facilitating the purchase of a vehicle to add to your comfort and convenience. Given the congestion and limited parking facilities, it is but natural to want to invest in a two wheeler. Since it is a one-time buy, you might as well opt for a well-known brand and model, and this is where bike finance comes into the picture. Rather than expend your savings towards the purchase, you can avail of the two wheeler loan, which considerably eases the financial burden. 

Benefits of bike finance notwithstanding, you would need to follow certain steps to avail of this source of funding. Two wheeler loan interest rate is another aspect that you need to be aware of owing to its impact on the amount to be paid as monthly instalment. For the entire experience of buying a two wheeler via a loan to be pleasant, you can follow these steps in a sequence – 

Phase 1: Prepare a list of possible lenders who offer bike finance and conduct research on each one of them. Preferably call them up one by one and inquire about the details of the loan, like the amount, interest rate, conditions for repayment, processing fees and foreclosure charges. Compare the information and narrow down the list to a couple of lenders who seem to offer the most attractive deal. To open discussion, you can either visit them in person, or ask them to send a representative to pay you a visit. 

Phase 2: This phase requires you to focus on two aspects, namely establishing your eligibility and gathering your documents. Usually lenders focus on the following metrics to ascertain the eligibility of the applicant – 

Age, as in whether the candidate is older than minimum specified age and younger than the minimum specified age;

Citizenship, although this factor might vary from one lender to another;

Employment, wherein lenders prefer stability and will also require you to submit relevant documents that prove your income and its source;

Credit score, which should be high, and reflective of a strong financial standing;

As far as documents are concerned, lenders will require you to submit proof of identity and address, salary slips, bank statements, and income tax return. They will also require you to attach a passport-sized photograph of yourself at the time of uploading the documents. 

Phase 3: Next, you need to use the EMI calculator on the lender’s website to determine the amount to be remitted as monthly instalment. Apart from the loan amount, the two wheeler loan interest rate and the tenure play a crucial role in the calculation of EMI. On your part, you can identify the amount that you would be comfortable paying every month by tweaking either of the three components. 

Phase 4: Fill in the two wheeler loan application form on the lender’s website with accurate information, and upload all the relevant documents along with your photograph. Mention the amount that you would like to borrow as loan and the tenure over which you intend to repay it. Submit the application and await confirmation from the lender. 

Once the lender checks your eligibility and verifies the information and the documents, the loan will be approved and remitted into your bank account. 

Final word

Your objective should be persuade the lender to lower the two wheeler loan interest rate, which in turn will reduce the EMI. What you can also do is apply for bike finance during the festive season so as to benefit from discounts like waiving off the processing fee and getting freebies like jacket and gloves with the vehicle. 

Bajaj Finserv offers detailed instructions on its website as to the step by step process on how to apply for bike finance. All you need to do is follow the procedure and avail of this financial product from within the comfort of your home. 

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