This misconception is prevalent across all financing products, not just two-wheeler loans. Credit scores are important in evaluating bike loan eligibility but they are not the only aspect that the lender takes into account. While doing a risk assessment of your profile, your income, employment stability, and age are also taken into consideration. In case your credit score is low because you are a first-time applicant or due to erroneous details with the credit bureau, the lender won't mind approving you for a loan. Furthermore, consider adding a co-applicant to your application to get a better deal.
Many individuals believe that if a lender approves you for a low-interest loan, you don't have to think about anything else. However, this is not true at all. There are several other charges associated with a bike loan. Some of these charges are processing fees, foreclosure penalties, and partial prepayment penalties, among others. Even if the fees are small and are based on the principal amount/principal outstanding, you should still factor them in.
Three parties are involved in availing of a bike loan—a financial institution, borrower, and the bike dealership. Many people believe that loan processing takes a few weeks or even months because of the number of parties involved. This is yet another myth about a two-wheeler loan. Nowadays, getting a bike loan is a matter of a few clicks. You can easily initiate your loan application online. The required documents for bike loans are also kept at a minimum. Once you submit your details and the lender successfully validates them, the loan will be disbursed within 48 hours.
Also Read: 7 Reasons Why Hero FinCorp Two-Wheeler Loan is Perfect for Your Hero Bike
Two-wheeler loans have a reputation for making life easier. Its numerous features such as low-interest rates, flexible terms, and high loan-to-value (LTV), make them an ideal tool for obtaining funding for your dream bike. But before you commit to this finance alternative, it's critical to debunk all of the loans myths that often surround two-wheeler financing.
Hero Fincorp offers a wide range of financial products including Personal Loans for personal needs, Business Loans to support business growth, Used Car Loans for purchasing pre-owned vehicles, Two-Wheeler Loans for bike financing, and Loan Against Property for leveraging real estate assets. We provide tailored solutions with quick processing, minimal paperwork, and flexible repayment options for smooth and convenient borrowing experience.