Top 5 Aspects to Consider before Taking a Two Wheeler loan

 

2. Type of Loan

 
Globally there are two types of loans available in every category, secured and unsecured, and the same is true for two-wheeler loans, as well. A secured loan dictates 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, to avail an unsecured loan, you do not have to pledge any asset or collateral.
 
Although most two-wheeler loans available in India are unsecured, there are some lenders who offer secured loans as well that usually have lower rates of interest.
 

3. Tenure of Your Loan

 
The third aspect you need to consider in order to get the best two wheeler loan is the tenure of the loan. Most lenders in India offer a 12 to 60 months tenure, so that you can effectively manage both your personal finances and the stress associated with paying off a loan. However, you need to 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.
 
Also Read: A Complete Guide To Choosing The Two-Wheeler Loan Tenure
 

4. Nature of Interest Being Charged

 
In the world of lending, rate of interest can be broadly divided into two main categories; floating and fixed. A floating rate of interest is one where the rate of interest either increases or decreases with time, depending on a variety of factors like the present market conditions, the loan amount which is still due for repayment, your credit score and the number of payments you have made in the past (both timely and missed). Few lenders offer a floating interest rate on two-wheeler loans. A fixed rate of interest dictates that the rate of interest that has been mutually agreed upon between the lender and borrower, at the time of signing the documents will remain unchanged throughout the tenure of the loan.
 

5. Documents Required

 
Mentioned below is a list of documents required for a bike loan for salaried as well as self-employed professionals.
 

1. Salaried Professionals

 

• eKYC documents - Aadhar Card, PAN Card, Voter ID, etc.
• Income proof - salary slip, ITR and latest bank statement
• Cancelled cheque and passport size photographs

 

2. Self-employed Professionals

 

• eKYC documents - Aadhar Card, PAN Card, Voter ID, etc.
• Income proof - income certificate, ITR and latest bank statement
• Cancelled cheque and passport size photographs

 
Availing the benefits of the best two-wheeler loan means ensuring that your dream of owning a bike becomes a reality. So, take the above aspects into serious consideration and make your choice wisely.