10 important tips for hitting the road with a bike
Buying the motorcycle of your dream is very much possible with the help of a bike loan that is less burdensome on your pocket. The trouble is when you have several options in front of you and are unable to pick the right one for yourself. To put an end to all your concerns, we have listed down 10 tips that you can follow to ensure the most appropriate two wheeler loan.
10 tips to consider before applying for a bike loan :
1. Identify the amount of loan
The first and the most important thing you need to do is to identify the bike you want to buy and its price. This is so that you do not end up borrowing an excessive amount of loan.
2. Interest Rates
Bike loan interest rates are the main yardstick that people use to compare loans, and without a doubt it is the important factor to be considered. You must choose a loan with the least interest rate.
Fees are another factor that will directly affect the cost of borrowing. These charges may not always be brought to your notice, but you need to know what all fees apply and how much impact they have on the overall amount being borrowed.
4. Loan Security
Lender or the bank has some ownership to the two-wheeler you buy. It means, that a failure to meet the terms and conditions of the contract will allow them to repossess your motorcycle. Hence, you must ensure that you are particular with the payments.
5. Early pay-out
If you are planning to make an early payment of your loan, ensure that your loan allows this kind of flexibility without pre-payment charges.
6. Loan inclusions
Ensure that your loan includes everything that you want it to. Or else you might end up paying a sneaky little extra amount that you might be unaware of.
7. Credit score
Check your credit score and make sure that it is acceptable. Your credit score is the first thing that a lender will evaluate, to eliminate any risk.
8. Secured and unsecured Bike loan
Unsecured loans are the ones that do not have a collateral. They have a higher interest rate, and are more difficult to get. On the other hand, secured loans are easier to get, and have a collateral involved with a lower interest rate. Bike loan can be secured or unsecured.
9. Consider online lenders
Online lenders have competitive interest rates and additional fees are minimal.
10. Bargain for the best deal
Do not hesitate to bargain with your preferred finance partner. Negotiations and flexibility are sometimes possible.