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Bike Finance: Useful Tips to Fund the Purchase of Your Two Wheeler

As important as two wheelers are today, selecting the right bike model and its suitable financing option comes with significant responsibility too. As several lenders in the market provide funding for two-wheeler purchase, finding a suitable financial institution should not be a challenge based on lender availability. When selecting a lending institution for bike finance, one must be cautious though to consider a handful of reasonable aspects that can affect his/her finances and overall loan management remarkably.

Keeping yourself ready with the right financing preparation in place can ease the entire process of bike ownership, from funding to purchase and repayment. Let’s take a look at some useful tips that can help fund the purchase of your desired two-wheeler.

Tip 1: Choose a Suitable Vehicle Model

With a range of bike models available for purchase and bike finance of high value available from different lenders, aspiring bike owners get to choose suitably a bike model of their liking. When selecting the bike model of your choice, make sure to consider your finances and if the cost attached would be affordable to meet.

Tip 2: Opt Between New and Used Bike for Purchase

With a widespread market for both new and used bikes available, individuals are also free to choose between the two options for suitable vehicle purchase. Given that used bike loans are available for all vehicle makes and models with reasonable financing, the constraint of non-availability of desired bike model and consequent financing is eliminated too.

When choosing between the two, you can consider your financial standing and affordability as the repayment liabilities of these two loan types can vastly differ depending on your choice of vehicle.

Tip 3: Decide on Your Budget

You must determine the affordability of chosen loan beforehand as it can impact your finances in the upcoming few years. Given that bike loans are repayable with a tenure extension of up to 5 years mostly, you must decide on your bike finance budget accordingly and give a final go to the funding option at hand.

Tip 4: Assess Your Creditworthiness

These financing options are available against simple two wheeler loan documents and eligibility criteria and are secured funding options. It thus allows lenders to eliminate the mandatory minimum credit score requirement as one of the eligibility criteria for loan approval as against unsecured advances. Nevertheless, one must be creditworthy enough and be reliable towards loan repayment as the lender is still undertaking significant risk when financing the loan.

Financial institutions mostly rely on an applicant’s credit score and history to determine his/her creditworthiness, with a score above 700 considered suitable for lending. You must thus make sure that you have assessed your credit score before applying for your loan and improve on necessary aspects to reflect on this score if needed for improved chances of loan approval.

Tip 5: Plan Your Repayments Well

An aspiring bike loan borrower must also plan his/her repayments before applying as it allows better control over their personal financial management. You can consider assessing the EMIs payable with the help of an EMI calculator and choose a loan amount and tenure that keeps the instalments affordable.

Tip 6: Select a Suitable Financing Option

Bike loans are commonly available under two different types, as bike loans with down payment, which is a conventional option, and 100% bike finance. The latter eliminates the need for upfront payment and provides complete financing at elevated eligibility fulfilment.

Once you have considered these tips and maximised your loan chances of loan availability, it is prudent to decide on the lending institution carefully for suitable bike finance. Consider the likes of available features, repayment options, interest rate levy, and tenure available to finalise your lending institution and apply.

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