Applying for a two-wheeler loan? Here’s what to look out for!
Last Modified: 31-March-2022
Are you done with using public transportation and now want to switch to a more convenient option that saves time? Then buying a two-wheeler is the best bet for you – no hassle of finding parking space (or even driving space on a cluttered road) anymore. The good news is, owning a two-wheeler has become much easier today, thanks to two-wheeler loans from financial institutions. So today, let’s talk about how to buy a bike on EMI and drive your way right out of the traffic!
While two-wheeler loans and several other financing schemes bring you closer to your dream of owning a vehicle, it is also essential to know a few things beforehand. Therefore, we bring to you the top 5 things you should keep in mind when applying for a two-wheeler loan:
Which One Are You Buying?
The market is brimming with different types of two-wheelers. While some boast of mileage, others have a lightweight design and style. So, when applying for a loan, you should know which one you want to buy. This will help you find out the on-road price of the two-wheeler, thus telling the exact loan amount you would need.
How Much Do You Need to Borrow?
If you have been planning to buy a two-wheeler for a long time, chances are you would be saving up for it. However, you might be falling short of a small amount and have been looking at loan options. Financial institutions such as Muthoot Capital fund 100% of the on-road price of the two-wheeler.
Your Eligibility for the Loan
Similar to any other loans, two-wheeler loans are also approved when the applicant meets the eligibility criteria. This may include documentation related to proof of identity, age, income, and proof of address. To buy bike on EMI, you should be at least 18 years of age. In addition, Muthoot Capital lays down several other eligibility criteria on its website.
You Credit Score
A good credit score is synonymous with getting a loan quickly. Your credit score showcases how well you manage your debt. The credit score goes up when you make payments on your loan or credit cards on time and goes down when you do not. A credit score of 750 is ideal to be able to get a loan sanctioned. Maintaining a good credit score may also make you eligible for loans with lower interest rates. If you have a low credit score, you might need to work on that before making a loan application.
Interest rates are a component of loans that drive up the final payback. If you get a loan with a high-interest rate, you might pay a lot more than your two-wheeler’s cost. Hence, it is imperative to secure a loan at the lowest rate possible. For this, when looking for options, you must compare the offerings of different financial institutions. You can quickly do your research online before settling on an option. This will help you eliminate the options whose eligibility criteria you don’t qualify for or are giving loans at a higher interest rate than the market standards.
If you’re looking for a two wheeler loan, apply online for the best hassle-free experience. Before applying for the loan, you must know the loan amount you need and the eligibility criteria. Once you have gathered all the information regarding the eligibility criteria of Muthoot Capital, your next step is to fill up the application online, submit your documents for verification. Once the verification is done, and you are found eligible, the loan amount is approved. You are now on your way to buy your favorite bike on EMI and steer clear of public transport!