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5 Things You Need to Know Before Applying for a Bike Loan

<p style&equals;"text-align&colon; justify&semi;">Two-wheelers are very much in demand because they are affordable&comma; economically cheaper to travel and also fast&period; That is why young and adult alike invest in a two-wheeler for their daily travel needs&period; Even though two-wheelers are not as expensive as cars&comma; people might not always have sufficient funds needed to buy a bike&period; In such cases&comma; two-wheeler loans help with the funding&period; These loans provide you with the finance required to buy a bike&period; The interest rate is affordable and you can easily buy a bike without waiting for your savings to accumulate&period; Though two-wheeler loans are easily available&comma; there are some things which you should know before applying for a bike loan&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Here are the five main aspects of the loan which you should know –<&sol;p>&NewLine;<ol style&equals;"text-align&colon; justify&semi;">&NewLine;<li>&NewLine;<h2><strong>The loan would come associated with an EMI<&sol;strong><&sol;h2>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Every loan you avail needs repayment and bike loans are not different&period; After you avail a loan you would have to pay Equated Monthly Instalments &lpar;EMI&rpar; towards the loan&period; Before applying for the loan&comma; you should first ensure that the EMIs are affordable&period; Don’t get carried away with the desire to own a bike&period; Work out the affordability of the potential EMIs before indulging in a bike loan&period; There are online EMI calculators which help you calculate the EMI before applying for the loan&period; Use the calculator to find the most affordable EMI&period;<&sol;p>&NewLine;<ol style&equals;"text-align&colon; justify&semi;" start&equals;"2">&NewLine;<li>&NewLine;<h2><strong> Different loans have different interest rates<&sol;strong><&sol;h2>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p style&equals;"text-align&colon; justify&semi;">There are more than two dozen lenders who are willing to offer you a loan to buy a bike and each lender has a different loan interest rate&period; Before choosing a lender&comma; comparison of different interest rates is a must&period; Since interest is an additional cost&comma; you should find the lowest possible rate to save money&period; To find the lowest rate&comma; comparison of different loans is a must&period; You should choose a lender only after comparison and ensure that the lender charges the lowest rate of interest on your loan&period;<&sol;p>&NewLine;<ol style&equals;"text-align&colon; justify&semi;" start&equals;"3">&NewLine;<li>&NewLine;<h2><strong> There would be an eligibility criterion on the loan<&sol;strong><&sol;h2>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p style&equals;"text-align&colon; justify&semi;">To avail a bike loan you would have to fulfil some prescribed eligibility criteria&period; The criteria are specified by the lender&period; They include your age&comma; income&comma; occupation&comma; work experience and credit score&period; Bike loans are available to individuals who are more than 18 years old&comma; have an occupation and earn a minimum level of income per month&period; In case of credit score&comma; a score of 650 and above is required by lenders&period; So&comma; you should check the eligibility parameters of the lender from whom you are seeking the loan to ensure that you fulfil all the requirements&period;<&sol;p>&NewLine;<ol style&equals;"text-align&colon; justify&semi;" start&equals;"4">&NewLine;<li>&NewLine;<h2><strong> Pre-payment facility might be available in the loan<&sol;strong><&sol;h2>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Pre-paying the loan means paying a lump sum part of the loan or the entire loan before the stipulated tenure&period; Prepayment facility is allowed in almost all bike loans and it allows you to get rid of the debt faster&period; However&comma; there might be terms and conditions associated with prepayment&period; Lenders might either charge a penalty on prepayment or the facility might be provided after a specified tenure&period; You should&comma; therefore&comma; find out the complete details of prepayment before selecting the loan&period;<&sol;p>&NewLine;<ol style&equals;"text-align&colon; justify&semi;" start&equals;"5">&NewLine;<li>&NewLine;<h2><strong> The loan doesn’t pay for two-wheeler insurance premium<&sol;strong><&sol;h2>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Two-wheeler insurance is a mandatory cover for all two-wheelers&period; That is why you often get the policy’s premium included in the bike cost when you buy a new bike&period; However&comma; a bike loan doesn’t cover the two-wheeler insurance premium when financing the bike&period; A loan is available for a percentage of the bike’s cost and this percentage excludes bike insurance&period; If you get a loan for up to 90&percnt; of the cost of the bike&comma; the remaining 10&percnt; and the bike insurance premium would have to be paid by you&period; You can use a <u>bike insurance calculator<&sol;u> to work out the premium payable for the policy and then arrange funds to pay the premium&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">So&comma; if you are eyeing a new bike&comma; avail a loan to fund your purchase&period; While the loan would allow you to own your bike&comma; don’t forget to buy and <u>renew bike insurance<&sol;u> policy as it is a must for using your new bike on Indian roads&period; A bike insurance calculator can help you in the same&period; Thus&comma; even if you feel that it is an unnecessary expense&comma; it is very important to renew bike insurance so as to ply your vehicle on the Indian roads legally&period;<&sol;p>&NewLine;

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