Finding Bike loans can be a daunting task for the buyers because there are many options available on the internet. Majority of customers get confused and fall into the lure of low interest rate advertisements. Loan approval is a time consuming process and depends on multiple factors. You need to follow certain tips and tricks so that the loan can be obtained on the requisite terms and conditions.
How do you avail the bike loan at low interest rate?
There are many financial companies and banks available which offer hassle free bike loan and you can avail these loans from the bike dealers also. Most of the bike-showrooms have tie ups with some selected finance consultant and they offer any bike loan instantly. But if you want to avail the bike loan at low interest rate then you must select the bike model according to your budget. Then you can visit the particular branded showroom and select the bike accordingly. Afterwards you can get the motorcycle loan from the finance consultant, or from banks and companies. Before taking the loan you must compare several companies and their documentation process.
Some financial companies charge low interest initially but they can charge a large amount as penalty. So verify all these factors because if you fail to repay the monthly amount timely then the additional penalty charges should be levied. Verify the following factors carefully:
- Loan processing charges should be low and some of the financial services offer zero processing charges also. So avail the loan from these companies.
- Rate of interest should be charged as the reducing amount and it could not be dealt at a flat rate interest.
- If you want to prepay the loan before the scheduled period then you can easily close the loan without any additional charges.
- One time penalty charges can be waived or it can be less.
- The loan services should be incorporated with all important documentation and they should issue the monthly statement. Else you can check your loan status from their online portal.
- There should be a provision to make the payment online. The regular EMI can be deducted from your bank account on a particular day of each month.
- They should have 24 hours customer cell which can assist you regarding any issues of your loan at any time.
The monthly bank statement and financial issues:
The bank account and the monthly salary statements are also important as they provide sufficient information about the repayment capacity of the customers. Even if the credit score is low, the job stability and income earnings over the past years extremely help in the sanction loan without any problem. Studying the credit report in detail helps you to assess the chances of getting attractive interest rates for buying the vehicle. It is a well known fact that lenders consider the motorcycle as a risky asset as compared to the car because it is liable to get easily stolen or more prone to accidents.
- Therefore, the requirements of the lending are very strict and even a small blot on the credit report can lead to the cancellation of the loan application.
- In order to improve the score, pay off the credit card and other outstanding debts on time. It is bound to improve the chances of the customers in obtaining loan on concessional terms.
Buying motor cycle with credit card is advantageous for the customers because there are no credit checks and pre payment penalties. The interest rates might fluctuate based on the market movement or on the credit history of the individual. Comparison between the options of dealer financing and OEM financing is essential to arrive at the final conclusion.
If you carefully consider the above mentioned tips then you will able to get best bike loan. Click here for further information about bike finance.