When the COVID-19 pandemic hit the country, public transport travel was the first to be banned because of its high risk of infection. This had quite an impact on people’s routines. Commuters were forced to drive or cycle to work.
Two-wheelers have been gaining tremendous popularity for the past few years. Much of its popularity stems from the fact that you can easily navigate heavy traffic and always have ample parking space. Besides that, two-wheelers are also an economical mode of commute.
Driving a two-wheeler offers you a lot of advantages. One of the biggest reasons is that you can always find on-street parking, even in the heart of the city. Parking your car, on the other hand, can be an absolute nightmare as you’ll have to spend half an hour or so looking for a spot.
Another reason why two-wheeler owners feel superior to four-wheeler drivers is that they don’t have to stand in long queues at bus stops with the rest of the COVID-19 pandemic sufferers.
Below are a few critical points you must ensure before going for two-wheeler loans.
Type Of Two-Wheeler Loans
Scooter loans are not the same as ordinary loans. That’s why it’s essential to know the difference. Secured scooter loans require you to pledge an asset as collateral. This means you need to have a vehicle of the same value as your loan.
On the other hand, unsecured scooter loans do not require you to pledge anything. If you are dreaming of buying a two-wheeler but do not have the necessary funds, a bank loan can help you realize your dream.
While banks offer various loan schemes, there are specific points that you must prioritize if you want to get the best deal. On the other hand, if you want to buy a bike on EMI, this post will help you get the best interest rate on two-wheeler loans in India.
Type Of Interest Rate
When you apply for a scooter loan, you will have the option to choose two-wheeler loans interest rate based on your preferences. However, you will have two choices available – floating and fixed rate of interest.
In the case of a floating interest rate, the interest rate is subject to fluctuations based on factors like the market condition, loan amount, credit score, and the EMIs paid. Therefore, not every lender offers a floating interest rate.
A floating interest rate is more flexible than a fixed one. However, fixed rates are also often available for borrowers to avail [without/with] certain conditions.
Choosing between a floating and fixed interest rate for your two-wheeler loan is a typical problem that borrowers face. While one term may suit you better, it boils down to your financial requirement that determines how you should apply for your loan.
Repayment Tenure
The repayment tenure is one of the most important criteria for applying for a scooter loan online. It’s the period between the date of your loan disbursement and the date on which your entire loan amount has to be repaid.
Since it also depends upon your repayment capacity, loan duration ranges from 12 months to 60 months, depending on your repayment capacity and income.
Conclusion
The scooter loans facilitate us to fulfil our dream of having a scooter/motorcycle. The loan does not involve tedious formalities and thus speeds up the application process. All you have to do is approach an authorized dealer and ask for details about a Honda financially approved loan plan.
You can find out the eligible amount of your motorcycle in various ways. First, they will investigate your income and credit history to see if the bank approves you for a scooter loan. Then, when you understand the loan application process, you will be better prepared for the entire process.
Therefore, it is always better to look at a lender’s website before doing business with them.