Articles
What Makes it Convenient to Buy Bike on EMI?
by Navneet Sharma Financial Analyst
Commuting in Indian metropolis is becoming increasingly difficult. Vehicular traffic has grown, and two-wheelers are turning out to be the preferred choice of middle-class travelers who have to commute long distances for work. Bikes are popular with the younger generation also for the style element and their affordability. Bikes can be easily maneuvered through crowded and bumpy Indian roads and occupy much lesser space as compared to cars. Getting a bike loan has now become a lot easier due to clear documentation and speedy processing. All you have to do is fill up a simple form and attach documents like identity proof, address proof and last three years income tax returns to get the loan sanctioned within 24 hours.
The eligibility criterion for getting a loan
The applicant should:
- Be over 18 years of age.
- Be Salaried or a self-employed the individual.
- Meet the minimum income norms required for availing two-wheeler loans.
- Need present/permeant residential address for verification purposes.
The following documents are required while applying for a bike loan:
- Completed application form.
- Recent passport size photographs.
- KYC documents.
- Address proof in the form of a passport, AADHAR card, bank statement, phone bill, electricity bill.
- Proof of identification in the form of pan card, AADHAR card, passport, driving license.
- Proof of income in the form of salary slips, bank account statements, IT returns.
Why EMIs matter
An EMI is a repayment amount which must be paid back to the bank or the finance company every month on a stipulated date to avoid penalties. EMIs make it a convenient option to buy a two-wheeler of your dreams as several lenders offer bike loans at affordable rates. There are no lump sum payments to be made and repayment of the loan through equated monthly installments can ease the burden of buying your favorite bike as you don’t have to worry about arranging finances. You pay for the bike as per your capacity owing to the flexible term of the two-wheeler loan.
Calculating the EMI to be paid
Tenor for paying the bike loan EMI online is fixed as per the paying capacity of the borrower. EMI is decided based on the tenor, amount to be repaid and the interest accrued. Most people are still not aware that EMI is made of up both the principal amount and interest. You can also calculate the amount to be paid monthly with the help of a bike loan EMI calculator - this will give you a fair amount of idea about the repayment plan. Benefits of Paying EMI on time
Paying EMIs on time is crucial to maintaining a healthy credit rating with the lender and the several credit rating agencies. Financial institutions are hesitant to give loans to the defaulters who do not repay the loans on time. Bike loan EMIs can be paid through post-dated cheques, ECS clearing, NEFT, RTGS, IMPS, and mobile banking.
To Sum Up
There is an option of applying online for a two wheeler loan instantly, and in a few clicks, you can check your eligibility for the loan. The simple step-by-step procedure allows you to fill the application form online, select the repayment tenure and calculate the EMI using bike loan EMI calculator. For an unsecured loan, there are no guarantors or collateral. Therefore, the interest rate is slightly higher whereas the is a secured loan as vehicle is hypothecated with finance company thus ROI is lower In the end, there are some exclusive benefits to the customers applying for bike loans which include competitive interest rates, flexible repayment tenure up to a maximum of five years, hassle-free documentation and prompt disbursal of loan.
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Joined APSense since, November 21st, 2018, From Delhi, India.
Created on Nov 23rd 2018 01:43. Viewed 598 times.
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Financial Analyst
