Home » Things to check before applying for a two wheeler Loan in Bangalore

Things to check before applying for a two wheeler Loan in Bangalore

by Alinamass
two wheeler Loan in Bangalore

Bangalore is popular as it is one of the major IT hubs of India and if you are a resident of this place, you will find that commuting in public transports is quite expensive. So, you can plan to purchase a two-wheeler if you want a convenient, fast and comparatively cheaper option of transport than a car. If you do not have the required funds to make the entire payment at one go, you can apply for loans either with a down payment or at zero down payment. However, there are certain things that you should check while applying for a two wheeler loan in Bangalore. Read on to know about them in details.

Things that you should check while you apply for bike loan:

  • High value loans provided by lenders

There are several lenders who provide high value loans for two-wheeler purchase. You can select a specific bike model and check the amount of loan that they are willing to offer. Since the price of good quality bikes can go up to several lakhs, you have to decide on the amount of loan that you would apply for and the down payment that you would be able to make.

  • Flexible tenure of loan repayment

You should try looking for flexible loan tenure or repayment term for a two wheeler loan in Bangalore. Reputed lenders offer flexible tenure, so that you can get an extension on the repayment period. two wheeler loan in Bangalore his would help you to pay back the loan amount along with interest without any stress and over a longer period. There must be several other expenses that you have to carry on along with loan repayment and you should not feel over burdened.

  • Zero down payment loan or 100% financed bike loan

A feature that would be beneficial for you is zero down payment loans as you do not have to make any upfront payment. This is convenient as you can purchase a bike if you require it urgently but do not have the required fund at that moment. The lender may put in stricter eligibility terms, in certain cases.

  • High Loan to Value (LTV)

When you apply for a secured loan, the lender would find out the maximum percentage of the asset’s price that he would offer as loan. This is known as LTV or Loan to Value ratio and depends on various risk factors. For example, if the LTV of your bike loan is 80%, you would have to pay the remaining 20% of the value as down payment. Some lenders may offer a high LTV of up to 90% on your bike loan. So, the higher the LTV, the better it would be for you.

  • Easy repayment options

Look for easy repayment features that have multiple options available. For example, along with the EMI repayment, some lenders may allow lump sum repayment as well. This would help you in making a good amount of savings. There are also options of loan foreclosure and part-prepayment for bike loans. But you may be able to go for these options only after you pay up a minimum number of EMIs.

  • Interest rates

Affordable rate of interest and other charges are other features that you should check while you apply for loans. There may be seasonal discounts on loans also and festive loan offers by lenders. Try to avail loans during these times, so that you can save on the loan expenses.

While applying for two wheeler loan in Bangalore, look for certain features that would make the burden of loan repayment easy for you. Flexible loan tenure, low interest rates, high LTV ratio, etc. are certain features that you should check before you finalise the deal with a lender.

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