How to choose Bank or NBFC for two-wheeler vehicle loan

require bike finance

In 2017, India emerged as the largest two-wheeler market in the world. There were 17.7 million two-wheelers sold in India as compared to 16.8 million units sold in China, the erstwhile biggest two-wheeler market. The key growth drivers including rising incomes, improving infrastructure, an uptick in the number of female riders, new two-wheeler models and easier finance options. 

Financing for two-wheeler can be secured from either banks or non-banking financial companies, among others. Irrespective of whether you require bike finance in Delhi, Mumbai, Bangalore or any city or town, here is how to go about choosing a bank or an NBFC for a two-wheeler vehicle loan

Conduct online and offline research

Most individuals conduct online research and compare offerings by different lenders. However, it is also a good idea to visit the lender’s nearest branch to discuss what they have to offer. Sometimes the information on an aggregator’s portal might not be updated. Therefore it is better to talk to the customer care executive to get the correct facts.

Conduct a credibility check

You can read reviews about lenders offering two-wheeler vehicle loan online. You can also speak with individuals in your network who have taken a two-wheeler loan to get their views on which lender to select. This information would play a critical role in helping you to refine your list of prospective lenders and avail of the best two-wheeler loan.

Compare interest rates

The interest rate largely determines the overall amount you have to repay. Lower the interest rate lower would be your EMI. Therefore, you would need to compare the interest rates offered by multiple lenders. Most major lenders reveal interest rates over the internet. 

Evaluate overall offerings

Repayment schedule, quick approvals, eligibility and paperwork, are important aspects to consider while applying for a loan. Depending on your ability to repay, the lender should be able to offer a flexible repayment schedule ranging from 12 to 48 months. You would want your loan to be approved as quickly as possible. You may be inclined to work with a lender who makes documentation hassle-free. 

Use the EMI Calculator

Before taking a loan, it is important for you to provision for repayments. You can access any online EMI calculator and input the required variables such as loan amount, interest rate and tenure. It will help you determine the EMI. Online EMI calculators make it possible for you to try out different combinations of input variables and figure out the EMI for all those combinations. Once you are aware of the EMI to be paid it would become easier for you to ascertain whether to go ahead with securing a loan or not

Check out whether there are any offers or discounts

Most lenders may be willing to provide special offers or discounts even during the non-festive season. You would need to enquire with them about the same to receive the relevant details. Some examples could include: waiving off the processing fee or pre-closure charges. 

By following the steps listed above, you would be able to secure the best two-wheeler loan for yourself.