5 reasons to Compare Bike Loans?
Bikes have become a popular automobile for all the young generations. With the increase in travel and transportation activities, people plan to buy a bike so that their daily commute can become an easy task. It was difficult to buy a bike in the past as you would need to have full payment to do so. But now it has become a cakewalk to buy a bike.
You can avail a bike loan for getting your favorite or dream bike lone. All you need to do is find the best bike available as per your budget and strike a deal with the bike dealer. Once all this has happened you can get a bike loan applied through the bank you have a relationship with or through a financial institution. Once this has been done, your application would be scrutinized and approved if everything goes as planned. This would help you to get a bike loan disbursed to progress the next procedures.
Reasons to compare bike loans
Bike Loan Interest Rate
There are many banks and financial institutions that offer a bike loan to all. This is a competitive field and you should look at the best options to get the maximum benefit in such competition. The main point of discussion in a bike loan is the cost you would pay to get the bike home and fulfill your loan payment. This cost is inclusive of the loan amount and the interest rate charged upon it. The interest rate is dependent on the bank and the procedures it follows to calculate it. Each bank and financial institution has a different interest rate and you should look for the best one available. It is not necessary that if a bank or financial institution offers a low-interest rate, then it is good for your loan application. It can be duping you in the later stages to get more benefit from you. This can also be a vice versa situation where the loan interest rate is high but at the end of the tenure, you pay less.
Bike Loan Hi
You should check for extra charges if any applied from the bank and financial institution. This can be added at the end of the tenure which can come as a surprise. Therefore, you should ask for a complete breakdown of the loan so that you know how much extra cost you are paying above the bike cost. It would help you to know the exact amount at which you purchased the bike.
See Also: 5 Reasons to compare home loans?
- Loan Disbursement Rate
Banks and financial institutions offer you a bike loan on 90% of the total cost from the dealer. This can be lesser as well depending on the strength of your papers. You may also get 100% loan disbursal if you have a good relationship with the lender company. However, such loans would have a higher interest rate to cover the cost.
See Also: 5 reasons to compare personal loans?
- Cost of Bike
Bike cost is broken down into many parameters such as the ex-showroom cost, insurance, government taxes accessories and much more. This is given by the dealer and you should add all such details to apply for a bike loan. You may be lucky enough to get a bike loan approved including these parameters. But usually, accessories, government taxes, and insurance is not a part of the loan amount. Therefore, you should be vigilant about the loan amount as the difference between the cost of the bike and the loan disbursement amount would be the down payment that you need to pay while booking the bike.
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- EMI Amount
You should know the EMI amount of the bike loan before you apply for it. This would help you to know and plan your finances in advance. You can calculate your EMI before you apply for it by using the bike loan EMI calculator. This EMI calculator is available on the official websites of banks and financial institutions. You can enter all the inputs such as loan amount, interest rate and the tenure to generate the EMI amount. This would not change much unless your inputs change.