Are you planning to buy a motorcycle but facing trouble with the funds? Loans are at your way to help you give colors to your dream. Today a number of public and private banks are offering bike loans to help people to have their own vehicle. The applicants have to meet certain criteria fulfilling which will help to draw the loan. Coming to the repayment structure, the same is done on the EMI or Easy Monthly Installment basis at a pre-decided rate of interest to the bank. But there are a number of things that you need to consider before selecting a bank for the loan.
5 Factors to Consider For A Bike Loan:
According to financial experts, when you are taking loan it is recommended to read the offer documents very carefully so as to avoid problem on a later date. This article brings to you all the essential factors that you need to keep into concern when searching for the best financial institution for bike loan. They are:
- Rate of interest:
It is the most essential factor that you need to consider when adhering with your search for a bike loan. The total amount you are spending for bike will depend on it. Higher the rate of interest, higher will be the amount you have to pay to the bank offering you the loan. That means more interest will increase your budget. Hence financial advisors suggest going for institutions offering loans at lower interest rates.
You need to pay the financial institution some fees for accepting your loan application and granting the amount. Though these fees are not mentioned in the loan document as the rate of interest, you need to conduct a research on the same to find out the institution charging low. Beware of fraud agents as they lure you with low fees or sometime no fees and end up charging higher rates of interest.
- Security for the loan:
Some institutions ask for some mortgage against the loan. While financial institutions, keep the motorcycle itself as security, others may ask you for some additional security depending upon the loan value. In case you are unable to pay back the loan amount or break the agreement, then your security value is confiscated by the institution that has lent you the sum. For the flexibility of unsecured loan, be ready for preparing high return rates.
- Loan inclusions:
When searching for bike loan, ensure that it covers everything you are in need of. Most of the financing companies and bank limit the amount of loan taking into concern the cost price of the motorbike you have decided to purchase. So, in case you are planning to include accessories and apparels as well as any other extended cost within the loan, don’t forget to check whether the lender is ready to offer the same before finalizing the deed. Violation of this will lead you to ending up with a hefty bill at the store.
- Termination at an early date:
A time period is assigned to the borrower by the financial institution offering the loan for repayment. Till the termination date, you will have to clear off the debt in EMIs along with the interest. But if you make the payment in lump sum at one time or in two installments, this will lessen the rate of interest on the loan.
Taking into concern all these features will help you to find out the best bike loan offer from the best institution.