Best Quora Answers on Two Wheeler Loan

Question: What should you keep in mind while taking a two-wheeler loan?

Answer 1: Now that you have decided to obtain a two wheeler loan, here are specific pointers to guide you before signing up with any bank.

1. Get the best interest rates

Compare the interest rates and overall costs through thorough research before signing up with any lender. Your income, credit score, assets, and liabilities play crucial roles in determining your eligibility for two-wheeler loans. However, specific financial platforms such as Muthoot Capital provide loans for income, no income base, and asset proof base.

2. Avoid Over borrowing

Calculate the EMI that you can afford and adhere to it. Over borrowing shoots up the monthly EMIs, thus thwarting your monthly budget plans.

3. Devise your repayment plan

Workout your repayment plan and adhere to it. Choose  2 wheeler finance that offer Low down payment and EMI schemes harmonizing with customer’s financial requirements.

4. Choose hassle-free, quick approval loans with simple documentation needs.

Once you have selected your dream vehicle, you don’t want to get tied up with paperwork and lengthy waiting periods. Go for a loan that has minimum processing time and simple documentation requirements.

Source URL - https://www.quora.com/What-should-you-keep-in-mind-while-taking-a-two-wheeler-loan/answer/Sandip-Gupta-200 

Answer 2: A2A thanks

The dealers usually offer you the interest rate which is around 6–7 %. What they may not tell you is that it is flat interest rate.

The banks calculate interest rate around 14–19%. This is at calculated by reducing balance method. Usually, this is at lower rate than the rate offered by the dealers. So do a thorough calculation before you sign up.

Next you should be aware that both these loans will have a hypothecation (h/p) note on the RC BOOK. Now it will involve you some time and a cost to get this h/p cancelled on the RC book.

You'll not be able to sell the bike before cancellation of R/C.

If it is possible for then try making as much payment as possible, rest you can check if you can take a person loan. This can come at lesser cost.

If you're unable to make a payment but really want to purchase a new bike, speak to your bank. They may be able to offer you 100% loan.

All the above is subject to your cibil profile (credit checks). Along with it you need proper KYC, Aadhaar, Passport, Voters Id, pan card, etc.

Also check if your bank is offering you a better insurance. The bike insurance falls under general insurance. It's highly likely that you may be able to save around 3–5% extra compared to the showroom's or dealer’s quote.

Invest quality time in comparing all the above points. After all, it's your hard earned money. If your dealer isn't accepting outside insurance, speak to your bank. They have tie-ups at the dealership.

Let me know if you need any more details. Feel free to ping me if you're looking for loan and still have any queries. I'll be happy to assist.

Thank you

Source URL: https://www.quora.com/What-should-you-keep-in-mind-while-taking-a-two-wheeler-loan/answer/Siddhesh-Shirwadkar-2