As the national capital and a critical economic hub of India, New Delhi no doubt witnesses some of the highest demands across sectors and industries. Given that the lifestyle of city residents is usually aimed at the best and finances sorted, the demand for loans and advances remains high too for easy funding. In the case of purchases like two wheelers too, the demand for bikes is among the highest in New Delhi as against all Indian cities. Simultaneously, there has also been a rise in requirement for two wheeler loan in New Delhi.
These loans are secured advances that lenders extend against hypothecation of the purchased bike. The financing arrangement thus reduces the lender’s risk involved, making the loan affordable for people across different income categories. One must, nevertheless, be well-prepared for the financing and consider all aspects before applying for the advance. Below given are a few essential considerations you can make before finalizing your loan.
Top Considerations to Make when Availing a Bike Loan in New Delhi
- Type of loan arrangement
Bike loans in New Delhi are presently available under two different financing arrangements that one can choose from for maximum financial freedom. The first is the traditional loan arrangement that people usually agree too. Under this arrangement, an individual needs to make a certain down payment towards bike purchase and the rest of the vehicle’s cost is financed through a loan.
In the second loan arrangement, lenders provide financing with zero down payment. It means that you can avail funding for your desired bike model purchase without needing to pay any amount as down payment. It thus assures 100% EMI-based financing of a two wheeler loan in New Delhi. Both these loan arrangements come with their sets of benefits, which you can choose from depending on your suitability.
- Credit score requirement
Lenders expect one to fulfil a minimum credit score requirement for all types of loans, which may or may not be essential for each financing option. In the case of bike loans, the requirements are the same too, albeit with a little difference depending on the type of loan you avail.
As mentioned in the previous point, you can avail these loans under two different arrangements. In the case of 100% bike financing, however, the lender’s risk in funding increases a notch due to the increased funding. One may thus be required to necessarily meet the minimum credit score requirement along with other criteria for such funding to succeed. Usually, the minimum credit score requirement for this loan arrangement stands at 700.
- Eligibility criteria and documentation
The eligibility requirements, while remaining standard for some criteria, may vary from one lender to another for other criteria. Accordingly, the document requirements from different lending institutions differ too. Thus, once you have finalised the lender to borrow your bike loan in New Delhi from, you can proceed to check if you fulfil all their eligibility and document requirements or not.
- Interest rate applicable
Your overall loan affordability depends significantly on the interest rate levied by your lender. Given the increasing competition among financial institutions, the rate levied can vary from one lender to another. You must thus take care to consider what is the rate levy on your loan offer. Compare available lenders to find the best interest rate on your bike loan in New Delhi. Also, check out other applicable charges so you can keep the overall affordability in check.
- Tenure flexibility
Along with the bike loan interest rate, the tenure applicable to the advance also determines the EMIs that you would need to pay towards loan liability repayment. Make sure to consider if it is flexible enough for you to accommodate your EMIs within your financial capacity and choose lender accordingly.
A two wheeler loan in New Delhi is easily available online today and you can complete your loan application is just a few minutes from the comfort of home. Just keep all the required documents ready before applying for an easy and streamlines processing.