5 Smart Tips to Funding a Two Wheeler Purchase

Funding a Two Wheeler

Introduction to Funding a Two Wheeler Purchase

As traffic jams have become more prevalent in our lives, more and more people are leaning towards two-wheelers as their primary means of transportations. Two-wheelers make swerving through traffic a breeze and lets you reach your destination on time every time. As two-wheelers save time and are also economical, they are prevalent in India. Here are the smart tips to funding a Two-wheeler purchase:-

Tips to Funding 2 Wheeler Purchases are – 

 

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The Two-wheeler itself

Two-wheelers come at various price points and can cost from a few thousand to multiple lakhs of rupees. If you want an economical option, a gearless scooter is also a significant investment as they are easier to maintain and can easily navigate through traffic in the city. On top of that, they are cheaper too. With their unisex nature, everyone will be able to use the scooter to reach wherever they feel. 

On the other hand, bikes are more sturdy and can take you over longer destinations with ease. They are more potent than their scooter counterpart but are a little more expensive to upkeep. Get something within your budget and choose a vehicle that will benefit the whole family.

Fix Your Budget 

You need to have a budget in mind, and then you need to tally it with your disposable income. You should have enough money left with you after the EMI has been paid to live the rest of the month with ease. 

If you are not comfortable with high EMIs, you opt for a longer tenure. This eases the financial burden on you, and you will have plenty of time to return the money too. Even if you can self finance the bike, it is advisable that you pay a downpayment and then takes out a Bike Loan on the vehicle.

New or Second Hand

Once you have settled on the two-wheeler you want to buy, you can either buy it first hand or second hand. What this means is that you can, in most cases, get the same model that you want in the second-hand market for a lower price. The condition will be the mint of the vehicle, and nobody will tell that this is a second-hand vehicle without close inspection.

This decision is based purely on your intended use and purpose of the vehicle. If you want it for shorter distances and won’t be your primary vehicle for long rides, then a second-hand car would suffice. But if you plan to use this bike or scooter daily and for long trips, we would suggest that you go for a New Vehicle. 

Credit Score

Your Bike Loan Interest Rate will depend a lot on your credit score. People with a good credit history and score will get a lower interest rate than someone who has a shady credit history. Even though the bike loan is a loan secured against your bike, your credit score affects whether you will be lent the amount or not. Good Credit score will always help you, and if you have ever defaulted on a loan before, a new loan is a great way to make your credit history right.

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Plan Ahead

You should plan your purchase well ahead in time and must save enough for at least a downpayment. There are 90-100% financing options available, but these add a financial burden, but they can also make or break your credit history. It is wise to save enough money so that you have no problem paying an EMI even if your salary is delayed. A healthy bank balance will lead to a smooth translation between you and the loan’s lender, which is always appreciated. Before applying a bike loan it is a good thing to calculate bike loan EMI with Online Bike EMI Calculator.

Also, calculate variable costs like that of fuel and regular maintenance. This will help you decide how much of your disposable income is needed to pay off the EMI and take care of your bike. Don’t forget that with the bike you’ll have to buy additional gear like a helmet, which is a factor in these costs.

Must Read- How to Drive Motor Cycle carefully?

Documents

Before Applying a Two Wheeler Loan keeps your documents ready. For Salaried and Self Employments documents little bit differences.
Here are the complete details:

A. Salaried person:

  • ID Proof: Passport /Photo credit Card/Pan Card /Driver’s License /Voter’s ID/Aadhaar Card/ Identity card with applicant’s photograph issued by Central/ State Government Departments, PSU.
  • Two recent passport size photographs
  • Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. / Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
  • Last 3 month’s salary slips/ Form 16/Latest ITR
  • Last 3 month’s bank statement is mandatory
  • apply for a two-wheeler loan

B. Self Employed:

  • ID Proof: Passport /Pan Card/Driver’s License/Voter’s ID/Aadhaar Card
  • Two recent passport size photographs
  • Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. (All banks except corporation bank)/  Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
  • Latest Income Tax Return (ITR)
  • Last 3 month’s bank statement is mandatory

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