Right Reasons To Take Two Wheeler Loan In India

The Indian society perceives two wheelers as an asset for travelling, especially the middle class. In cities where traffic is prominent, a two wheeler liberates these individuals from the hectic monotonous public transport system. Various finance institutes also make funding for the two wheeler vehicle an easy process. However, before buying this seeming asset, on should consider the few details before taking a two wheel loan.

Credit scores
Your credit scores play an important role in the deciding factor for your two wheeler loan. Most lenders perceive two wheelers as risky, as they can be easily stolen or destroyed in an accident, especially in India. Because of this, the requirements are more stringent with two wheeler loan than with car loans. Ensure that you have not missed any payments during your previous credit repayments, as this may indicate uncertainty from your end, and a possible high risk factor. Always create a budget before you apply for the loan. This may also include the amount, tenure of repayment, and EMIs which can be calculated using the two wheeler loan EMI calculator.

Short tenure
Normally, the tenure for two wheeler loans does not exceed 84 months, which can be as short as 12 months too. Most two wheeler applicants go for a short period as a lender does not charge a high interest rate on a short tenure loan. You can always go for a short loan as it carries a less risk for lenders, as it carries a lower chance of unexpected change in the financial situation which will force the loan into a default status. Calculate the right EMI for you with the two wheeler loan EMI calculator to suit your needs. Comparatively, high monthly payments with a short tenure, means the lender will receive the principle sum faster and you will have to spend less time paying for it. To calculate the right EMI for your loan, you can always use the two wheeler loan EMI calculator that is normally available on the website.

While are various other reasons to get a two wheeler loan in India, there is other variables that influence the decision to take a two wheeler loan. Such factors like having a normal two wheeler to satisfy your basic need for comfortable traveling as compared to a super bikes to satisfy your need for style and class will not only influence your budget, but also your responsibility for the loan repayment.