Do you want to buy the bike of your dreams? Have you decided on the model among buy all kind of motorcycle (รับซื้อมอไซค์, term in Thai)? Making arrangements for the money would be the next stage. Using your savings to purchase a bike is a bad choice. You may benefit from a bike loan. But there are certain things to think about before borrowing money for a motorcycle. You can also use the loans for buying a second hand bike. If it is your first vehicle and you are not willing to spend too much on a new bike, you can go for a used bike. You will require lesser loan amount and will be able to manage your finances better. Let’s look at them now.
What Should You Think About Before Getting a Loan for a Two-Wheeler?
The eligibility requirements change depending on the lender. Make sure you meet every requirement. That will hasten the lending process for you.
Verify your credit rating
Your credit score is calculated by bureaus based on your credit history. Your credit score will increase if you make on-time payments on your prior loans. Additionally, it will give you more negotiating leverage with your lender.
Keep all of your paperwork prepared
To confirm the information you supplied, your lender will request your supporting documentation. You must provide documentation of your identity and residence. You will also be required to give them all of your income-related documentation. Your pay stubs, tax returns, and bank statements will all be part of that. It will save you a ton of time if you have all your documentation ready in advance. As a result, you won’t have to wait weeks for your loan to be approved.
Compare interest rates
Do not choose the first lender you encounter. Do some research. Compare the rates that various lenders are offering. From 9.5% to 17%, interest rates are offered on the usual basis. You can find the most affordable rates by comparing them.
Take into account the additional fees
Well, you have to pay more than just interest. Processing costs will also be deducted by your lender. The lender will determine the differences. Processing costs, however, can reach 3% of the overall loan amount. Be sure to choose a lender with the lowest possible processing costs. You’ll have less financial stress as a result.
Search for seasonal deals
Keep an eye out for seasonal deals and discounts on the website and social media profiles of your lender. During holidays, lending institutions frequently provide interest rate discounts. You will be able to take advantage of these offers if you keep track of them.
Employ an EMI bike calculator
You can effectively manage your finances if you are aware of your EMI amount in advance. You can adjust your future expenses as a result.
Additionally, you can determine the EMI for various loan amounts and terms. As a result, you will be able to select the ideal bike loan for you. Any loan institution’s website will have an EMI calculator.