You may be a passionate biker and for that you have planned to buy the latest model of bike. However, one of the major factors you need to take care of is the price. It is obvious that the latest model of bike will have a high price, and in some cases it may also be out of your budget. Well, you will be happy to know that the option of bike finance is readily available for you. In today’s date, finance is available for almost anything you want to buy. Hence, the availability of bike finance is not a problem.
Enjoying the Benefits
With the easy availability of bike finance today, it is possible to enjoy loads of benefits.
- You can get the loan for bike of your choice within a very short time. Banks and other institutions take a very short time to sanction the loan, and you get your bike.
- There are chances for you to get loans at low interest rates and get flexible options of repayment. As a result, you will not have to take any additional stress.
- The processing of the loan is completely free from hassles.
- The documentation required for these kinds of finances are very less
- You can also calculate the interest rates, the monthly payments and the down payment that you need to make. This needs to be done before you even apply for the loan.
An Idea of This Finance
The idea of bike finance maybe new for you, and in that case it is obvious that you will have lots of questions about it. Here is a list of some information for you.
- This kind of loan can be either secured or unsecured.
- If you opt for a secured loan, you will have to pledge collateral. However, the rate of interest is generally lower.
- If you opt for an unsecured loan, you will need to pay at least 15% to 20% of the cost of the bike as down payment. The interest rate applicable is also higher.
- The interest rate varies based onthe tenure of the loan. Hence, if you repay earlier, the interest rate will be less.
Now that you have acquired ideas on these loans, you can decide the type of finance you want to obtain.
Finding a Lender
Today, the market is flooded with large numbers of lenders that are ready to offer bike finance. However, you will have to choose the right lender who can ensure that your requirements are fulfilled within your budget. Therefore, you should research thoroughly and find someone reputed. The lender should communicate everything to you, and you should have a written contract. This will ensure that there are no hidden charges of which you might be surprised later. If you want, you can compare the rates charged by different lenders along with other terms and conditions. The combination of these things will ensure that you get the best deals.
Obtaining the Loan
Prior to obtain the bike finance, you should ensure that you meet certain terms and conditions.
- At the time of application, you should be of at least 21 years of age as a salaried person and by 60 years of age you should have repaid the loan.
- You should have resided in the city you are applying for at least a year.
- You should have worked at least a year and stayed at the current residential address for a year.
- You will even have to provide your income proof so that it ensures that you are capable of repaying the loan.