It is not easy to travel using public transport and driving a car on roads already packed with too many 4 wheelers is a nightmare. An easy option is riding your own motorized two-wheeler, which can help you weave through traffic and is also easy to park. So, if you are planning to buy a two wheeler, you might be looking for a two wheeler loan to purchase one. Before you do take a loan, remember to ask the following questions to the lender. Take the loan only after you have received satisfactory response for these queries:
- What Are the Steps for a Loan Application?
The first and the basic thing that you need to be clear on is the loan application process. An online application process has become a favoured option as it reduces the hassles of running around. You should ask for all the details that might be required and keep them ready as you fill in the application.
- What Are the Documents Required?
Any loan transaction will need documents to verify whether the person is genuine and has the capability of repaying the loan. You should ask the lender for a list of documents so that you can avoids last minute hassles trying to get a document that is not readily available. Preferably, make a checklist and get it verified by the lender so that there is no dispute at a later stage. Typically, you would require identification proof and proof of your financial standing.
- What Is the Required Down Payment?
Different lenders have different policies for amount eligibility. It depends on your credit score. You can get up to 95% of the value of your vehicle as a loan. The balance needs to be paid up-front i.e. as down payment. Ask the prospective lender for their policy regarding the same.
- How Is the EMI Calculated?
The EMI is calculated based on the rate of interest as well as the tenure of the loan. It is advisable to compare the interest rate of various lenders to understand the way it is calculated. Sometimes, similar interest rates can give you different EMIs depending on how they compute it. You can use online EMI calculators to understand the variation with tenure and interest rate being charged. You should also check on any hidden charges built in to the EMIs.
- Do I Have to Pay a Penalty for Prepayment of the Loan?
Depending on your financial status, you might be able to pay larger instalments and close the loan before time. This could prove harmful for your finances if the lender demands hefty fees in exchange for his loss of interest. It is important to know the terms and conditions regarding the same.
Getting a loan proves to be a different experience with every lender, but if you are vigilant and alert about the questions that you need to ask, the process can turn out to be very smooth. Hope you enjoy the loan process as well as your two-heeler.