Two-wheelers are the most convenient means of commuting through the hustle of everyday traffic. With changing times, applying for two-wheeler loans have become equally convenient as well. A two-wheeler loan is the most accessible financing option for buying a two-wheeler quickly. The loan application procedures have become simpler, and the schemes are customised for two-wheeler buyers.
While it is easy to apply for a loan online, knowing what needs to be done in advance will help you finish the buy a bike on EMI smoothly without any hurdles. So here are the things you need to do and shouldn’t do while applying for a two-wheeler loan.
Do’s
Check Your Credit Score
This is a crucial step to follow before applying for two-wheeler loans. Credit scores are essential in offering you the best deals on your two-wheeler loans. Most two-wheeler loans are unsecured loans; hence credit score advocates your credibility on timely repayment.
Check Eligibility
Checking if you meet your loan eligibility criteria before applying for a loan will save your time considerably. The two-wheeler eligibility criteria are simple.
The essential eligibility criteria are
Age: The applicant’s age should bebetween 18 and 65
Annual income:
Salaried individuals – Minimum salary of 96,000
Self-employed – Annual profit of 1,20,000.
If you satisfy the above two eligibility requirements, you can easily avail of a loan with Muthoot Capital.
Muthoot Capital offers the lowest eligibility criteria in the market. It is also necessary to apply for loans that you qualify for. It will lead to seamless approval, elevating your credit score and aiding you to get the higher loan amount without paying higher interest.
Calculate your EMI
Before applying for a loan, you need to calculate your loan affordability. Your monthly EMI decides the affordability of the loan. If your EMIs exceed your monthly budget, it is difficult to pay your EMI and negatively impact your credit score. Using an EMI calculator to calculate your EMI in advance will help you arrive at affordable EMIs by selecting a particular tenure that will not stress your finances. The free calculator is easy to use and help you calculate your monthly installments in an instant.
Get A Co-Applicant
If you do not qualify your preferred lender eligibility criteria, adding a co-applicant will help you obtain better deals.
Don’ts
Avoid Applying for Multiple Loans
Applying for two-wheeler loans with multiple lenders will result in several hard enquiries. Each hard inquiry will temporarily make the credit scores drop, eventually resulting in all the loans getting rejected due to low credit scores.
Avoid Errors in Your Application
Fill out your application form correctly without missing any relevant field is imperative for speedy loan processing. Many loans have been rejected due to discrepancies in the application form, and the errors in your application form cost you time delays and hassles. In case of doubt, taking help from our company representative will help complete the process smoothly.
Never Skip Your EMIS
Defaulting on payments will bring down your credit scores drastically. This will make it difficult for you to take other loans in future. Make sure to set timely reminders for payments or avail of the auto-debit more so that you do not have to worry about missing out on EMI payments.
Do Not Overborrow
Borrow the amount you can repay without difficulty. There are times when a bike isn’t affordable to you, but you end up buying it, which will burden your finances. Calculate the exact amount you require and check if it is with your budget by calculating the monthly EMIs using the EMI calculator. It will save you financial stress later.
To Conclude
Following the above tips will help you buy a bike on EMI with a simple loan application process. Lastly, going for a trusted finance company like Muthoot will help you get a loan instantly at a comfortable interest rate and tenure. Well known for the best schemes and excellent customer service, you can be at peace if your bike loan is with Muthoot Capital.
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