Getting a two-wheeler loan to purchase a new bike is easy and probably a better decision as compared to paying the entire sum, upfront. However, regardless of the credit line, you take or the bike you purchase, selecting the loan tenure is of paramount importance. Loan tenure associated with two-wheeler finance must be finalized after taking the financial aspect into account. Be it making arrangements for prepaying the loan amount after a few years or selecting EMIs based on your existing salary structure, the loan tenure is subject to detailed analysis and preferential selections.
In the subsequent sections, we shall take some of the most important aspects into account that can impact your choice of tenure, which in turn has a bearing on your Two wheeler loan online approval chances.
- Evaluate your financial standing
When it comes to selecting the loan tenure, a shorter timeframe can increase the monthly payment threshold, thereby putting a lot of pressure on your short-term finances. Longer tenures, on the other hand, can be equally frustrating as you end up paying a lot of money, owing to the accrued interests. Therefore, your tenure selection approach must aim to strike the perfect balance between duration and monthly repayment possibility.
- Be Mindful of the Interest Rate
If you want to have the flexibility of selecting loan tenure as per your financial independence, it is necessary to first compare lenders and opt for the one offering the lowest possible interest rates. Once, you get a good deal on the interest rate, it becomes easier to feed in the details in a two-wheeler or bike loan EMI calculator to find the monthly EMI, based on your tenure preferences. Moreover, this approach helps you identify the perfect tenure that is in sync with your salary and even increases the chances of approval.
- Identify the Principal Amount
As is the case with any loan, the principal amount can be used to select the perfect loan tenure. For instance, if you are seeking almost the entire bike value as the loan amount, any interest rate will accumulate sizably as you would automatically opt for a longer tenure. However, if you choose to offer a down payment of almost 20 to 30 percent of the bike value, it becomes easier to pay the outstanding sum within a smaller timeframe.
- Evaluate Long and Short-term Goals
Selecting the loan tenure needs to be a strategic process. For example, if you have several short-term financial commitments to take care of, you must opt for a longer tenure to minimize the immediate repayment burden. Once the pressure recedes, you can always save money to prepay the outstanding balance at no additional charge.
Similarly, if you have a marriage or any other distant financial emergency to prepare for, paying off the loan by opting for a shorter tenure is a better option which allows you to be financially independent only after a short span of time.
- Choose Wisely
The loan tenure also depends on your choice of bike. If you have a decent salary slip to rely on, you might not have to extend the tenure beyond three years even for a dream bike. Besides, your loan tenure and subsequent EMI structure must also take fuel consumption, two-wheeler maintenance, and other aspects into account.
Overall, your bike loan tenure selection can readily impact your chances of online and offline approval. Regardless of the segregation, the EMI structuring and repayment amount must be in sync with your short and long-term financial well-being, to make the purchase worth your while.