Stylish bikes inspire interest in us to be their proud owners. As a first-time two-wheeler buyer, we often are under the impression that purchasing a bike on EMI (Easy Monthly Installment) is a simple process. This is not so. It requires careful planning, which involves factoring in all relevant EMI repayment related aspects.
Decide Your Affordability Quotient
You need to consider few essential things when choosing to avail of two-wheeler finance. The key factors have been discussed below.
- Down-payment that you can afford.
- EMI amount and loan repayment period (usually one to four years).
Companies that offer loans for bikes have two-wheeler loan calculators on their pages. Type in the loan amount and repayment period, and the EMI value would be displayed on your screen.
- Ensure that you don’t opt for a huge loan just because you think you can afford more.
- Large EMIs would eat away more of your finances in the long run.
- Interest rates vary based on your credit score with a minimum being 6%.
- The longer repayment period would mean shelling out more money as interest.
Decide The Purpose Of Buying The Two-Wheeler
Before buying the bike, you must figure out the purpose for which it would be used mostly. This would help in choosing the bike type with proper ergonomics. The various types of bikes available are as follows:
- General-purpose standard bike: Used almost daily and helps in maintaining correct posture.
- Sports bike: Sleek design focused on maintaining high speeds; you need to lean forward.
- Off-Road bike: It is made for tackling tough terrains.
- Tour bike: Designed for short rides; you need to drive in an upright posture.
- Utility bike: It is made for special purposes.
- Moped: Fuel-efficient smaller bike for covering short distances.
- Cruiser bike: Designed for long rides; comfort level varies from rider to rider.
You can go through bike ergo simulator to choose a bike that complements the posture you need during riding.
Decide The Type of Insurance For Your Bike
You cannot ride on Indian roads if your bike is not insured. Various insurance options that are available include:
- Zero Depreciation: Entire workshop expenditure for repairs would be reimbursed.
- Comprehensive: Offers coverage for theft, damage, etc.
- Third-Party: Reduces personal liability if pedestrians are hurt or property is damaged.
- Personal: Provides personal accident coverage for rider.
- Roadside Assistance: Covers expenses for taking your bike to the workshop when it suffers breakdown alongside the road.
- Custom: You can choose from different insurance options and riders available.
While buying two-wheeler, you essentially have to seek appropriate insurance coverage. This would increase the value of EMI by some degree.
Remember That The Two-Wheeler Would Be Hypothecated
Your two-wheeler loan would be secured. This means,
- The two-wheeler purchased would be hypothecated in Finance provider’s name.
- If you don’t pay the EMIs, the financer will corral your bike for recovering the loan.
Be Ready with Needful Documents
For availing the finance, you need to produce relevant documents that would justify your entitlement for the loan. These include:
- Identity Proof issued by Government of India like Aadhar card.
- Address and age proof, preferably Aadhar, PAN, and passport.
- Income proof, i.e. six months updated bank statement.
- Employment proof preferably on the letterhead of your company.
- Proof of being self-employed.
Usually, the loan would be approved within two business days. The process is made hassle-free by the representatives of the financing company. It is advisable to go for flexible loan repayment tenure as you can pay off the loan within as little as half a year.
Conclusion
By keeping in mind the pointers mentioned above, you can buy a two-wheeler without being constrained financially. Be the proud owner of KTM bikes in India or any brand by managing the financing section adequately and prudently.
Key takeaways include:
- Go for a renowned two-wheeler finance company to have a hassle-free experience.
- Keep all relevant documents ready.
- Use different calculators available online to understand the EMI and ergonomic aspects.
- Select the repayment tenure, which would not be an additional monetary burden on you.
Happy Biking!