An affordable commuting experience starts with purchasing a two-wheeler vehicle. Therefore, many people buy a 2-wheeler bike or scooter in the initial stages of their life. In addition to saving money on fuel, two-wheelers are easier to maneuver in heavy traffic. It is also much easier to park 2-wheelers than cars. Therefore, it is wise to buy a two-wheeler. If you are short on funds, a bike loan can ease your financial worries. Read on to learn more about bike loans and how to get instant approvals for the same.
What Is A Bike Loan?
A bike loan is an unsecured credit product that allows borrowers to purchase their dream bike. They don’t have to worry about the immediate financial burden of the purchase. The loan can be flexibly repaid in easy EMIs as per the borrower’s repayment capacity. For availing of a bike loan, an official agreement is signed between the borrower and the lender. The lender agrees to provide the required funds to the borrower for purchasing the bike in this agreement. The borrower has to comply with the repayment terms and conditions associated with the bike loan. Choosing the right EMI amount is crucial to avoiding default on loan repayments.
Why Do People Prefer Bike Loans?
The popularity of bike loans in India is immense, which speaks volumes about its utility. There are various advantages of taking a two-wheeler loan, making it a standard financing option among bike enthusiasts. Let’s take a quick look into why bike loans are so popular.
- Eliminates financial burden
Financing the purchase of a new bike using bike loans eliminates the immediate need to arrange money. With a loan, people can consider going slightly over their budget and buying the 2-wheeler of their choice. The flexible EMI repayment plans help borrowers manage their expenses without undue strain.
- Don’t have to dig into savings
Most people keep aside money for emergencies. A bike loan removes the need to dig into your emergency funds. It also adds a sense of security and mental peace to have savings intact.
- Improves credit score
A bike or any other loan can help improve your credit score, given that you comply with the repayment terms and conditions. Not defaulting on monthly installment payments can improve the borrower’s credit score. However, failing to repay the loan timely can hamper the creditworthiness.
- Zero down-payment loan options
Most people wouldn’t believe that they can purchase a bike with zero money. However, using a zero-down payment loan option, it is possible to finance the entire purchase. The majority of lending institutions offer a Loan to Value (LTV) ratio between 75 to 90 percent. However, some lenders can even offer up to 100% financing.
How To Get Instant Bike Loan Approvals?
The modern-age financial system is highly consumer-oriented and aims to address all pain points of customers. Traditionally, loan approvals used to take weeks, if not months. However, lending institutions like Fullerton India have made instant loan approval possible. One can get a loan approval within 24 to 48 hours if they meet the eligibility requirements. Here are some practical tips to get your bike loan approved instantly. Be mindful while filling in the application form, Check the eligibility requirements beforehand, and more. Read in detail below.
- Be mindful while filling in the application form
Not filling out the application form correctly can lead to rejection and stretch the loan approval process. Always aim to provide the most accurate details backed by relevant proof. You can always reach out to the customer support team of the lending institution to address any queries.
- Check the eligibility requirements beforehand
Lending institutions that lend money have a clear-cut minimum eligibility criterion. It is created to weed out unwanted loan applications and reduce the bad debt risk. Meeting all eligibility requirements is crucial to expediting the loan approval process.
- Maintain a healthy credit score
Maintaining a healthy credit score above the minimum requirements is recommended. It will not only aid in getting the instant loan approval but will also help get a better deal. A high credit score translates into better credit worthiness. A high credit score applicant will always get a lower interest rate as the risk involved for the lender is lower.
- Timely submission of the required documents
Timely submission of the required two-wheeler loan documents is a must to cut down the approval timeline of the bike loan. Today, most lending institutions accept an online application and a digital copy of the required documents.
Opting for a bike loan is a great way to finance the purchase of a new bike. This is a quick guide on how to get instant bike loan approvals. Following these tips will expedite the approval process and help you get your bike loan approval in no time.