Things To Know Before Taking A Loan For Used Bike

A two-wheeler is of immense utility to get through every day traveling to work. It can easily go through crowded places and can save up a considerable time for you which public transport may not. Getting a brand new two-wheeler, however, may put too much pressure on your budget. In that case, a second-hand bike can come handy.

With the aid of a second-hand bike loan, you can easily avail the fund for your bike. There are certain things, however, which you will do well to keep in mind.

Different Loan Options

For getting a second-hand bike loan there are different types of loan options which you can choose from. Some of them are as given:

1. Two-wheeler or Bike Loans: Many lending institutions these days provide bike loans for both brand new and second-hand bikes. The loan amount which you will be getting from this option will be provided on the basis of what bike you have chosen.

2. Dealer Finance: Many bike dealers themselves provide two-wheeler loans. Whether it is for a new bike or for a second-hand model you can get a bike loan right away from the dealer.

3. Personal loans: The most preferred option for getting a second-hand bike loan would be personal loans. A personal loan is a multipurpose loan which can be used for many different usages. Besides, your assets will not be put as collateral to avail this online.

With these options, therefore, you can easily get a used bike loan.

Benefits Of Second Hand Bike Loan

There are some benefits of a second-hand bike loan which you can reap. These go as follows:

1. Loan up to Rs. 5 lakh

With a second-hand bike loan, you can get a loan of up to Rs. 5 lakh. Although this will depend upon what bike you are purchasing. But if the amount exceeds above Rs. 5 lakh then the loan shall not be provided.

2. Minimal Documentation

With just the help of your Aadhar card and PAN card, you can apply for a second-hand bike loan. Unlike other loans, this one requires a minimalistic process of documentation.

3. Online Advantage

You can get your second-hand bike loan approved with the help of the online facility. You can either visit the official website of the lending institution or download their app. The digital facility has made getting a second-hand bike loan quicker and easier.

4. Home Based KYC Verification

Even for KYC verification, you do not have to go to the lender’s office or bank to get the process facilitated. The agent will be sent to your home for verification. The point to remember here is that this facility is only available for the online process.

5. Instant Approval

Once all the documents are verified you can easily get the loan approved. The loan amount will be instantly transferred to your account.

Things To Keep In Mind Before Taking a Loan For Used Bike

There are few things that you can keep in mind before getting a second-hand bike loan. These things are important to keep in mind or else you might face problems later.

1. Check the second-hand bike you are purchasing. Look for any damages or spillage the bike may have. Once you have got the second-hand bike loan it will be too late to turn down the bike.

‘Check the bike thoroughly before applying for a second-hand bike loan’.

2. Compare the other bike options and see for yourself if the bike you want to purchase is being sold for a higher price or not.

3. Check all the official papers of the bike to get a thorough knowledge of your second-hand bike.

4. Compare the interest rates of different lending institutions before you decide on a second-hand bike loan. Some financial institutions or banks may offer more credit limits but also a higher interest rate. Opt for it only when you are looking for a second-hand bike model that costs high, else go for a loan with lower interest rates.

5. Maintain a good credit score. With the help of a good credit score, you can get the best offers from different lending institutions for your second-hand bike. Besides, a good credit score also helps in getting different types of loans and increases the overall credit limit.

6. The loan tenure follows a simple mathematical rule. If the tenure for paying the loan is long then the EMIs to be paid per month will be lesser. On the other hand, if you have opted for a shorter duration to pay the loan, the EMIs to be paid will be higher. So depending on your monthly income, you can make a choice of repayment for the second-hand bike loan.

With these important points in mind, you will be able to make the right choice regarding your second-hand bike loan. Depending on your decision, you can use a loan calculator to ascertain the EMI you will have to pay for a specified period of time.

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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