A Two-Wheeler is one of the essential things to have these days. It helps you get through traffic, reach your destination faster, is more affordable than a car, and has many advantages. Thus it is important to choose the perfect loan tenure for it. It is also pretty crucial for one’s finances. With the wrong choice, you could end up spending unnecessary extra money without even realizing it.
Things to keep in mind while making loan tenure choice:
- The most important thing while taking a loan is to choose the correct lender first. There are many lenders out there, and it is essential to narrow it down to the one which interests you best and whether to keep it fixed or floating. Some lenders provide you with special offers too, so that it helps attract more people, you could take advantage of such a situation.
- Choosing the correct tenure becomes very important. A long term tenure and a short term tenure, they both have their advantages and disadvantages. Although short term tenures have more pros than cons.
- If you absolutely have to pay with less EMI only then should one opt for the longer tenures? But if comparatively-higher EMIs for the short term is affordable, it will be an ultimately less significant deduction from your pocket.
- Eligibility for the loan is a big factor to keep in mind too. Every lender has its own criteria for determining who’d be an eligible candidate for a loan.
How to make a tenure choice for a Two-Wheeler Loan:
If you can spend a bigger amount from your monthly income or savings, it is better to opt for a short term tenure, and because letting a person choose a long term tenure is risky for the lenders and banks, they increase the EMI rates for the short tenures. One can go for the zero down payment loans, but for those who cannot opt that, it becomes necessary to decide what is going to be better for their bank balance.
For a longer tenure, the EMI is often low, but when it is stretched on for a long period of time, the extra cost supersedes that of short-term, comparatively higher EMI loans.
One should keep in mind their financial status for the period of tenure. For a Two Wheeler Loan, the payable amount could range from Rs.25,000 to Rs.3,00,000 or even Rs. 4,00,000 based on the two-wheeler being bought.
One easy way to determine the best tenure for you is to use a Bike EMI calculator.
What is a Bike EMI Calculator?
A Bike EMI Calculator is an effortless way to determine the EMI for your two-wheeler. It is a fast and easy way to get your EMI status after you enter the loan tenure, interest rate, and down payment. You can easily find a Bike EMI calculator online. Some even show you the best options for your two-wheelers or what lenders to go to.
There may be some extra processing fee involved in the process that these calculators don’t often show, so that has to be kept in mind too. Overall it can help you decide how to make the best choice. Some people also opt to go to their local dealers for advice, while others depend on these calculators.
It all comes down to how to make a customer happy. So if you can find a lender that gives you a great deal which you can easily afford, go for it! And have the bike of your dreams in your parking space.