Applying for a bike loan online is convenient if you are aware of the various aspects that play a crucial role. You can start by checking the eligibility criteria for availing of a two wheeler loan Bajaj Finance provides, after which it is time to assess the credit score. Both these steps would require you to gather and go through relevant documents, which would need to be uploaded as part of the loan application process. Interest rate is another aspect that you need to pay attention to owing to its impact on the EMI.
Because lenders tend to levy additional charges while granting the bike loan, the onus is on you to seek clarification on this aspect. Apart from the processing fee, do make it a point to check if the lender would levy a foreclosure charge in the event of early payment of the loan amount. Knowledge of using the EMI calculator also comes in handy to figure out the amount that you must seek.
Have you recently had your heart stuck on a latest two wheeler model of a well-known brand? The next important question pertains to seeking a bike loan to purchase it through an online application. While the process is convenient, there are certain aspects of the two wheeler loan Bajaj Finance provides that you must bear in mind, namely .
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Check if you are eligible for a bike loan :
To avail of the bike loan, you need to meet the eligibility criteria. Although lenders might vary in terms of the number of criteria, some aspects that all of them check to pertain.
- Whether your age falls within the prescribed minimum and maximum limits;
- If you have a regular source of income that can enable you to pay the EMIs on time;
- Your credit score, in terms of meeting the minimum requirement specified by the lender;
In addition, the lender would also ask for relevant documents to verify your eligibility prior to taking the discussion forward.
Credit score assessment:
Given the unsecured nature of a bike loan, lenders place a lot of importance on credit scores. To this effect, aspects that they take into account while assessing your credit score include –
- Loans that you might have availed of in the past;
- The amount that you might have borrowed as a loan from the lender;
- Whether you have repaid the loan as per schedule or defaulted on the monthly installments;
Depending on these benchmarks, lenders assign a score to the borrower out of 900, wherein the higher you are placed, the better your financial credibility.
Process of application :
Unlike yesteryears, now it is possible to complete the loan process online wherein you begin with filling in the application form with relevant and accurate information. Next, you will need to upload documents as proof of the information that you have filled in along with your photograph. To this effect, you may need to adjust the size of the documents for being able to upload them successfully.
Having completed all the steps, click on ‘Submit’ and await confirmation from the lender. The process stands completed at your end once the lender confirms receipt, and the next stage entails waiting for the verdict.
Interest rates :
These can be either fixed or floating, and the amount is added to your monthly installment. While a fixed interest rate remains constant throughout the loan tenure, a floating rate is prone to change as per market fluctuation. You will need to choose the type of interest rate on the two wheeler loan Bajaj Finance provides during the negotiation phase, and inform the lender accordingly.
Additional charges :
When you avail of the bike loan, seek clarity from the lender about the charges which will be levied. Usually, lenders include the interest rate in the EMI, but sometimes they also levy the processing fee. Because the amount varies from one lender to another, you must inquire about this cost during the early stages of the process. Another point that you need to be wary of is the foreclosure charge, in the event that you wish to pay several installments at one go and close the loan before its tenure.
Seasonal offers :
It is common for lenders to waive off additional charges during specific months, like the festive season, to attract customers. By keeping track of the updates on the lender’s website, you can capitalize on the offer once it is made available and accrue benefits. From lower interest rates to waiving off the processing fee, seasonal offers can work in your favour by substantially lowering the overall cost.
Since an online process is subject to time-out, you must keep all the documents ready at hand for uploading. Also at the time of ascertaining the loan amount, interest rate, and EMI, chart the repayment strategy so as to be clear about the way ahead.
Bajaj Finance provides an EMI calculator which can help you with the aspects involved while filling the application form.
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Oliver is a professional blogger and a seasoned business and finance writer. With a passion for simplifying complex financial topics, he provides valuable insights to a diverse online audience. With four years of experience, Oliver has polished his skills as a finance blogger.