With the COVID-19 pandemic still impacting businesses and individuals, buying a bike from your savings is not a better decision. It is imperative to have your savings for emergencies, such as medical, education, travel, etc. However, following the said advice does not mean that you should give up on your dream of owning a bike. You can apply for a bike loan to manage your finances without touching your savings or investments.
Opting for bike finance to buy your dream bike is the best way to own a bike. Most lenders offer almost the entire on-road price of the bike as a loan. It means that you can get up to 100% of your preferred bike’s market value as a loan. But, your loan amount depends on factors like your age, income, credit score, and the value of your bike. With affordable interest rates and flexible loan tenure, you can repay your loan within the stipulated EMIs.
We have prepared a list of the top tips to find the best time to finance your bike, which are:
- When the interest rates are affordable
Your bike finance interest rate is one of the crucial factors in your two-wheeler loan application. It determines whether or not you can repay your loan within the set loan tenure. Before applying for bike finance, you will compare different interest rates offered by different lenders. Keep in mind that your interest rate depends on factors such as your age, income, credit score, and current financial obligations.
While making a comparison, make sure to choose a lender that offers the lowest interest rate based on your eligibility. If you are not eligible to apply for a lower interest rate, it may not be the best time to apply for a two-wheeler loan. You may have to wait until the rates drop in your favor or when you surpass the expectations of your lender.
- When you have a higher income
The best time to opt for bike finance is when you have a higher income. Your income is the second most crucial factor in your bike loan application. It shows if you can repay the loan amount with interest on time. As a rule of thumb, the higher your income, the better are your chances of securing a bike loan. So, while applying for a bike loan, make sure that your EMI amount is below 50% of your income. This way, you can not only get a loan but secure better interest rates for yourself.
- When you have a better credit score
Another factor that determines your eligibility for a bike loan is your CIBIL score. It is a three-digit number that your lender checks to find out your creditworthiness. Through your credit score, your lender finds out if you have been responsible during your past repayments.
Most lenders require a minimum CIBIL of 750 to get finance for your bike. If your credit score is above the range of 750, you will likely receive better interest rates. So, before applying for bike finance, make sure that you have an excellent credit score, or else, it is not the right to apply for a loan.
- When you are within the age bracket of your lender
Every lender has an age requirement to get a loan. If you wish to get funds for your dream bike, you must be at least 18 years old at the time of your application. The maximum age requirement to get a loan is 65 years, which means that your age at the end of the loan tenure should not be more than 65 years. So, if you fall within the said age bracket, it is an indication of the right time to apply for a loan.
- When there are better offers in the market
Lenders are competitive during festival seasons. It is the time of the year when lenders rush to attract more borrowers. In doing, they generally offer lower interest rates, higher loan amounts, and flexible loan tenure. You, as a borrower, can leverage these times. You can avail yourself of bike loan interest rates starting from as low as 0.99%, depending on your lender. The best part is that the loan amount can be as high as the entire value of the bike. With flexible loan tenure and repayment options, making timely repayments is convenient.
Are you planning to buy a bike? If so, opting for bike finance is a convenient way to manage your finances without constraining your monthly budget. While applying for a bike loan, make sure you have a higher income and excellent credit score. The best time to apply for a loan is when you have surpassed your lender’s eligibility requirements.