There are many advantages to owning a motorbike. Not only do they evoke a sense of adventure but are also easy to get around on. They navigate traffic smoothly and the costs and maintenance are comparatively low. Having a motorbike is not only a sign of prestige and luxury but is also practical. Deciding to purchase one requires a good deal of study. All aspects of finance should be thought about. Many companies provide two wheeler loans if you choose to go in for one. Before beginning the purchase process using a two wheeler loan EMI calculator is a game changer as it helps to decide the instalment amount most suited to you. Hero FinCorp is a reputed lender offering a variety of affordable loan products which can be customised to your needs. They provide competitive loans for all Hero MotorCorp two-wheelers. Their loan process is transparent and customer service world-class.
Getting the best out of your two wheeler loan can be daunting, but things can be made easy if you use all the tools available. Understanding what goes into determining the amount of the EMI is a crucial first step toward bringing your motorbike home.
Credit Score –
Maintaining a good credit score is of the utmost importance. Before approving any loans the lender will evaluate the credit report of the applicant. Any red flags on the report could result in a higher interest rate which would consequently increase your EMI. You should take care to reduce faulty financial habits to a minimum. Actions like making late payments or defaulting on payments too often, having too many open loans and credit cards, paying only the minimum amount due, overdrawing on lines of credit etc. are detrimental to your credit score. Applying for too many loans at the same time results in too many inquiries on the report which will affect the score negatively.
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Loan amount –
Loans are offered for amounts ranging from Rs. 10,000/- to Rs. 1,00,000/-. However, it goes without saying that if you apply for a high amount then the EMI will be high as well. Even if you chose to go in for two-wheeler finance you will still need to make some share of the payment on the vehicle. For example, a Hero Splendor Plus down payment would be about 5% of the cost of the bike.
Loan tenure –
The duration of a two wheeler loan can go up to 48 months. If you opt for a longer duration then you may benefit from a lower EMI. A shorter loan period may result in a higher EMI so you have to check and evaluate the best loan repayment term for you.
Income and employment –
To be eligible for a two-wheeler loan there is no minimum income requirement. However, a higher income on the application will help to reduce the EMI. This is because a higher income satisfies the lender that the repayments will be made on time. Though two-wheeler loans are offered to both salaried and self-employed persons, a salaried person with a stable income may benefit from a lower EMI.
Using a simple, online, two-wheeler loan EMI calculator, you can input the desired loan amount, rate of interest and loan tenure. The estimated EMI will then be displayed and you can explore options with different amounts etc. When you have finalised the terms that you want to apply for, you can move to the next step of making an application through either an online or offline channel.