Tips for Using the Two-Wheeler Loan Interest Rate Calculator
A two-wheeler is an essential part of everyone’s life. Nowadays people prefer to travel by vehicle as it is cheap and fast. Most people also obtain a loan when short on funds to purchase a two-wheeler. If you are also applying for a two-wheeler loan, you should use the two-wheeler loan interest rate calculator to estimate your EMI and total interest. It will help you determine whether you can afford a loan with your current monthly income.
How to choose the right type of two-wheeler loan
If you have been thinking about purchasing a two-wheeler with the help of a loan, you should know everything about the loan, such as its type, eligibility criteria, required documents, and features. Before you apply two wheeler loan, you must know that the lender provides both secured and unsecured two-wheeler loans. Let’s take a look at the difference between secured and unsecured two-wheeler loans:
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Secured Bike Loan:
This two-wheeler loan requires you to submit an asset as a guarantee or collateral to secure the loan amount. These loans are readily available and come with a low rate of interest. However, if you fail to pay your loan back on time, you may lose the asset you put as a security for the loan.
2. Unsecured Bike Loan:
This two-wheeler loan doesn’t require you to submit collateral to obtain this loan. However, these loans’ interest rate or down payment is higher than secured bike loans. You should always check which type of loan meets your requirements before you apply for two wheeler loan.
What are the advantages of using an interest rate calculator for a Bike loan?
You can use a two-wheeler loan interest rate calculator to know your loan’s EMI value and interest amount. It helps you sort out your monthly budget and helps you spend your monthly income more efficiently. You can get fast and accurate results by using a two-wheeler EMI calculator. With this calculator, you can compare loans from different banks and choose the one that meets your requirements. You can also choose the term for your loan after knowing the interest on your loan.
How to calculate interest on a two-wheeler loan?
You can visit the site of the two-wheeler loan interest rate calculator and enter the value of the loan amount, interest rate, and tenure in the tool to let it calculate the interest on your loan. It instantly displays the result containing EMIs and the total interest of your loan. You can use this tool for endless attempts at zero cost.
Tips for lowering the interest on two-wheeler loan
Before you apply two wheeler loan, you must know these tips to lower the interest on your two-wheeler loan.
- You can lower the interest on your loan by paying a high down payment. If you can pay a high down payment of 50% to 70% of the total price of a two-wheeler, you can obtain a low-interest rate for your loan.
- You can also improve your credit score by paying your due loan.
- Choose a short term for your loan as lenders charge higher interest on longer loan tenure.
- Show a steady source of income to your lender and negotiate the interest rate with them.
- Make regular prepayments and avoid paying penalties that increase your loan interest amount.
How to apply for a two-wheeler loan
First, you should ensure that you are eligible for a two-wheeler loan. Lenders also ask for a few documents that you must prepare beforehand to avoid delaying the loan application request. Some documents you need to avail of this loan include your PAN card, Aadhaar card, utility bills, Passport size photo, bank statement, salary slip, and ITR. Once you check you are eligible for this loan, apply for it via online or offline mode.
For an offline loan application, visit the bank’s branch and meet the lender. Fill out the loan application form and submit it with the required documents for KYC. You can also fill out the form online at your home. Visit the website of your lender and browse through the two-wheeler loan. Fill out the form and upload the required documents for KYC. After this process, the lender will disburse the loan amount to your bank account. You can use it to buy your choice of bike. Also, calculate the EMI total payable interest on your loan using the two-wheeler loan interest rate calculator, as it helps you know how smoothly you can repay the loan.
Conclusion
A two wheeler loan is popular as most people apply two wheeler loan even though they have enough savings to buy a new bike. You can build a good credit history by obtaining a two-wheeler loan. You should know your exact EMI and Interest amount before you actually apply for a loan.
