Are you planning to own a two-wheeler for daily travel to the office and running personal errands? Is a Bike Loan on your mind? Are you unsure about the loan repayment tenure?
If you are staying in metropolitan cities like Bangalore or Mumbai, then a two-wheeler is the best choice due to the traffic congestion. Also, for most individuals living paycheck to paycheck, buying a car is still a luxury; going for a bike is a better choice since EMIs on Bike Loans are significantly lower than that of a car. Getting a Bike Loan has become relatively easy, with numerous online NBFCs offering credit services that can be availed from the comfort of your home.
It is recommended to calculate all components, such as interest rate, repayment tenure and EMIs, in advance using the Bike Loan calculator online provided by online NBFCs. Loan tenure and interest rate are the trickiest aspects of a Bike Loan. The tenure of the loan and interest rate impact the EMI amount you pay. Here are some proven strategies to help you make an informed decision on the Bike Loan tenure.
How to choose Bike Loan tenure?
The repayment tenure is the duration for which the Bike Loan amount has to be paid back to the lender through EMIs. However, the repayment tenure directly impacts the EMI amount, which includes the interest component. Therefore, before applying for a Bike Loan through online NBFCs, you must assess the loan tenure and choose a tenure to make your EMI payments easier and hassle-free. The tenure choice for the Bike Loan’s repayment may be a result of numerous factors. Here are a few pointers to remember while choosing the Bike Loan repayment tenure.
- Longer Tenure: When you opt for a long tenure, the EMI amount will be reduced, but the number of repayment transactions will increase.
- Shorter Tenure: When you choose a shorter duration, the amount for repayment on your Bike Loan EMIs will be higher. The number of instalments shall reduce significantly.
- EMI choice: Using the Bike Loan calculator online, you can get various combinations of EMI and repayment tenure within seconds. Just look at all the outcomes and find the most optimal EMI and term you can easily pay off without burning your pockets. Next, look at your current financial condition and check if there is any additional expense coming your way, and then plan the EMIs as per the EMI results given from the Bike Loan calculator online. You can arrive at the best EMI and repayment tenure by following this process before your Bike Loan application.
- Repayment of EMIs: All the considerations discussed above have to be used as input to assess the optimum repayment tenure you are most comfortable with and save significant costs at the end of the term.
A Bike Loan is helpful when you are looking to buy a two-wheeler that is both good-looking and functions according to your commute needs. However, you must choose a suitable tenure so that the EMIs you pay are within your budget and there are no chances of default or delayed payments. Missing debt repayments can dent your credit score. Negative credit scores may translate to higher interest rates or loan rejections for a Bike Loan. Therefore, proceed carefully and keep all the above considerations in mind before you move ahead with the loan application.