6 Effective Tips to Fund Your Two-Wheeler

Bike ownership can be a big decision for anyone as it involves your desire to buy your dream bike with a significant amount. However, if you lack the needed funds and are in a hurry to buy your desired bike then securing a Two-Wheeler Loan can be a smart way to get instant funds.

Tips to Fund Your Two-Wheeler

Buying a two-wheeler requires careful financial planning to ensure a smooth purchase without straining your budget. Whether you opt for a loan, savings, or other financing options, choosing the right funding method can make your purchase more affordable and manageable. Here are six effective tips to secure funds the right way for your two-wheeler.

1. Decide on the Two-Wheeler as per Your Needs

Before securing funds, determine the type of two-wheeler you need. Check and research all the available two-wheelers and carefully choose the one that you want to buy. Furthermore, the cost of a two-wheeler can vary, so setting a clear budget based on your needs is helpful. By selecting the right model, you can better plan your financing options.

 

2. Carefully Select a New or Used Two-Wheeler

If you are short of funds, decide whether you want to go for a new or pre-owned bike. 

A new two-wheeler may cost more, but it comes with a warranty and lower maintenance expenses. A used bike is a more affordable option, but it may require frequent servicing. If your daily usage is high, investing in a new bike is a wise choice. However, if you need a bike for occasional use, a second-hand one can be a budget-friendly option.

 

3. Set a Realistic Budget

A well-planned budget is essential before applying for a loan or making a purchase. Consider your disposable income and assess how much you can comfortably pay as an EMI if you opt for a loan. If you plan to buy the vehicle outright, setting a strict budget will ensure you do not overspend.

 

4. Check Your Credit Score Before Applying for a Loan

Your credit score plays a vital role in getting a loan at a favourable interest rate. A higher credit score means better loan offers and lower interest rates, while a low score may lead to higher borrowing costs. Since Two Wheeler Loans are secured loans, lenders still check your creditworthiness before approving the loan. Keeping your credit score above 750 can improve your chances of securing funds easily. Paying existing EMIs on time and reducing outstanding debts can help maintain a good credit score.

 

5. Plan Your Expenses in Advance

If you are planning to buy a two-wheeler in the next year or so, start saving in advance. A planned approach can help reduce your dependency on loans and interest payments. Setting up a monthly savings plan like a Recurring Deposit or investing in a SIP (Systematic Investment Plan) can help accumulate funds over time. This way, when the time comes to buy the vehicle, you will have enough savings to cover a significant portion of the cost.

 

6. Consider Using a Credit Card for Purchase

If you need immediate funds, using a Credit Card is another option. Many banks offer Credit Card EMI plans, allowing you to convert your bike purchase into affordable monthly payments. However, check the interest rates and processing fees before choosing this option. Some banks also offer zero-cost EMIs on Credit Cards for selected two-wheeler brands, which can be a smart way to finance your purchase without paying extra interest.

Things to Remember When Securing a Two-Wheeler Loan

If you need to purchase a two-wheeler urgently, then a loan seems like a viable option. But, before that, keep the following things in mind when you apply for a Two-Wheeler Loan:

 

• Apply Online for Speed

Leading banks such as ICICI Bank provide online options for applying for bike loans which is a quick and convenient method that saves you from the hassle of visiting in person and dealing with excessive paperwork.

 

• Choose Lenders with Minimal Documentation

Consider choosing lenders that require minimum documentation for bike loans. If you are already a customer with the bank, you can get a loan which needs minimal documentation and it can speed up the loan processing and approval significantly.

 

• Keep Your Credit Score Healthy

Make sure your credit score looks good before you request a loan application. Having a stable credit background indicates that you are a responsible borrower and can help lenders speed up the loan approval process.

 

• Use a Bike Loan EMI Calculator

Before applying for a bike loan, it can be helpful to use a Bike EMI Calculator that calculates the EMI. It will assist you in deciding the loan amount and repayment duration based on your situation and capabilities. By preparing in advance you can choose the loan conditions that are most suitable for you which can speed up the approval process significantly.

Conclusion

Getting a Two-Wheeler Loan can be a smart decision to obtain the required funds when in need. This way you are sure that you do need to break your savings to buy the bike. However, having a clear plan is equally essential. Follow the mentioned tips and increase your chances of getting the loan faster and with ease. The loan offers quick approvals with minimum documentation along with a competitive interest rate. By evaluating your needs, setting a budget, maintaining a good credit score, and planning expenses in advance, you can make the buying process smooth and hassle-free.