Owning a bike has never been very convenient in today’s digital age, and paying for it is simpler than ever before with an option of Equated Monthly Instalments or EMI.
Many people dream of having their own bike but are often deterred by the hefty price tag that generally comes with it.
Luckily, many financial institutions offer attractive loan schemes for buying bikes on EMI, allowing us to buy our dream bike without draining our savings.
Understand the Process of Buying a Bike on EMI
Check out the complete step-by-step process when looking to buy your dream bike on EMI:
Research and Choose the Right Bike
The first and most enjoyable step is selecting your dream bike. You need to identify the brand and model that you want to buy and get an idea about the price. Also, you need to do a little research about the features, specifications, service, fuel efficiency, and resale value.
Know Your Eligibility
Most of the financial institutions have different eligibility criteria. Some general eligibility conditions are being at least 18 years of age, having a steady source of income, and maintaining a good credit rank. Thus, you need to check the eligibility for your loan before you apply for it.
Collect Essential Documents
Documentation is the backbone of any loan procedure. You will generally need your identity proof, residential proof, income proof, credit score reports, bank statements, and bike invoice.
Apply for the Loan
You may apply for the loan either by visiting your bank or online. Most of the websites provide a user-friendly procedure to apply for the loan. Give all your details accurately, select the right loan amount and tenure, and apply. You can visit your bank officially and speak to the bank representative.
Loan Approval and Bike Purchase
When your bike loan is approved, the amount will get credited to your bank account or directly to your bike dealer, based on the financial institution’s policy. Then you can proceed to make your purchase.
Down Payment and Documentation
A down payment will be needed based on the loan terms and credit score. It is normally a percentage of your bike’s total price. Complete all your documentation and collect your bike from the dealer.
The final but important step is the repayment of your EMI. It will be fixed based on your loan tenure, amount, and interest rate. Make sure you pay your EMIs on time to avoid any kind of penalty and maintain a perfect credit score.
You can use a bike emi calculator to check how much emi you have to pay monthly.
Benefits of Taking a Bike Loan on EMI
Taking a bike loan on EMI mainly comes with various benefits.
- It allows you to buy your dream bike without making a dent in your savings.
- It offers you financial freedom and lowers your burden of a one-time payment.
- EMI payments are predictable, hence making it simple to budget every month.
- Repaying your EMI on time helps to improve your credit score.
Having your dream bike offers independence, and flexibility, and is the most convenient and cheaper mode of transportation. But, affordability will be a big issue.
Thankfully, the availability of EMI makes this process highly manageable. However, it is very important that you understand the tenure, interest rate, down payment, and various other charges linked with your loan.
Ensure you go through the terms and conditions very carefully before you sign the loan agreement. When managed responsibly, an EMI will help to buy your dream bike within your grasp without burdening your finances. With due diligence, buying your dream bike on EMI isn’t just a good financial decision, but also the most enjoyable journey towards ownership.