Two-wheeler sales in India reached 15.12 million units in the fiscal year 2021.
In the Indian two-wheeler market, loans account for 75% of all purchases.
A few years ago, many Indian consumers were averse to purchasing bikes as they were so pricey.
However, a rapidly growing economy and the loan market have changed the attitude of consumers.
Bike financing has altered the mindset of buyers, and they are now preferring to buy bike on EMI.
Now people are buying bikes not just in large, industrialised cities, but also in small towns and villages.
Many people wonder how to buy bike on EMI. This blog will lead you through the process of taking a bike loan.
What is the process to buy bike on EMI?
Buying a bike on EMI is very hassle-free and straightforward; the steps are as follows:
1. Choose a lender
It is easy to become overwhelmed by the numerous online bike loan options, but it is critical to compare lenders.
Take a loan from a reputed bike loan lender with a good credit history who will help get more attractive offers in the future.
Individuals can obtain a two wheeler loans at competitive rates with Muthoot Capital, a reputable lender. The eligibility requirements are simple to meet with no hidden fees and minimal documentation.
2. Examine eligibility criteria
After selecting a lender, check the eligibility criteria.
Muthoot Capital’s eligibility conditions are as follows:
- An online bike loan is available to any Indian resident (whether salaried or self-employed).
- Salaried workers should have a minimum yearly income of Rs. 96,000, and self-employed people should have a minimum annual profit of Rs. 1,20,000.
- Individuals must be between 18 years (at the time of application) and 65 years (at the end of the loan period).
- A strong credit score is required of all applicants. On a scale of 300 to 900, a score of over 750 is generally regarded as good.
3. Compute EMI
After determining the eligibility, borrowers will need to compute the EMI to evaluate whether they can afford the EMI payments.
They can use Muthoot Capital’s two-wheeler loan EMI calculator to figure out how much they will have to pay in EMIs each month.
4. Apply for a bike loan
Next, borrowers can apply for a two-wheeler loan online by going to apply now. After entering the basic information and personal information, the customer representative will contact the borrower to complete the process.
Must Read: How to Apply for a Loan Without Interest in Hyderabad?
Conclusion
Taking out a bike loan can help people realise those plans they have been putting off due to lack of cash.
Taking a bike loan is a crucial and sensitive decision. There are different factors to consider while taking a loan.
The most important factor is financial affordability, i.e., the person must be able to repay the loan without difficulty.
The borrower needs to check the credit score before applying for the loan.
The other factors include the interest rate being charged on the loan, the tenure and the repayment capacity.
Further, a person also has to find a reliable lender and negotiate terms that are acceptable to them.Obtaining an online bike loan with Muthoot Capital is simple and hassle-free, with interest rates starting at 0.99%.