A very warm welcome to all our readers at MOTORBHAI. We hope you are in great health while reading this article,
In previous blogs, we had told you, what are the key aspects while choosing a second-hand bike and how to check the ownership of the vehicle, Documents required to ride a two-wheeler, among others. Today we welcome you all to yet another information-filled article in which we will be explaining to you what all points do we need to keep in mind while getting a loan for a two-wheelers.
We ensure that after going through this article, you will know what all precautions you should take and things to remember to avoid any kind of problem or extra expenses in the future, while you are opting to finance your vehicle from an insurance company.
Before starting, we would like to tell you a bit about MOTORBHAI, MotorBhai is a platform to bring potential sellers and buyers of a used two wheelers, together. We ensure that you get the best prices of your second-hand two-wheeler by inviting maximum potential buyers to bid on your second hand two- wheeler in real-time. This helps to maximize the value for the seller in the unregulated market of second-hand two-wheelers. Motorbhai’s primary goal is to provide the maximum value for your second hand two- wheeler in a minimum possible time. So now, without further wasting any more time, let us get started!
#1 Knowing the Actual Price of the Vehicle
Knowing the ex-showroom and on-road price of the vehicle is very important, as it can vary depending upon the state to state, and you must be confirmed about the price of the vehicle for further inquiries too. You can check the exact price of the vehicle from the company’s official website and you can also compare the prices of the same vehicle from two different showrooms of the same brand. This will not only help you in knowing the price but also help you know from where you can get the vehicle at a more affordable rate.
#2 Rate of Interest
Before taking a loan from a company for your vehicle, you must know about the rate of interest which would apply on you. Different Companies have various schemes, according to which, there are different rates of interest, (varying from 11%-14%). So, the buyer must be well informed of the fact that how much extra amount he would be spending if he takes a loan at a hefty interest rate.
#3 Hidden Charge
One of the most important things to keep in mind, while financing your two-wheeler. You should always ask your finance company if there are any hidden charges before finalizing a loan from them, so that after you have finalized a loan from them, you do not have to pay anything which you did not know about. Some expenses like processing fees should be well known and clear to the owner so that there is no problem in the future regarding the same. Various charges like HPA, PF, LS, Loan security are some aspects that need to be checked.
#4 Repayment
Make sure that the formalities of filling documents related to all the payments and finances are being done in your notice and front of you so that you are aware of all the information which is being filled. As the information filled in these documents is very important regarding the finance of the vehicle and must be checked by the owner carefully.
#5 Payment bounce charge
It may happen that the payment which you have made for the installment has bounced, or there could be any other reason due to which you could not make the payment for the installment for that particular month. In this situation, you must be well informed of the extra payment bounce charge which you would be paying later to the company. Hence it is advised to check the payment bounce charge before finalizing the loan. Non-payment of the payment bounce charges could also cause a problem when you would be claiming for NOC in the future, when all the loans would be clear.
#6 Put date in the document
Any document which is used in the process of financing the bike or in the process of buying the bike, which could be any identity proof or any other document related to the bike, make sure has your signature, along with the correct date on it for further validation.
With this, we hope we have helped you in letting you know what all points to keep in mind while you are financing your two-wheeler. We hope this article has helped you, and if there is any feedback, views from your side, or if you feel we have missed out on any point, do let us know in the comments section below as your feedback is very valuable for us. With this, we would like to end the article here and we hope to see you soon in yet another information-filled article!
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Till then ride safe and stay healthy!