Two-wheelers are the most popular mode of transport in India, and a well-planned loan can make ownership affordable. Here is how to get the best deal on your two-wheeler purchase.
If paying cash means depleting your emergency fund, a loan is the smarter choice. Two-wheeler loans have relatively low interest rates and short tenures making them easy to manage.
Most lenders require 10-25 percent down payment. A higher down payment reduces your loan amount and EMI. Some dealers offer zero down payment during festive seasons.
Two-wheeler loan rates typically range from 8-16 percent depending on the lender, your credit profile, and the vehicle. Compare rates from banks, NBFCs, and manufacturer financing options.
Tenures range from 12 to 48 months. For a depreciating asset like a two-wheeler, keep the tenure as short as possible. Ideally, pay off the loan before the warranty period ends.
Factor in mandatory insurance costs and any accessories. Some dealers bundle overpriced insurance and add-ons with the loan. You have the right to choose your own insurance provider.
A two-wheeler loan should be simple and affordable. Keep the tenure short, make a decent down payment, and compare rates to ride away with the best deal.