Introduction
A bike loan is an efficient way to purchase a new two-wheeler without draining your savings. Individuals exhibiting a shortage of funds or wanting to preserve their liquidity can utilize this facility to take a loan and fund their purchase of a new two-wheeler in a simple and hassle-free manner. A few charges come with taking a bike loan. Here is a study on the processing fee and other charges associated with taking a bike loan.
Processing Fee
While opting for a bike loan, applicants must pay a processing fee levied on the applicant’s loan amount, which typically ranges between 1 to 4%. However, the exact amount depends upon the scheme that the applicant selects. The processing fee is usually charged when the applicant’s loan application is processed.
Bike loan online application charges
There may be some other nominal charges associated with taking a bike loan. However, individuals must educate themselves on all the costs before entering into a loan to manage their finances more diligently. The other charges associated with a two-wheeler loan are described below. At Platinum Auckland mortgage adviser, our Mortgage Brokers will take care of all the hard work for you and help you find the right solution.
- Interest Charges
Interest charges comprise a significant component of the loan repayment schedule. They determine the interest amount that needs to be paid by the applicant each month in the form of EMIs. Interest rates may vary depending on different schemes. In addition, the loan applicant’s credit score plays a significant role in determining the interest rate. A higher credit score would grant more attractive interest rates. The other important factors that impact the interest rates are loan amount, loan tenure, employment history, and the type of vehicle you are planning to purchase. Muthoot Capital offers interest rates starting at 0.99% for two-wheeler loans with a maximum repayment tenure of 48 months.
Individuals seeking a bike loan can use our two-wheeler loan EMI calculator to determine the EMI costs they would be entitled to pay each month to manage their finances more efficiently. Loan applicants must also contact our representatives to find bike loan eligibility before submitting their loan application.
- Document Charges
Applicants are required to pay nominal document charges at the time of submitting their documents. These costs need to be covered by the applicant before the loan amount is sanctioned. The exact costs associated with the document charges also depend upon the scheme the applicant selects.
- Foreclosure Fees
At times, loan applicants may witness sufficient liquidity in their finances and may be willing to prepay their loan amount. Applicants can close their loans well before their repayment tenure by paying a specific foreclosure fee. These costs are nominal and not meant to create an additional financial burden on the applicant.
Conclusion
A bike loan is a simple way to fund the purchase of your new two-wheeler. The costs associated with taking a loan are not too hefty and can be easily borne by the applicant. The most critical component of the charges related to taking a loan is the interest rate, which determines the repayment schedule. Loan applicants must understand the breakdown of the levied charges before entering into a bike loan agreement.
