Financing big-ticket expenses can be a concern for individuals who do not keep their monetary requirements planned or those who carry high purchase aspirations. Especially in cities like Chandigarh, where the lifestyle of residents has seen a recent surge, with expectations of further growth, personal financing is one of the most sought-after avenues. The increasing demand for big-ticket purchases like two wheelers has further invited a surge in funding needs of city residents. Thus, lending institutions seek to meet these increasing spending needs through funding options like two wheeler loans in Chandigarh.
These are customised funding options that help aspiring bike purchasers fulfil their funding needs without much hassle if they are suitably eligible for the advance. If you are one such person seeking to avail a bike loan in the city, here’s all you would need to know before availing financing.
What are the Features Available for Two Wheeler Loans in Chandigarh?
As tailored funding options, bike loans come with features that turn out favourable for the borrower. Especially, in a city like Chandigarh, where demand for bikes has been at an all-time high, lenders seek to bridge the funding gaps for such purchases with their customised two wheeler loans in Chandigarh. Some of the best features that come with these advances include the following.
The topmost feature that makes bike loans attractive is that they are secured advances backed by asset collateral. Herein, the bike itself serves as the collateral secured by way of hypothecation to complete necessary financing. As the security is available to the lender, their worries regarding risk profile of the borrowing individual are reduced to minimal. It is true for bike loans everywhere, including two wheeler loans in Chandigarh.
The first and foremost condition of a secured financing arrangement is the presence of LTV or the Loan to Value ratio. It is a ratio that indicates the maximum loan amount available as a percentage of the bike current market value.
For bike loans in Chandigarh, the LTV provided by reputed lenders is one of the highest in India, and can go up to 95%. The borrowing individual needs to meet the remaining 5% cost through down payment made initially for vehicle booking.
Low rates of interest
Alongside, one of the top reasons why bike ownership aspirants choose these loans to finance such a purchase is the competitive rate of interest they attract. While their secured nature make them cheaper funding options than several other personal financing avenues, lenders extend low bike loan interest rates to prompt aspirants into availing necessary financing for such a purchase, which turns out to be a win-win for both the parties.
Funding for all types of bike models
Another common feature that is often left in the hindsight when availing a two wheeler loan in Chandigarh is that such funding is available for all types of bike models. Individuals can thus borrow these advances without any constraints regarding the bike model they desire to purchase.
Sufficient financing quantum for high-end bike model purchase
As these loans are available in a high quantum, usually going up to Rs.10 Lakh, purchase of high-end bike models is not restricted as well. You may thus affordably avail a suitable bike loan amount to finance your vehicle purchase and repay it conveniently in easy EMIs over the selected tenure.
Suitable flexibility in repayment tenure
As for the repayment term available for bike loans in Chandigarh, they are sufficiently flexible too. With some best lending institutions providing bike loans in the Chandigarh market, the repayment term can go up to 5 years. Since the tenure is sufficiently long, the total loan liability is divided into easy EMIs for convenient repayment over a tenure of up to 60 months. Depending on your eligibility and negotiation, you can convince your lender for a longer repayment tenure as well.
Multiple repayment options
Lending institutions also provide multiple options for loan repayment so that the borrower can easily choose a suitable option to repay the loan liability with ease. One of the foremost ways of repayments is to do it through simple EMI payments month on month until the tenure ends, with each EMI carrying both the principal and interest components in parts.
Another way to repay your bike loan in the city is to choose the part-prepayment option that allows you to repay a part of your loan liability in a lump sum before the tenure ends. You can also choose to foreclose your bike loan account through complete repayment of your total loan outstanding via a lump sum payment before the tenure’s end.
Now, even though the eligibility requirements for two wheeler loans in Chandigarh are simple, you still need to hold a decent credit score. It helps lenders assess your creditworthiness based on previous records and a high score above 700 persuades them to approve the loan early.