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How Do I Pick the Best Lender for a Two-Wheeler Loan?


The first thing that comes to mind as a solution when considering increased transportation costs and the significance of social distance is a two-wheeler. In addition to having reduced ownership expenses, bikes, mopeds, and scooters including second hand also require less maintenance. You can get a loan for used motorcycle buy any motorbike, free pickup (รับซื้อรถมอเตอร์ไซค์ถึงบ้าน, term in Thai). There are various bikes in the commuter bike category that have a reputation for having high mileage. The market price of these bikes ranges from $75,000 to $100,000. The main factors you need to think about if you want to finance this bike are listed below.


Credit Amount


Never sign a contract with a lender before you are certain of the largest loan amount they offer. The majority of banks will extend this loan up to 95% LTV, or $100,000, whichever is less. Despite what is written on the internet, you should keep in mind that the final offer is determined by your age, salary, bike brand and model, and credit history.


Eligibility requirements


Middle-class folks favor two-wheelers as their preferred means of transportation. If your wage or business revenue is on the low side, the lender cannot refuse to finance a new bike. It is therefore essential to review the financial institutions’ minimal eligibility requirements. Consider applying to the bike lender whose requirements match your profile.


The majority of financial institutions typically have the following eligibility requirements for two-wheeler loans: 


1. You cannot be younger than 18 years old.

2. Six months of that one year must have been spent working for your current employer.
3. You need documents proving your employment, income, and identity.

Mortgage rate


Find out the interest rate for a 2-wheeler loan from your favorite lender. Please remember that this loan is secured, not unsecured. For the term of your EMI payments, the lender hypothecates your motorcycle. The lender has the right to auction off your bike to recoup the total unpaid principal amount as well as the interest rate payment if you have missed many EMIs and are on the verge of default. Given this loan feature, you should never submit an application to a lender who is still charging excessive interest rates.


Payment duration


A two-wheeler loan is typically offered for up to four years by lenders. Finding out whether this tenure is definite or whether you have the opportunity to select a lesser term based on your affordability, however, is crucial.


Method of calculating interest


The lender might impose the interest rate in a number of ways. Find out from the lender’s representative whether they apply a lower or flat interest rate to 2-wheeler loans. In the former, the interest is based on the total amount you borrowed initially. If the lender uses a decreasing method, the interest is determined after each EMI payment made each month. This rate is determined by the lender based on the outstanding balance. As a result, you’ll see that the interest payment component is larger during the first few years of the loan but smaller as it goes along.  The difference in the interest payable amount is clear to see. 

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