Blog #SBI Two Wheeler Loan

The first and the formal thing that needs to be kept in mind regarding the two-wheeler loan is maximizing the loan amount. 

• Most of the time, people get afraid of availing or maximizing the loan amount, but if you take some steps properly, it will help. Purchasing a bike by availing a two-wheeler loan with the purchase of about 80%  on-road price of the two-wheeler can make one initiate flexibility to manage other financial requirements.
  
  
• From the side of the government, there are certain reforms and policies that have been implemented to provide benefits for the customers who are facing difficulty during the time of the pandemic regarding their repayment of the loans as most of the jobs have already been lost due to the outbreak of the Covid 19 and the financial conditions of the people are not good. There has been a moratorium period, including tenure of 4 years, having 12 months of interest payment and 36 months of repayment of the original principal. Still, due to the inability to pay at the proper time, extensions have been added that have increased the tenure of 36 months to that of 48 months.
  
  

• One of the most important things to be kept in mind is not avoiding too many credit options for a two-wheeler loan that is over-borrowing should not be there. If a loan is available, then it does not mean that you will have to take the loan only without checking the other types of facilities provided by the different types of loan providers of a two-wheeler loan. There is nothing positive, but only negative things are related if the matter of over-borrowing arises. The first and foremost thing which is very much bad in over borrowing is that it will not allow a person to understand that when it is happening and after a long period when it will affect your financial stability to a much extent will be understandable and will act accordingly. It might happen that without proper calculation of the EMI, there might be the possibility of cutting around the expenses from the other types of requirements and meeting up for paying the loan amount. SBI two wheeler loan have the concept of providing reminder alert to help the customers. The worst that can happen will be that it will leave you in such a situation that after meeting up most of the requirements, you will be left with nothing and does it you wish you will be unable to pay for skip the EMIs and thus hampering the credit score which is very much worse for the other loans which you will be availed in the future.
  
  

• When availing of the loan, all the details must be carefully listened to and watched and understood to execute properly as per your feasibility. The different types of hidden charges and the processing fees, if you are not noticed properly, can make it difficult to manage the other types of expenses as there might be fluctuation in the payments, which will affect the stability of the budget and thus hamper everything.
  
  

Conclusion

Due to this reason, there is always guidelines are being given by the financial institutions that proper planning and discussion should be there for the proper execution of the loan like that of some backup arrangement if some part of payments is not given at a certain point of time or the facility of loan restructuring is there or not in case of any on certain change in the job profile or the income source of the customer. To conclude, we can say that proper management of a loan will never put you down during the most crucial time.

Also read this: Things To Follow Not To Become Defaulter of Two Wheeler Loan 

On the other side, we can see that it is upon the planning and the style of expenditure by following some rules and regulations to have some financial equilibrium without which if it is not followed then after a long period or after one or two generation automatically the effect of financial redundant will be seen to start which will keep on increasing day by day afterwards. During providing any two-wheeler loan from any loan provider, some self-planning and the planning as per the terms and conditions of the bank or the financial institution from where the loan is being provided should be made before time in hand so that no problem arises while following the procedure.

I am selecting a two-wheeler before knowing the approved amount of the loan.

• One of the biggest mistakes that most loan borrowers make is selecting a bike or two-wheeler as per the choice of the desire, which has been waiting for so long without knowing the amount of loan which has not been approved. It means that there will be uncertainty that what type of loan amount will be sanctioned that is unknown and upon that a risk factor is played as a game by selecting the bike while keeping in mind will be having the intention of this or that will be ok with the loan repayment. Still, life always shows something different in each step, and it can turn out to be less amount of loan as compared to what was thought in mind and for which all the preparations and planning are done on that basis will be totally gone in vain and again after that needs to start again.

Over borrowing

• The other most frequent mistake which one makes is the excessive borrowing of the over borrowing beyond the budget. This type of mistake generally happens with the new applicants, who are the new two-wheeler loan buyers who are doing it for the first time. It is just like a slippery soap, and at what moment it will slip out of the hands, it will not be understood. It might make which generally happens to have the shortfall and to add more fund to repay the EMI by cutting down the other kinds of expenses and to the words exchange one can also result in learning into unable to pay the whole amount at all which in turn gives a very negative impact on the good, and that is also in return will provide various and in the coming future for availing any the loans.

Well designed documents are not read properly.

• Just by going through the different kinds of advertisements and basic knowledge as most loan-application things that they know everything and due to this nasty habit, their land into different kinds of dress and gets into fraudulent activities that affect their personal, professional as well as financial life. They always get attracted by the words of the officials who are leading the gear of selling the loan agreement. The documents related to the two-wheeler loan involves many types of terms and conditions and other types of important information regarding the loan, like that of to confirm whether the interest rate is fixed or reducing balance one or there will be flexible types of the repayment schedule and the flexible repayment options will be available or not like that of bullet repayment scheme, EMI scheme paying the interest throughout the year and paying the principal at last during the expiry of the term etc.

No research

• There is no involvement of any research because most of the time, it has been seen that before self the decision of the others are believed and trusted as a first option in the form of either the person is a friend or a  relative or someone else. They do not think that each person is having a different situation and the capacities based on which they make the decision. For example SBI Two Wheeler Loan  have a unique criteria to do research on behalf of customers  for their interest. Still, it is not good to implement that same decision on self without executing and judging what the situation and the capability are, and that needs to be evaluated by the particular person and then should take a decision after comparing facilities of the loan providers.
  Also read this: CHARGES INVOLVED IN A TWO-WHEELER LOAN