Fintra’s easy to use Bike Affordability Calculator helps you figure out the right budget for your Bike!
The first step in the Bike buying journey is to know how much amount you can afford. Fintra has created a Bike loan affordability calculator to help you understand your budget for your dream Bike.
Simply enter your monthly EMI, Down payment amount, Bike loan interest rate, and time period of the loan, and you will get your amount
There is a general 28/36 Rule for Affordability. According to this rule, your Bike Loan EMI should be less than 28% of your pre-tax income. Also, Total loans (Home, Car, personal, etc) should be less than 36% of your pre-tax income. Lenders definitely look at these parameters along with other factors such as Credit Score before issuing you a loan.
The below-given factors affect Bike Loan affordability:
1. Income: Income is amongst the most crucial factor for your loan affordability. Having a stable income increases the chances and you will get a much better picture of what amount of loan you'll comfortably repay.
2. Age: Younger people have a higher probability of getting a large loan amount due to long repayment ability as compared to an older individual
3. Income Sources: Having multiple income sources increases the chances of getting a loan
4. Current EMIs: Having a large number of Existing loans and their EMIs will have a negative impact on Bike affordability
5. Credit score: A better credit rating makes the authorization process faster and easier and vice versa.
What are the vital documents required while applying for a bike loan?
To process a bike loan application with a selected lender, you will have to submit your KYC documents, which include your identity proof and current address proof, PAN Card copy, bank statement, and your income proofs (Form 16/Salary Slips/ITR).
Why is CIBIL Score important for getting your bike loan sanctioned?
When you desire to take a bike loan, you cannot ignore the Credit Information Bureau of India Limited (CIBIL) score. CIBIL score gives your lenders an insight of your credit health and history, along with your willingness and abilities to repay debts on time. CIBIL scores play an essential part in obtaining a bike loan sanctioned. Lenders desire to know if you are a creditworthy applicant who they can lend to. An unsatisfactory CIBIL score will weaken the chances of getting the bike loan without any hassles.