Many people would want to own a bike. However, not everyone can pay spot cash to have one. People then resort to getting a loan to buy their dream bike. Over the years, it has become effortless to get a loan to buy a dream bike. Lending institutions offer loans between 85 to 95 percent of the price of the bike. This makes it possible for people to purchase bikes and pay the loan based on equated monthly instalments. However, getting a loan that fits your needs and preferences may not be the easiest task. People need to do good research like Been Verified Review: Is It The Best Background Check Service? (2019) before deciding on which loan to take. There are various factors people need to consider when acquiring a loan including repayment terms and loan tenure and interest rates.
There are various standards that people must meet before taking a loan, and they usually vary according to lenders. There are also specific criteria that all borrowers must meet. They Include:
- Employment status: All borrowers whether they are self-employed or salaried must be in a position to give proof of their source of income.
- Salary: borrowers must also be in a position to provide a minimum of about six-month employment and credit proof
- Proof of identity: All borrowers should be able to give a proof of identity.
Now that we have gone through the various requirements that one must meet to obtain a loan, let’s look at the process that one needs to go through to get a loan from lending institutions.
Step one: Deciding on your repayment capacity and budget
Before applying for a loan, one should come up with the budget and the repayment plan that best suits him. The borrower also needs to understand all the details that pertain to the loan.
Step two: Fill your loan application form
Once you find a loan that best fits you, the next thing you need to do is to apply for the loan by filling the application form and giving all the essential details that will help the lender decide on your creditworthiness. The borrower is then expected to fill the application form with accurate details to avoid your loan application from being rejected.
Step three: Provide essential documents
At this stage, one needs to provide his KYC documents. One must ensure that all the details are updated to avoid issues with the lending institutions
Step Four: Understand the terms of a loan
When a loan application is received, the borrower normally receives a sanction letter from lending companies together with a legal agreement. This agreement usually includes the terms and conditions as regards the loan taken. You may also have to be Verified by a Background Check by the lender’s inspector prior to the loan approval.
Step five: Sign the loan agreement
The last thing that one does is signing the loan agreement and the amount of money is later sent to the borrowers’ bank account.
Loan application is no rocket science. If you really want that dream bike asap, the fastest way to getting it is applying for a bike loan that suits your needs best.