Bike finance providers generally secure
While taking a loan for buying a bike your foremost concern is that the loan should not turn into a burden. You would not only like to avail the loan for larger repayment duration but a cheaper borrowing also is what you look for. So for bike finance all such concerns should be addressed well.
In taking bike finance you usually require greater amount of loan in case you intend to buy a new model. For used bikes smaller borrowings may be sufficient. But before approaching a lender, see if your pocket allows for some down payment to the dealer. If a down payment can be made, it surely reduces the amount to be borrowed which in turn makes the repayment of the loan easier.
Bike finance providers generally secure the loan through taking the deal papers of the very bike the borrower intends to buy. So, one can say that bike finance is usually secured finance. The deal papers are returned to the owner of the bike once the loan is fully paid back. Till then the owner can continue to drive the bike. Because the bike finance has been secured, lender is in better position to offer the finance at lower interest rate. Though secured bike finance comes at lower interest rate, but lot depends on credit score, type of collateral placed financial status and market conditions.
