Motor bikes are highly costly to purchase. Everyone cannot afford them from own pocket. Hence taking out bike finance becomes unavoidable. However, it is important to avail the loan in a wise manner, so that you can repay it on time. You can buy any new or old bike through these loans.
Depending on your requirements and circumstances, you can borrow money as secured or unsecured finance for purchasing a bike. A new vehicle comes at high prices. Therefore, you may need greater amount of loan. Such a loan will come against your valued property like home or any less valued asset. The advantage is that you get the loan at lower interest rate, which enables in lowering the monthly outgoings towards the loan installments.
On the other hand, if you are a tenant, then you have no other option than to go for unsecured , as it does not require you to pledge any property as collateral. However, you can borrow only smaller amount of up to ?25000. A little disadvantage is that these loans are of higher interest rate.
Both the secured and unsecured loans are of shorter repayment duration, ranging up to 5-6 years.
The secured loan is easier to avail despite bad credit history of late payments, arrears, defaults, CCJs. However, such people may find the unsecured loan a little difficult to get. They should be ready to make high interest payments. Another way to ensure the loan approval is to make high down payments to the lender. The down payment cuts the lenders' risks.
Make sure that you have applied for the rate quotes of the lenders, who are offering bike finance. You should see the additional charges on these loans. Select an offer, which suits to your circumstances. Make timely repayments to escape any debt build-up.
