What should government employees consider before taking a two-wheeler loan?

Government employees may consider the following aspects before applying for a two-wheeler loan to ensure it aligns with their financial plans:

• Eligibility: Confirm the eligibility criteria, as some financial institutions might offer customised schemes for government employees.
• Loan Amount: Evaluate the required amount based on the vehicle's cost and compare it with the maximum loan limits available.
• Interest Rates and Charges: Review interest rates, processing fees, and any other applicable charges across different lenders.
• EMI (Equated Monthly Instalment): Use an Equated Monthly Instalment (EMI) calculator to estimate the monthly repayment amount and assess its affordability.
• Repayment Tenure: Consider choosing a tenure that balances lower EMIs and total interest paid.
• Existing Financial Commitments: Consider other liabilities like personal loans or mortgages before committing to additional debt.
• Insurance: Check if lenders require two-wheeler insurance and explore the coverage options.
• Documents: Prepare necessary documents, such as proof of income, government employment ID, and address proof, for a smoother application process.

Note: Applicants should thoroughly read the loan agreement and clarify all terms with the lender to avoid confusion during repayment. If unsure about any aspect of the loan, it is advisable to consult a financial advisor.