Have you faced a situation where you take a two-wheeler loan, start paying EMIs, and suddenly, months later, out of nowhere, find your finances spiralling out of control? Where did it go wrong you’d think? The root cause is a lack of financial planning grounded upon an intricate understanding of the loan statement.
A bike loan statement isn’t merely a formal paper, as many dismiss it, but the foundation for building your loan repayment plan. Sounds abstract? Worry not. Here’s a complete guide to help you comprehensively understand your bike loan statement for better financial planning.
What is a Bike Loan Statement?
A bike loan statement details all the relevant information regarding your two-wheeler loans, such as loan tenure, interest rate, EMI dates, previous transactions, and additional charges. Understanding and periodically reviewing this loan statement helps you make a prudent financial plan for timely repayment.
How to Obtain your Bike Loan Statement?
You can obtain and check your updated bike loan statement in several ways. These include:
- Online portals: Most lenders have online portals and provide login credentials at the time of loan approval. You can log in to your lender’s online portal and download the current bike loan statement.
- Mobile banking: Besides online portals, most financial institutions have apps to check your bike loan statement and other associated details on the go.
- SMS/E-mail: Before online portals and mobile apps, SMS and Email were the prevalent methods of checking loan details. The technique still works today, where the vendor sends you the bike loan statement over SMS or e-mail.
- Customer service: You can contact the financial institution’s customer service from where you took the loan to send your bike loan statement by post or e-mail/SMS.
- Visiting the branch: Finally, you can always visit the lender’s branch from where you took the loan and personally collect the bike loan statement.
What does a Bike Loan Statement Include?
A typical bike loan statement includes the following information:
1. Personal details
This section includes your details, including your name, contact information, e-mail, loan type ID, and other relevant personal information.
2. Loan amount and tenure
This section displays your total loan amount, down payment information, and repayment duration.
3. Interest rate
This section indicates the current interest rate for your bike loan. Any changes to this interest rate (in the case of a floating interest rate loan) are also displayed in this section.
4. EMI schedule
The amount for each EMI and its payment deadline is indicated in this section. The principal and interest amount of each EMI is also given in this section.
5. Outstanding balance
Outstanding balance is the balance that’s left to be paid. As you pay bike loan EMIs, the outstanding balance is reduced, which is recorded in the loan statement from the beginning.
6. Payment history
Your entire payment history regarding the two-wheeler loan is recorded in this section of the bike loan statement.
7. Fees and charges
This section indicates the various fees and charges associated with your bike loan, such as processing fees, late payment fees, and foreclosure charges.
8. Statement number
Statement number indicates the total number of bike loan statements you have received from the lender.
How to Analyse your Bike Loan Statement?
For better loan management, in the bike loan statement check the following sections thoroughly:
1. Verify your personal and loan details
First, always verify your personal and loan details, such as name, loan account number, loan amount, loan tenure, and loan interest rate, in the bike loan statement you receive. In case of any discrepancy, immediately inform the lender.
2. Verify the EMI breakdown
Review the EMI breakdown to determine how much of your EMI payment is going towards the principal amount and interest, respectively.
3. Monitor outstanding balance
With every bike loan statement, keep track of the outstanding balance and adjust your monthly/yearly finances accordingly. You can plan any loan prepayments depending on this information and your financial condition.
4. Review additional fees and charges
Review any additional fees, such as late payment, that can increase your financial burden. If you encounter an unfair additional charge, contact your lender without delay.
5. Confirm payment accuracy
Confirm whether all your transactions are recorded accurately in the transaction record. If there is any discrepancy, inform the lender immediately and get an updated statement.
6. Review the statement regularly
Finally, do not skip any bike loan statements and review every statement with due diligence to update your financial plan and catch any documentation errors.
What are the Benefits of a Bike Loan Statement?
A bike loan statement has multiple benefits and is not just a formal document. These benefits include:
- Financial planning: If you understand and analyse each bike loan statement properly, you can better plan your finances for loan EMI payments or any prepayments without getting overwhelmed.
- Transparency: A bike loan statement ensures complete transparency between you and the lender, with a clear record of past and future payments, deadlines, etc.
- Payment tracking: Accurately tracking all past payments can sometimes be challenging in long-tenure loans. The bike loan statement solves this problem by recording all past transactions and mentioning the number of payments due.
- Loan management: Information on future EMI payments, interest rates, and payment due dates help in effective loan management. Based on this information, you can also decide to restructure your loan if necessary.
- Proof of payment: The bike loan statement is the official proof of loan repayment history and can help assess your credit score.
Conclusion
Proper financial planning and loan management are two pillars of successful, timely repayment. Understanding the bike loan statement helps you achieve this goal and maintain a good credit score. However, choosing a reputed lender for complete transparency in the bike loan statement is important. If you’re looking for a reliable lender to obtain finance for two wheeler, look no further than Tata Capital. Tata Capital provides quick two-wheeler loans with low down payment limits and competitive interest rates. With Tata Capital, you can count on complete transparency and a hassle-free loan experience.
28 November 2024
6 mins read
Previous Post
