Transportation is vital in this day and age as it helps us travel from one place to another quickly. If you are someone with a job or family, you likely understand how important it is to have transportation, making moving around a lot simpler.
However, buying transportation can be pretty expensive and requires a decent investment. Not everyone has that money lying around, and it can take them a while to accumulate that money. Money accumulating can be tricky too if you cannot commute to your job, for which you need the transportation. In such a situation, a motorbike is the closest thing one can buy as it is one of the cheapest forms of transportation available.
A motorbike loan can ensure you can get a motorbike instantly and then pay back the loan at a specific rate along with interest. However, you may wonder what traits a lending company looks for in an applicant. This is to ensure that you can fulfill these traits and get the loan you need. In this article, we will discuss exactly that. Let’s dive in.
What traits does the ideal motorbike loan applicant processes?
When a lending company or bank processes your loan application, there are certain things that they look out for. They may also look out for personality traits as these telltale signs might tell them how valuable doing business with you will be for them. After all, like all businesses, it is their goal to earn a profit from the transaction of loaning you money. Here are the 6 personality traits the ideal motorbike applicant will have:
Creditworthiness represents how reliable you are when it comes to repaying the loan. To evaluate your creditworthiness, lending companies will look at your credit history to see how you have managed to repay money for any previous loans you may have taken. This will include how timely you have been with payments, the types of loans you took, and any penalties you have incurred. So if you have a higher credit score, then providing you with a loan will be less risky for the company, and you will have a better chance of getting the motorbike loan you have been eyeing. You might be able to get better terms in such a case because the lender will trust you to pay back on time.
Another trait that lending companies will want to see is reliability, which means having a solid cash flow. If you have a solid cash flow, you have a higher chance of paying back the loan. That is why they will likely ask you for documentation proving you have a stable income so that it poses less of a risk for them. Since you’ll be paying them back consistently, they will likely want to see a consistent cash flow, especially for daily or weekly payments that are customary for motorbike loans.
3. Business Experienced
Being experienced in business is a good sign to lenders as this likely means they’ll know that you understand the dynamics involved in a loan. It also suggests to them that you have experience handling money responsibly and will likely undertake the loan responsibly. Again, there will be a less perceived risk from the lender’s point of view, which means you’ll likely get the motorbike loan. In such a case, you might be able to get more favorable terms too.
Another essential trait that lenders will look for is your decision-making by presenting them with the plan for using the loan. This will include how you plan to use the loan, invest it, and any assets, etc., involved in the process. If the plan is sound and sounds like it will create money, then lenders will be more likely to give you the loan as they will see there is less risk involved. Therefore, before you ask for a loan, it is a good idea to come up with a solid plan with a few holes in it as possible to show that you are prepared.
Loan lenders prefer attentive people as this means they will stay up-to-date with their bills to ensure that they can back their loans on time. So if someone needs money to start a small business, then being attentive to the costs involved is key, including the loan amount they have to repay. Such a person is more likely to pay back the money after they get a motorbike loan as they’ll be attentive to the payment schedule.
6. To the point
The ideal loan applicant will be to the point by telling the lender exactly how much money they need for what they need. If they need a motorbike, they will also take the loan for the costs involved and not anything extra. This will show that their thinking is realistic, which will communicate to the lender that you will likely be able to pay back the loan. It can be a good idea to use a loan calculator to ensure your expectations are realistic.
Why makes Mwananchi Credit Ltd. the best motorbike loan provider?
We are a Kenyan-based loan provider that has been in business for almost a decade. We have changed many people’s lives through our loans by relieving their financial stress through our loans. Such is the case for our motorbike loans, which are ideal for young entrepreneurs who lack funding for basic transportation.
With our motorbike loan, not only do you get to own the motorbike after, but you can also get a low fee tracking device fitted inside alongside a tremendous low fee for comprehensive motorbike insurance. You also pay back the loan amount with 3.5% interest on the agreed amount of terms which can be as low as 300 KSH. There will also be a low 4% processing fee alongside application and CRB fees. The repayment term can also be as long as 18 months, ensuring you have ample time to repay it. This includes getting a loan for the popular boda boda and tuk tuk bike.
You can visit our branch in Mombasa if you are interested in getting one.
What are the requirements for a motorbike loan?
The requirements for a motorbike loan are simple to ensure you can get the loan with minimum hassle. These are the following:
- Passport Photos
- ID Copy
- KRA PIN Copy
- Six Months Certified M-Pesa Statement
- Three Guarantors with ID Copies (One must be relative)
- 15,000 Initial Contribution
Once you have submitted these requirements and applied for the loan, the process and approvals will be done quite swiftly. Typically, this can take up to 24 hours until you are given the funds to get the motorbike. Again, we value our clients and ensure they do not have to wait a lot to avoid the hassle.
The bottom line
Motorbikes are some of the more basic transport options that can be great when you need a cheap mode of transportation. They may be cheaper than other transportation options, but they still require a decent amount of investment. A motorbike loan is an excellent option if you want to get a motorbike to chase all the opportunities you want. To increase your chances of getting a loan, we have listed some of the traits that lenders will likely look for when judging applicants. We recommend fostering or presenting these traits when you apply. We have also shown what makes us the best motorbike loan provider if you require one. We wish you luck with any motorbike loan application you choose to go for and hope you try us out!