From zipping down the highway to fulfilling a lifelong dream, everyone’s thought about owning a motorcycle once in their life. And if you’re a student ready to take the plunge and pick up your dream wheels, you may be considering a student bike loan.
A student bike loan is a personal loan that can only be used to purchase a motorcycle. Motorbike financing comes in all shapes and sizes, so you’ll need to do your research to decide which is the best financial option for your budget. Read on to learn more about how you can apply for a competitive student bike loan in Australia!
Bike loans for students — what you need to know
If it’s your first time shopping around on student loans for motorcycles, it won’t be long before you’re hit with different loan terms and types. There are a few factors you will need to consider before submitting your application for a student bike loan, such as:
The interest rate
The interest rate on a student bike loan is the cost to borrow the money and is advertised as a percentage. Interest for student bike loans is typically charged monthly and added to your loan’s total monthly repayment. Interest rates come in two types: fixed or variable.
A fixed interest rate is a rate that’s ‘locked in’ for the entire loan term, which means your repayments will remain the same. This is a popular choice for borrowers who keep to a tight budget and prefer to keep their repayments consistent. A variable interest rate, on the other hand, fluctuates with the market, meaning your repayments can increase or decrease.
Secured vs unsecured student bike loans
Aside from the interest rate, you will also need to decide if you want your loan to be secured or unsecured. A secured loan requires you to provide an asset for security purposes to be held against the loan, like your motorcycle. This safeguards the lender should you default on your loan repayments, as they can claim the asset to cover the loss. However, because of this extra insurance, secured loans tend to have lower interest rates.
An unsecured loan requires no collateral, though you may find your interest rate to be on the higher side.
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Apply Online NowLoan term
When determining how much you need to borrow, you’ll also need to think about how long you would like your loan for. It’s important to find the balance between setting a realistic repayment schedule without stretching yourself thin. The longer your loan term, the more interest you’ll pay. However, the shorter your loan term, the larger your repayments.
Loan fees and features
Like any financial product, student bike loans often come with fees you will need to budget. This can include an application fee or an ongoing service fee. If you are working with a constrained budget, ensure you opt for a loan with minimal fees to reduce your overall loan expenses.
Many bike loans for students also come with helpful features that can help you pay down the loan faster. For instance, having an extra repayments feature attached to your loan allows you to make additional payments, helping you pay back the loan faster and reducing your interest charges.
Did you know?
At Finance One, we want to put our customers in the best position to repay their loans, which is why we allow additional repayments without penalty.
How to apply for a bike loan for students with Finance One
Picked out your dream wheels and are ready to get started? Here’s how to apply for a student bike loan with Finance One:
- Meet our criteria — You must be at least 18 years old and can prove you have a regular income source.
- Select your borrowing amount and loan term — Finance One offers motorbike financing between $5,000 to $75,000, with terms between three to seven years.
- Upload necessary documents — You will also need to provide a copy of your driver’s license, your latest three months of bank statements and your bank account details.
- Await a lending decision — While Finance One does not provide on-the-spot approval, you will receive a lending decision from us within 48 hours, provided we receive all the necessary supporting documents.
Fair and fast lending starts with Finance One
With more than ten years of experience in the lending industry, Finance One has helped thousands of borrowers achieve their financial goals. We pride ourselves on being a responsible but compassionate lender that considers applicants from all financial backgrounds, including those with poor credit histories.
Learn more about our personal lending options and submit your application today.
Apply Online NowNormal lending criteria apply. Fees and charges are payable. Terms and conditions apply.
Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528
Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent advice regarding your legal, financial, taxation or other needs, to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.
