Now, having a motor vehicle, especially two-wheelers, has become a basic necessity. It is convenient for multiple odd jobs and regular transportation. If you are going to college, want to visit your friend, or reach an area on the outskirts, a bike is the most convenient transport medium. t the cost of two-wheelers has increased, and buying them sometimes becomes challenging. Here, two wheeler loans can assist you in purchasing the vehicle of your choosing.
Instructions to Apply for a Two Wheeler Loan
You need to meet the specific eligibility criteria listed below to get a bike loan:
- To request a bike loan, you must be 18 years old and not older than 65.
- You must be an Indian resident at the same address for at least a year.
- Salaried workers must meet the requirements at the time of loan application and have a minimum of one year of work experience.
The following essential records are needed to confirm your eligibility for a bike loan:
- Government employees must produce a copy of their last three months’ pay slips. Employees of private companies must present wage slips or certifications outlining the deductions.
- A copy of Form 16.
- Self-employed individuals must issue a copy of their IT returns.
Documents required for KYC include:
- Passport-sized photos.
- Copy of the completed application form.
- ID and residence proof (such as a PAN card, electricity bill, bank passbook, or driver’s license).
The Benefits of a Two Wheeler Loan
- Taking out a loan to purchase a two-wheeler is a wise decision since it allows you the ease of repaying the loan in manageable installments that are also in line with your monthly budget.
- Depending on the applicant’s annual wage, credit score, and market and resale worth of the bike, prices differ from lender to lender.
- Choosing a two wheeler loans might increase your ability to afford it.
- A bike loan is an intelligent approach to raising your credit score. It will strengthen your profile and increase your chances of getting any future loans, such as a home loan or auto loan.
- Having a motorbike is a dream shared by people across all economic groups, from recent graduates to professionals. Because of this, lenders grant bike loans to borrowers with a minimum yearly income.
- Loan approvals are now online, thanks to the digital expansion, which has eased the loan application procedure. The loans are approved and distributed in a day or two.
- Numerous lenders have agreements with bike dealers that enable the applicant to receive extra benefits. For example, they are waived registration fees, free insurance coverage, significant cashback rebates, significant discounts, payment of accessories’ costs or the cost of alternate seating arrangements, among many others.
Tips to Go for a Two Wheeler Loan
- To obtain a reduced bike loan interest rate, get in touch with a reputed NBFC.
- If you have an excellent credit score, you can negotiate the rates too.
- Around the festive seasons, different lending institutions provide interesting offers.
- To determine the loan amount you can afford, use an online loan calculator.
- To always take advantage of every payment, choose a repayment strategy with adjustable EMIs. Then, spend much upfront to get a smaller monthly payment and shorter term.
- Longer loan terms help you avoid repayment difficulties.
- Before you sign the loan agreement, understand the intricate provisions.
- When purchasing a bike, pay close attention to the insurance and registration fees. You should also ensure the bike loan interest rate is under your repayment capacity, or else it can become a stress for you.
- See whether you can prepay the loan with no additional fees through your bank. Take a look at expenses, late payment penalties, etc.
Final Thoughts
You may purchase the vehicle of your choice with a two wheeler loan, making commuting much simpler. With the help of this article, you would have understood the benefits of getting a loan to purchase a bike or scooter by now. However, before making a choice, consider your needs and financial position. Then, choose after a detailed evaluation of every aspect.