• The number of private cars in urban areas is rising but most of the people of rural areas can still afford a two-wheeler that to with a loan.
• The resale value of two-wheeler vehicles is better than private cars and therefore after the repayment of the two-wheeler loan you can purchase a new vehicle.
• Since the cost of a two-wheeler vehicle is not very high, therefore the repayment of the loan can be done with ease.
• Buying a two-wheeler vehicle without a loan is going to cut down the family savings to a great extent.
• Therefore, it is advisable to take a loan and then repay it back with monthly instalments.
• The EMI charged for taking a two-wheeler loan is quite less as compared to that charged for a four-wheeler loan.
• The EMI can also be paid by post-dated cheques.
• You can also go for used two-wheeler loan.

You can apply for two-wheeler loans either online or offline depending on your convenience.

• Online application for two-wheeler loans:

1. It is an easy as well as a stress-free step to go for a two-wheeler loan online apply.
2. You can visit the third-party websites or the official websites to get information about various interest rates, fees, EMI options and other charges.
3. Compare the features of each loan and then select a loan accordingly.
4. You can use an official EMI calculator available on the financial and official websites to calculate the EMI.
5. You need to just fill the loan amount, tenure and the interest rate in the calculator and the other things will be calculated.
6. If you are applying online then you can upload all the required documents online easily.
7. It is much easier to apply online as you can apply from your house without going to the bank branch.
8. The overall loan expenses are reduced when you apply online for a two-wheeler loan.
9. Most of the lenders provide the delivery of loans at your door step when you apply online for a two-wheeler loan.

• Offline Application for the two-wheeler loans:

1. If you are interested in the offline application process, then you need to visit the required bank or NBFC for applying for the loan.
2. The customer representative will guide you about the loan procedure.
3. You need to tell about your preferences and financial conditions to the representative.
4. After this you will be asked to complete all the formalities before the loan amount is sanctioned.
5. This process has a disadvantage as you will not be able to compare different banks and organization’s regarding the two-wheeler loan.
6. Moreover, you will have to stand in a queue and wait for your turn to come.
7. These things make the online option more continent for people.

The features of a two-wheeler loan are as follows:

• Two-wheeler loans are a great way to open your file for credit score and maintain it as well.
• The two-wheeler loan will pay around 90 per cent margin of finance.
• This will allow you to pay the down payment of only 10% which is nothing comparing the cost of the two-wheeler.
• The two-wheeler loan allows you pay back the loan in a flexible time period.
• You get a tenure period of 12 to 48 months. Longer the tenure period, easier it is for you to manage your monthly finances as well as the repayment of the loan.
• You can avail these loans even if your salary is as low as 50,000 annually.
• You do not have to be in the taxable bracket in order to avail these loans.
• Since the tenure period for repayment can be up to 4 hears, the repayment process will onto have an impact on your monthly expenditure.
• You can also get some added benefits and freebies if the bike or scooter dealership offers you the same.
• Most of the banks will not charge you any prepayment costs if you are able to repay back the loan on time.
• This will allow you to clear your debts faster.
• The charges for a two-wheeler loan is very less.
• The loan covers the cost of accessories, insurance and the cost of registration.
• You get finance for the registration as well as additional cost of the two-wheeler loan.

Now a day’s banks are very particular about making sure that the customer should be able to repay back the loan amount.

Due to this reason they have certain criteria for the eligibility:

• The age of the person should be between 18 to 65 years
• The credit score of the person should be 750 or above.
• The person should be self-employed or salaried.
• The minimum income of the person can be low.
• The person should be on the current job for at least 6 months.
• Applicants should be living in the same space to show stability.
• The applicant should have a permanent telephone number.
• If you earn a decent salary each month you can avail the two-wheeler loan easily.

The bike loan documents required are as follows:

• At least 2 to 6 passport size photographs.
• Any of the following documents should be given for the identity proof:

1. PAN card
2. Aadhar Card
3. Driving License
4. Voter ID
5. Passport

• PAN card for address proof
• For salaried people:

1. Offer letter of the company.
2. Salary slips
3. Bank statements

• For self-employed people:

1. Form 16
2. Proof of the source of income
3. Bank statement

The two-wheeler loan interest rate is as follows:

• SBI bank: 05%
• HDFC bank: 15%
• Bajaj Finserv: less than 30%
• Vijaya Bank: 65%
• Syndicate Bank: MCLR + 2% p.a.

The above points demonstrate the average interest rate for bike loan.

The fees charged for the two-wheeler loan is as follows:

• Prepayment fees:

  This fee is charged if people are able to pay back the loan earlier than the tenure.

• Processing fees:

This fee is charged for the processing of the loan amount and it is a mandatory fee that one has to pay for availing the two-wheeler loans.

• Administrative fee:

This takes care of the administrative costs of the bank for processing the loan.

• Late payment of fees

The borrower is charged this fee if he is late to pay back the loan amount.

• Do I need to reach a bank in order to avail the two-wheeler loan?

It is not required for you reach a bank as you can also go for two-wheeler loan online apply.

The online two-wheeler loan approval is very easy.

• Do I need a personal accident insurance when riding a two-wheeler?

Yes, you need that.

• Can I switch from floating to fixed interest rate?

Yes, some banks offer this feature.