Two Wheeler Loan
Two Wheeler Loan Details
Two Wheeler Loan Overview
A Two-Wheeler loan allows you to buy your dream Bike or any other Two-Wheeler without worrying about money. Let’s take a look at the overall picture of Two-Wheeler Loan.
What is Two-Wheeler Loan or Bike loan?
- This loan is given to buy a new or a used two-wheeler vehicle.
- A lot of people the rural areas prefer this type of loan as it is easy to avail and finance your two-wheeler vehicle.
- This will enable you to make the process of your purchase simple as you will not have to buy your bike with your savings.
- The scooter or the bike can be of any type.
- You can repay back the money of bike loan with EMI.
- You can either buy a 200-cc scooter or a 500-cc bike with the help of this loan.
- Non-banking financial corporations as well as banks offer this type of loan at affordable prices.
- You should look carefully at the features of the loan and then apply accordingly. You can look at the details of the two-wheeler loan on the net and then apply accordingly for it.
- Since bikes are an economical choice in the country for most families, a lot of families take bike loans.
- Two-wheeler loan online apply facility is also available for people who cannot go to banks.
- 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 bike 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 installments.
- 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:
- It is an easy as well as a stress-free step to go for a two-wheeler loan online apply.
- You can visit the third-party websites or the official websites to get information about various interest rates, fees, EMI options and other charges.
- Compare the features of each loan and then select a loan accordingly.
- You can use an official EMI calculator available on the financial and official websites to calculate the EMI.
- You need to just fill the loan amount, tenure and the interest rate in the calculator and the other things will be calculated.
- If you are applying online then you can upload all the required documents online easily.
- It is much easier to apply online as you can apply from your house without going to the bank branch.
- The overall loan expenses are reduced when you apply online for a two-wheeler loan.
- 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:
- If you are interested in the offline application process, then you need to visit the required bank or NBFC for applying for the loan.
- The customer representative will guide you about the loan procedure.
- You need to tell about your preferences and financial conditions to the representative.
- After this you will be asked to complete all the formalities before the loan amount is sanctioned.
- This process has a disadvantage as you will not be able to compare different banks and organization’s regarding the two-wheeler loan.
- Moreover, you will have to stand in a queue and wait for your turn to come.
- These things make the online option more continent for people.
The features of a two-wheeler loan are as follows:
- Bike 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.
- Bike 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:
- PAN card
- Aadhar Card
- Driving License
- Voter ID
- PAN card for address proof
- For salaried people:
- Offer letter of the company.
- Salary slips
- Bank statements
- For self-employed people:
- Form 16
- Proof of the source of income
- Bank statement
The two-wheeler loan interest rate is as follows:
- SBI bank: from 16.25%
- HDFC bank: from 20.90%
- Bajaj Finserv: from 11.33%
- Axis Bank: from 10.80%
- L&T Finance: from 7.99%
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.
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