Is it time for a lifestyle upgrade? Are you tired of commuting to work in overcrowded buses and trains? Do you wish to have a little freedom? Purchasing a two-wheeler can be an answer to all of these. Judging by the number of two-wheeler that cross your path every day, it is easy to understand that there’s a high demand for this sleek and efficient mode of transportation. Luckily, owning a two-wheeler these days is not very difficult as opposed to choosing a two wheeler. With multiple banks providing instant loans on two-wheeler, you can easily fulfill your dream. Here’s all you need to know about how to get a two-wheeler loan.
Why Take A Two-Wheeler Loan?
The answer to this is pretty simple – to own a two-wheeler! Jokes apart, while there is a strong belief that one must make a purchase only when the finances are in place, there are plenty of advantages to taking a two-wheeler loan. It does not add pressure to your pocket since the payment gets divided into several installments to be paid over a long period of time. By making a small down payment, you can own your two-wheeler without worrying too much about the pending amount. There are several banks that provide easy installment schemes and several offers too. The festival season sees a boom in offers on loans provided by the banks.
Types Of Two-Wheeler Loans
Once you’ve decided that you’re going to knock on the doors of the bank for a two-wheeler loan, you need to decide on what kind of loan fits the bill. This depends on things like whether you have the money to make a down payment and take a small amount from the bank, or if you wish to ease out the full payment through EMIs by taking a huge amount from the bank. There are several banks that provide customers with 100 percent complete financial support. There are also banks that have a tie-up with many brands, providing pre-approved loans to their existing customers who want to buy a two-wheeler from that brand. Ensure you check the rate of interest that is being charged on the loan taken.
Also see: How to Buy an E-Bike on EMI?
What Is The Eligibility For A Two-Wheeler Loan?
Someone who is above 21 years of age is eligible to apply for a loan for a two-wheeler. Some of the banks also provide loans to people above 18 years of age. You can be either salaried or self-employed, but keep in mind that a background verification is done by the bank. If you are salaried, you have to be employed for at least six months or more. If self-employed, you need to have been in business for more than two years to avail a loan for a two-wheeler. Your monthly income should fall in the bracket of Rs. 60,000 and above to avail a loan – ticking these boxes means you’ll have an easy life ahead with no trouble paying the EMIs.
Documents Required For A Two-Wheeler Loan
To avail a loan for a two-wheeler, you need to provide your identity proof and residential proof to the bank. An Aadhar card, passport copy, voter’s ID and PAN card are the identity proofs that you can provide to the bank while applying for a loan. For your address proof, you can submit your ration card and driving license. Salaried people may have to provide a bank statement or salary slip.
Calculating Your Bike Loan EMI
One of the factors that is very important when it comes to taking a two-wheeler loan is calculating the bike loan EMI. Every bank provides customers with an EMI Calculator through which you can check the EMI amount you will have to pay for your bike every month. There are also websites like ours that effortlessly help you with the same process. Enter the amount of loan, interest rate, and the months in which the loan has to be paid, and you will get to know the EMI.
Steps To Take A Two-Wheeler Loan
- Decide on your budget.
- Decide on the brand and the model of the bike you would like to purchase.
- Decide on the bank you would like to avail a loan from and look into its offers.
- Decide on the loan amount and the years you would want to divide the payments into.
- Check the interest rate of your bank as well as other banks.
- Use an EMI Calculator to see if your bike falls in your budget.
- Submit the documents and head off to purchase your bike!
Tips On Taking A Two-Wheeler Loan
When opting for a two-wheeler loan, apart from the interest rates and EMI, do also pay attention to the processing fees and pre-closure rates of the bank. You should not wind up paying a hefty amount in processing fees. Similarly, in case you plan to close your loan much before the tenure period, the bank should not charge you with additional amounts.
Along with this, do check your credit score as well before you head to the bank. If you have a high credit score you have the leverage to bargain with the bank over the interest rate. There are many bureaus like CIBIL and online lending marketplaces where you can know about your credit score.
It is always best to gain all the needed information and familiarize yourself thoroughly with the process of how to get a two-wheeler loan before opting for one. Also make it a point to read the terms and conditions carefully before signing the documents. And now with digitization, acquiring a bank loan is just a click away. So why wait? Take the step towards making your dream a reality!