What is Two-Wheeler loan?
Two-wheeler loan gives you a sense of liberty to travel comfortably. A two-wheeler loan can change your lifestyle as it provides the stature of owning a brand new bike. Two wheelers are mostly the best and trustiest companions of middle-class families in India. It has been the best tool to commute in a highly populated country. However, everyone cannot afford to purchase a bike with a single down payment. And that is why two-wheeler loan becomes a savior. These loans are specially designed to ensure the customers to buy their dream bike or scooter. Two-wheeler loan is also offered with attractive repayment options to individuals. Borrowers can repay the loan amount through Equated Monthly Installments (EMIs).
Two-wheeler loans have their share of pros and cons like every other loan product, but they also come with many advantages that make it a favored loan for individuals:
- Easy to drive in traffic
- Generates less pollution
- Saves travel time compared to cars
- Can avail the bike loan without a down payment
How it works?
Individuals can apply through online and offline methods, steps for applying for the loan largely remain the same. Researching about the interest rates and tenure of different lenders or bank, and using a two-wheeler loan EMI calculator will be useful to assess the feasibility of purchasing the loans. Further, a thorough check out of the documents is needed since the lender requires the intricacy of the documentation process.
Checking the eligibility criteria is essential to ensure that you meet all the requirements of the bank or lender. After that, you’ll have to choose the bank or lender that suit the best according to your needs. Remember that you should also contemplate factors such as the urgency of loan, etc.
Ensure that you have all the right documents to complete the documentation process since it is essential to remember that proper documentation is needed to suit the eligibility criteria. Not having the mandatory documentation to back that information will lead to rejection. Along these lines is the eligibility criteria, every bank will have a distinct documentation process and a list of essential documents.
Loan Fee/Charges:
The charges depend on the Customer’s profile, the geography of residence and loan amount
Charges applicable to your Two Wheeler Loans are classified such as Pre-payment charge, EMI Late payment penalty, Loan cancellation charges etc.
The pre-payment charge depends on when you make the prepayment, and it varies according to the lender. A certain percentage will be assigned with the regards to slabs of periods. For example, if you do prepayment between 7 and 12 months from the date of the first EMI, the pre-payment charge will be 6% of principal outstanding.
EMI Late payment penalty: If you make a late EMI payment due to an unexpected circumstance, you will be charged 2.5% Per Month on the Unpaid Instalment.
Benefits
Rate of Interest
Banks and NBFCs provide low-interest rates for making big purchases like two-wheeler loans convenient. Though, the rate of interest differs according to the margin of income, price of two-wheeler and market variants. Likewise, due to the growing surplus of two-wheelers, the general interest rate offered by banks has reduced over the years.
Instant Loan Approval
If an individual wants a two-wheeler, the best way is to get a loan that will be sanctioned within a short period of time. You can apply for a loan through online websites of bankers, NBFCs and attain the necessary amount in your bank account with the click of a button on a lender’s website. Instant approval of two-wheeler loans is a guarantee in the case of acquiring finance to pay for the two-wheeler of your choice. Also, most of the financiers provide a toll-free number which guides you with the information regarding the bank loan on demand.
Decreases the Burden of Budget
If in case you already have the required amount to afford a two-wheeler, it is still better to avail a loan with easy paying instalments rather than paying the whole amount at one shot. Predominantly, it is more efficient to pay monthly EMIs over the course of a specific duration despite paying a considerable amount from your hard-earned money or savings. In addition, the most significant benefit in availing two-wheeler loans is that you can easily gather savings even though you’re paying for loan instalments. You can also use your two-wheeler loan repayment to build up a credit score.
Maximum Coverage of Loan Amount
It is always recommended to get a higher amount on your loan disbursal so that it covers all the related expenses. In order to make this happen, the buyer should consider quoting the on-road price of the two-wheeler instead of the showroom price. Even if you have a minimum budget, the excellent coverage of two-wheeler loans will let you purchase a two-wheeler swiftly.
Suitable for any category of Two-Wheelers
One doesn’t need to worry about saving money for years to get your dream bike while you can purchase a bike loan with ease. These loans can cover amounts up to 5 lakhs which will offer a wide range of two-wheelers as per the buyer’s desires. A two-wheeler loan helps in ensuring that you are fully funded, even if it’s a scooter or a bike.
Gain added benefits
In accordance with the recent terms, you can avail an accidental cover or insurance cover alongside your two-wheeler loans. These sort of loans also support in covering added costs during bike purchase like accessories or seating replacement varieties for your two-wheeler.
Buying a Two-Wheeler is no longer a luxury task with the new changes in policies and laws. It has become a cakewalk for the customers due to the flexibility of the banks and NBFCs. Every year the loan availability and approval course go through such improvements and modifications that create a hassle-free method for a common man to purchase a two-wheeler. And with all the benefits discussed above, nothing can stop you from opting for a Two-Wheeler loan. Nevertheless, a two-wheeler loan is the most convenient option for your dream vehicle is undoubtedly going to be the best choice.