A two-wheeler is the most practical mode of transportation on Indian roads for navigating through traffic. It is gaining more popularity as the days pass by. But people often find themselves with a shortage of funds to purchase a two-wheeler. So, it is best to avail of a two-wheeler loan.
It is simple to repay two-wheeler loans because they often have a low-interest rate. Your credit score is also boosted if the loan is successfully repaid. You can avail of this loan online from banks and popular NBFCs. The online process saves time and makes it easy to go through the procedure. There are certain factors to consider when you are going to get a two wheeler loan online. These factors are:
- Interest rate- The interest rate is the portion of the principal amount you must pay in addition to your EMI. Lenders are vying with one another to provide competitive rates due to the increase in demand for two-wheeler loans. The rate might range from 9% to 14%, depending on the tenor one selects.
- Principal amount- The principal amount is the actual sum you borrow from the lender. The borrower’s ability to make repayments determines the amount. It is good when a lender provides 90% to 100% of the two-wheeler’s on-road price as a loan.
- Tenor- The tenor is the period within which the borrower needs to repay the principal loan amount and the interest. It typically runs between 12 and 48 months. It also goes for 60 months for some lenders.
- EMI- The equated monthly instalment is the portion of the principal plus interest that you pay each month. The amount depends on the principal amount, loan tenor, and interest rate.
- Processing fee- The processing fee is a small cost that the borrowers must pay to process the loan. A processing fee of up to 2.40% of the loan amount is considered good.
How to get your two-wheeler loan accepted at once?
- Fill in correct details- Potential borrowers can apply for a loan online. They can also choose the traditional offline mode. Filling out correct details is the first step in the loan application in whatever mode you choose. The whole process seems simple. But, even the smallest mistake might cause the entire procedure to be delayed. Take care when entering the information.
- Meet the eligibility criteria- Complete this important step if you want your two-wheeler loan approved quickly. Different lenders use different standards to evaluate an applicant’s eligibility. Check the eligibility criteria that your lender has set. Meet all criteria to get your application accepted.
- Documentation- Keep your documents ready at hand to guarantee a seamless KYC process. These documents include your identity, evidence of address, pay slips, IT returns, and bank statements to demonstrate your consistent income. The evidence of address is needed to establish your identity.
- Calculate your EMI- Calculating the EMI is the next step if you match the eligibility requirements. Take the help of an online EMI calculator to calculate the estimated EMI. This helps you understand the monthly payment you need to make. It plays a key role in deciding to get a loan.
Eligibility criteria:
One of the greatest and simplest ways to achieve your desire for a bike is to obtain a two-wheeler loan. Unquestionably this is the best way because it doesn’t affect your budget.
Most applicants think the loan application process is time-consuming and unpleasant. It is a misconception that they must wait in line for loan approval. But the reality is that the lenders now offer a fully digital process that guarantees a hassle-free transaction. Applicants can get their two-wheeler loans approved at once if they fit the eligibility requirement.
- Residence- You must have a reliable residence address and have been an Indian citizen for at least a year.
- Age limit- A candidate must fall between 18 and 60 years when applying for the loan.
- CIBIL score- CIBIL ratings of 650 and above are favourable. But lenders like Bajaj Finserv don’t set the minimum CIBIL score requirement.
- Employment status- Potential borrowers with a stable employment situation or stable monthly income are eligible to get this loan.
