Commuting is a problem over long distances as everywhere public transport doesn’t help and they are also time consuming. An ordinary individual if does not think of owning a car does think of possessing a two-wheeler as a personal means of transport. That is the basic need that everyone wishes to fulfil. Two-wheeler loans are such friendly option to make life easy for everyone by making them fulfil the basic needs.
There are two major types of two-wheeler loans secured loan and unsecured loan. As the name suggests secured loans keep a security but are offered on lower interest rates. However, the unsecured loans do not keep a security but charge you higher at the same time considering safety for the amount offered. As a result, you end up paying more. Hence, the choice is yours which one to choose depending on your priority and requirement.
Why take a two-wheeler loan?
Easy loan with easy EMIs: This is a customer friendly loan that has affordable EMIs, therefore, repayment is faster. You can keep yourself updated with the latest model of two- wheeler as buying newer model is no more a difficulty.
Interesting interest rates: Two-wheeler loan is offered at competitive prices. Choose the best and leave the rest.
Affordable and reachable: Two-wheeler loans are easily available. Almost all the banks and non-banking corporations offer two-wheeler loans at affordable interest rates and EMIs.
Shorter tenure: Two-wheeler loans are small amounts offered for a shorter period of time that doesn’t make you feel burdened as repayment is easy and doesn’t stretch over a long a time.
With the growing trend of sports bikes amongst the youngsters, the loan is getting popular amongst the younger section of society making them live their dream at the same time estimate their expenses and take the responsibility of repayment.
Features and benefits
Irrespective of Income: This loan doesn’t consider the annual income of an individual as far as there is a surety of repayment. The individual doesn’t have to cut on his/her daily expenses as the EMIs are small it is only about the responsibility that one needs to take of repayment and should be counted as an element of the monthly budget he/she plans.
No prepayment or foreclosure charges: Since two-wheeler loans are small amounts, therefore, there are high chances that they can be prepaid, hence banks being aware of the high probability usually do not charge extra. They understand that any individual would want to get free of monthly instalments even if they are small amounts.
Major finance: The banks finance the major amount of the two-wheeler making it easy for the borrower to pay the minimal down payment and own the vehicle without any difficulty.
Added costs: This loan offer makes life even easier by covering the extra expenses on buying a vehicle like insurance, safety accessories, etc. It offers best deals inclusive of these extra benefits and the cost associated with it hence, you don’t have to worry about the expenses post purchasing your vehicle.
Reasonable and flexible tenure: The loan tenure is quite reasonable and decent to make easy repayments. In case of delays due to unfavourable circumstances, there is an option to extend the duration of your loan.
Credit score: Make a start with two-wheeler loan, repay easily and give a good start to your credit history. Build a good credit score and maintain for further requirements.
Age as low as 18 years is acceptable for this kind of loan. However other loans usually are offered to an individual above 21 years of age.
Both self-employed and salaried can apply for this loan
Annual income requirements are pretty low as low as 50,000 a year.
Permanent address or stability is a definite requirement to ensure the lender that the borrower has a permanent place to live or at least for a particular duration he is located there.
Contact details and proof of it is a must to avail the loan.
Job stability is an important requirement to offer the loan as it ensures the earning source and assures repayment.
- ID proof
- Address proof
- Employment proof: Documents vary for salaried and self-employed
All about two-wheeler loans
Interest rates: Two-wheeler loans offer competitive interest rates that range from 10.5% to 18%. Check for the additional charges before finalising your deal.
Additional fee and charges: Some banks offer additional fee apart from the interest like the processing fee which is not so high in case of two wheeler loans but the minimum amount can be waived off. Other charges like prepayment, late payment fee charges, conversion charges and administrative fee all should be accounted for. Some of the charges could be waived on special request provided your ability to convince the agents.
Product, Terms and conditions details: Know about your product well and be clear on all the terms and conditions associated with it as there might be some hidden clauses.
Documentation: Be ready with your documents before applying. Also, keep your
documentation complete at all times.
Interest rate: Investigate for the best interest rates available in the market and get the best deals with lower interest rate and minimal additional charges.
Credit score: Although two-wheeler loans do not look at the credit score however it is important to maintain for future references as it makes the application stronger.
Process of application
Choose the application method offline or online
If you choose it Online:
- Visit the official website.
- Get details of interest rate, EMIs and other charges. You may use an EMI calculator
- Choose the suitable offer.
- Upload documents online.
If you choose it Offline:
- Visit the bank branch.
- Talk to a representative, tell your requirements and current status.
- Submit documents
- Complete application.
Read More : Top 5 Banks Offers Two Wheeler Loans
Offline loans will not let you calculate EMIs on your own and explore offers available with other banks or agents. You may have to choose out of the limited offers available hence might end up losing on the better offers available.
Two-wheeler loans are the most customer friendly loan option available in the market that does not only help you to lead a hassle free life but also makes life easy for you and help manage your finances. Avail if you require just do not bind yourself with an extra expense. Figure out your need and cater to them with a planning to repay and get free at the earliest.