We have "Two Wheeler Loans" for you
Loading...
Nowadays everyone wants a vehicle in a house. Two wheelers are the most common and important for high, low, and middle-class peoples. Most people recommend two-wheelers rather than cars. Now, most of the work is only possible with two wheelers. Not only do most people buy bikes, scooters, and two wheelers for their desire and fun. As all the young generation is strictly addicted towards high speed bikes and fancy looking motorbikes or you can say sports bikes. Among the total percentage, 70% of the population have two wheelers. Now the question arises here: hope everyone gets the two wheelers that easy, are they cheap in rates? The answer is simple there are many lenders who provide two wheelers loans so that everyone can buy it.
The two wheeler loan helps you to purchase a motorcycle or a scooter of your choice and pay it in equated Monthly Installments EMIs. Two wheeler loan is available for both salaried and self employed individuals
For different people, a two-wheeler serves different purposes. For some, it represents fulfilling a dream, while for others it represents a mode of transportation that can take them efficiently from one place to another. While most of us dream of owning that dream motorcycle or scooter, not everyone is capable of buying two wheelers with full payments, and other than a simple bike some of them are costly and hard to buy with cash. So to solve this issue two wheelers loan is the best option. It’s a kind personal loan and easy to get with any lender in the market.
1. Get the funds you need to buy the bike you want.
2. Get funds to buy superbikes as well.
3. Use a guarantor or co-applicant to get the money you need.
4. Repay your loan in affordable EMIs.
5. Lesser documents formalities, as compared to other loans
6. Instant loan approval at the time of vehicle purchase at showroom/outlet itself
7. Flexible repayment tenure from 1 year to 48 months, as per the borrower’s desired EMIs
8. Attractive interest rate starting from 7.85% to 20.9% per annum
9. Upto 100% of the value of the vehicle
Before applying for a loan for Two Wheeler, you should fulfil all basic eligibility criteria as prescribed by the bank. For the two wheeler loan application the salaried individuals and self employed individuals are eligible to take a loan. You will get your loan amount very soon if you meet all the required eligibility criteria once the documentation is done.
|
Eligible |
Salaried individuals and self employed individuals |
|
Age |
21 years to 70 years |
|
Monthly Income |
For salaried individuals = Rs.7000 For self employed individuals = Rs.6000 |
|
Residential Status |
Must be staying at the current address for at least 1 year |
|
Work Experience |
At least 1 year |
|
Credit Score |
Above 750 |
Any applicant who is going to avail a loan for two wheeler must have to submit the following documents. These documents are the requirements for the lenders who are providing you the amount of loan.
1. Filled application form
2. Proforma Invoice
3. Passport size photograph
4. Identity Proof
For salaried individuals = PAN card, voter’s ID, passport, Driving license
For self employed individuals = PAN card, voter’s ID, passport, driving license
5. Address Proof
For salaried individuals = Utility bills, passport, etc.
For self employed individuals = Utility bills, passport, etc.
6. Income Proof
For salaried individuals = Salary slips, IT returns, bank statements
For self employed individuals = Bank statements, IT returns, audited financial statements
How to improve your chances of getting a two-wheeler loan
In this section, we’re going to take a look at how you can improve your chances of getting your loan approved. The loan requirements differ from one lender to another. Sometimes, you may find it hard to get the loan you’re looking for. The following suggestions may help:
1. Clean up your credit: Lenders pay a lot of attention to your credit score when evaluating your loan application. If you have a high score, you stand a better chance of getting the loan you want.
2. Balance your debt-to-income ratio: Your debt-to-income ratio compares your current debt situation to your current income. It shows how much of your monthly income is currently being used to pay off loans and bills.
3. Get co-signers if needed: Sometimes, getting a co-applicant for your loan can help you get what you’re looking for. This helps especially if you have a poor credit score.
4. Don’t apply for multiple loans: When you apply for multiple loans simultaneously, lenders will realise that you may not take the loan they offer. This will make them reject your application.
Taking bike finance gives you the following benefits –
1. Safety first – The COVID-19 pandemic has made it mandatory to avoid crowded places and public transportation tops the list. Your new ride purchased via a two wheeler loan will offer you a safe driving experience during such times as these.
2. Sense of independence – By having a vehicle of your own, you need not stay dependent on public transport or anybody else for your commuting needs, something which a bike loan provides. This is especially useful in case of emergencies.
3. No public transport hassles – You can forget about starting your day with long queues to catch a bus, metro, local train, or auto rickshaw. Drive as and when you please without such hassles.
4. No strain on personal funds – Buying a two wheeler is a substantial investment. Instead of draining your funds altogether, you can take a loan and pay back in easy Equal Monthly Instalments over a comfortable tenure.
5. Zero down payment – Get finance for up to 100% of the cost of your desired two wheeler up to a maximum of Rs. 1.5 lakhs.
Now that you know how you can successfully apply for a motorbike loan, let’s check out what you need to keep in mind while applying for one. These points can help you find the right loan and avoid paying more than you should.
Do your research well
Choose your tenure wisely
Choose an affordable interest rate
Compare floating rates versus fixed interest rates
Compute your EMIs before applying
Ask about prepayment fees
Read the terms and conditions properly
Don’t apply for multiple loans at the same time
Don’t apply for a loan simply because you get an attractive welcome gift
Don’t forget to fill in the application form properly
Don’t sign the loan documents without reading them thoroughly
Don’t choose an EMI you cannot afford
Don’t forget to pay your EMIs on time
Don’t forget to prepay your loan if you can
|
BANKS |
INTEREST RATE |
|
9.15% to 15.90% |
|
|
Start at 10.65% |
|
|
Start at 11.83% |
|
|
9.65% to 15% |
|
|
10% to 18% |
|
|
10% to 26% |
|
|
Start at 11.83% |
|
|
21% to 29% |
|
|
Start at 11.50% |
|
|
7.75% to 8.35% |
|
|
Start at 10.70% |
There are two ways to apply for two wheeler loan :
1. Offline Method : By visiting the nearest bank branch
2. Online Method
Firstly visit lenders website or branch from which you want to get loan
Fill the application form and read all the term and conditions
Attach all required documents with an application form
After submitting form lenders will let you know that you eligible or not for the loan
Two wheeler Loan EMI is the amount that you pay every month to the bank or financial institution in order to repay your loan. EMI is composed of both principal amount and interest component. Interest component on your EMI is higher in early months and reduces with each EMI. Two wheeler Loan EMI Calculator helps you to calculate your monthly EMI at desired interest rate for a particular tenure.
Auto Loan EMI depends upon loan amount, interest rate and loan tenure
Loan amount – If you apply for a high loan amount, then your EMI for auto loan will be high
Interest rate - Higher interest rate on your loan leads to high amount of EMI
Loan tenure – EMI on bike loan reduces in case of high loan tenure
The mathematical formula is used to calculating EMI of Two Wheeler Loan
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
P stands for the loan amount or principal,
R is the interest rate per month and
N is the number of monthly installments.
Bank offered Financial Products
The two wheeler loan helps you to purchase a motorcycle or a scooter of your choice and pay it in equated Monthly Installments EMIs. Two wheeler loan is available for both salaried and self employed individuals
The interest rate is provided in a two wheeler loan starting at 7.85% to 20.9% per annum.
There are different ways of applying for such a loan:
Directly applying at the physical branch office of a lender.
Applying online.
Applying at the time of purchasing the bike (at the showroom).
The loan amount provided in a two wheeler loan is upto 100% of the value of the vehicle
The minimum age of the applicant is 21 years and maximum age is 65 years to take a two wheeler loan.
This depends on how much money you have of your own. If you can finance the entire amount by yourself, don’t take a loan. But if you have only a part of the money, you can apply for a loan for the rest of the bike’s value.
Salaried individuals and self employed individuals are eligible to take two wheeler loans.
If you don’t pay the EMIs on time, the bank may repossess your vehicle. Since your bike or scooter is hypothecated, the bank has every right to confiscate your vehicle to make good the losses they suffer.
Auto loan CIBIL score is very important. Good CIBIL score indicates a good repayment record and hence banks can offer you a higher loan amount at a low rate of interest for two wheeler finance. Bad CIBIL Score will result in either loan at higher interest rate or rejection of the loan application.So, make all your payments on time and maintain your CIBIL in order to get best auto loan rates.
Last Updated on : 23/Oct/2020Know More About
You're eligible for a Two Wheeler Loans if you:
Are legally adult enough to handle it
Have still got it
Get a regular pay check
Make more than a basic buck
Your eligibility depends on:
Earn more than minimum income required
Maximum allowed Two Wheeler Loans is Rs. 10K to Rs. 45 lakhs
EMIs of other loans loweryour eligibility
Boost your eligibility by:
Pay off your credit card bills
Choose longer tenure loan up to 5 years
Nothing gets done without that paperwork (which we'll happily carry over to the bank for you, no sweat). Here's what you'll need:
- 1. Photo ID and age proof
- 2. Signed application form with photograph
- 3. Residence proof
- 4. Last 6 months bank statement
- 5. Documentation for salaried applicants:
- Last 3 months salary - slips
- Form 16 or Income Tax Returns
- 6. Documentation for self-employed applicants:
- Last 3 years Income Tax Returns with computation of Income
- Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
Updated on 25 Nov 2017
| Two Wheeler Loans Details | |
|---|---|
| Interest Rate (Monthly reducing balance) | 9.15% - 15.9% |
| Processing Fees | Varies with bank |
| Loan Tenure | 1 year to 5 years |
| Pre-closure Charges | Varies with bank |
| Guarantor Requirement | Varies with bank |
Two Wheeler Loans EMI Calculator