Two-wheelers, such as motorcycles and scooters, are a popular mode of transportation for millions worldwide. They are affordable, efficient, and easy to manoeuvre in heavy traffic, making them a preferred choice for daily commuting. However, only some have the funds available to purchase a two-wheeler outright. This is where Two-Wheeler Loans come in, providing a convenient financing option for those looking to buy one.
Two-Wheelers Loans are designed to help individuals finance the purchase of a two-wheeler by allowing them to borrow the money to buy the vehicle. Typically, Two-Wheeler Loan interest rates are lower than those for credit cards or personal loans, making them a more affordable way to finance a two-wheeler purchase. Read on to find out what a Two-Wheeler Loan is and how to apply for Bike Loan online.
Features of Two-Wheeler Loans
Two-Wheeler Loans have several unique features that make them an attractive financing option:
- Firstly, Two-Wheeler Loans are offered at competitive interest rates. Two-Wheeler Loans are secured loans where the two-wheeler vehicle being purchased is used as collateral. This reduces the risk for the lender, resulting in lower interest rates for the borrower
- Secondly, Two-Wheeler Loans are available with flexible repayment options. Borrowers can choose the loan tenure that suits their financial situation, ranging from 12 to 48 months. Some lenders also offer the option of prepayment of the loan without any additional charges. This means that borrowers can repay the loan earlier than the agreed-upon tenure.
- Lastly, Two-Wheeler Loans have a simple application and approval process. Most lenders have an online application process that is quick and easy. Applicants must provide basic personal and financial information and the details of the two-wheeler they intend to purchase.
Eligibility for a Two-Wheeler Loan
Two Wheelers Loan is available if you meet the criteria mentioned:
- Age: To qualify for the loan, your age must fall between the lender’s age requirement
- CIBIL Score: Your credit score must be on the higher side, a score north of 700 is desirable
- Employment: Both salaried and self-employed are eligible to apply
Documentation Needed for Two-Wheeler Loans
To apply for Bike Loan, following documents need to be provided,
- Aadhaar, PAN, passport, voter ID cards, and other documents that serve as proof of age.
- Address verification options include voter ID card, utility bills, passport, and Aadhaar card.
- Last three or six months’ worth of bank statements
- Recent passport-size photographs
How Can You Improve Your Chances of Getting a Bike Loan?
Getting approved for a Bike Loan can be tricky, especially if you have a poor credit history. However, there are a few things you can do to improve your chances of getting a Bike Loan:
- Check Your CIBIL Score
Your credit score is vital in determining whether you’ll be approved for a loan and at what interest rate you’ll receive it. Before applying for Bike Loans, check your credit score and take steps to improve it if necessary.
- Shop Around for the Best Loan
Don’t just accept the first loan offer you receive. Shop around and compare rates and terms from different lenders to find the best loan for your needs. You can check with banks and credit unions to see what they offer.
- Get Pre-Approved
Before shopping for a bike, get pre-approved for a loan. Pre-approval for a loan helps you identify how much you can afford to spend on a bike and whether it will make the purchase easier. When pre-approved, you’ll know how much you can borrow.
- Consider a Co-Applicant
If you have bad credit, consider getting a co-applicant for your Bike Loan. It helps improve your chances of getting approved for a loan and helps you get a better interest rate.
- Make a Down Payment
If you can afford it, consider making a down payment on your bike. This way, you can get approved for a loan and may negotiate to lower interest rate. When you make a larger down payment, you’ll also have a smaller loan to pay back, which can help you save money in the long run.
Apply for a Two-Wheeler Loan Online Easily.
The following are the steps to follow for Two-Wheeler Loan applications:
- Locate the branch of the bank you have selected for your Two-Wheeler Loan.
- Contact the respective representative of the bank by going to the dealership store of the two-wheeler that interests you.