Considering every-busy Indian road, two-wheelers are the preferred mode of transportation due to their convenience, affordability, and economy. These characteristics have somewhere made bikes and scooter a basic necessity. However, the skyrocketing prices of two-wheelers become a challenge for many. But, we have got you the solution too. If you’re looking to buy a new motorbike or scooter but need additional funds, taking a two-wheeler finance option may be the best solution.
To help you navigate the world of two-wheeler loans, we’ve put a guide that covers key information such as interest rates, processing fees, and prepayment charges. With this knowledge, you’ll be able to secure the funds you need to make your dream of owning a two-wheeler a reality. So, let’s dive in.
What is two-wheeler financing?
Two-wheeler loans offer a convenient way to purchase a new vehicle. With customised Equated Monthly Instalments (EMIs) and flexible payment options based on the borrowed principal and tenure, this mode of financing can be quite attractive. It allows you to choose from a wider range of options and evaluate different models before making a purchase, unlike an outright purchase with a fixed budget that can limit your choices.
Where to get a two-wheeler loan?
Most financial institutions offer this loan with competitive interest rates and EMI. But first, compare offers from various lenders to find a deal that best fulfils your requirements through the bike interest calculator. Then log in to their official website and begin the application process. Here’s how you do it:
· Online mode
1. Visit the lender website of your choice and go to the two-wheeler loan section.
2. Then scroll to find the ‘Apply for a Loan’ section.
3. Enter your details and the dealership from where you want to purchase the vehicle.
4. Select the checkbox to agree to the ‘terms and conditions’ and click ‘Apply Now’.
5. Once your application is received, a representative will contact you soon.
· Offline mode
1. Visit the nearest dealer in your city.
2. Converse with a representative at the dealership concerning your request.
3. Submit the documents along with the duly filled-in loan application form.
4. Based on the submissions and verification time, your loan will be approved within 24 to 48 hours.
Key steps to understand before financing Two-Wheeler Loans
Before beginning the application process, ensure to qualify the following criteria;
· Nationality: Indian
· Age: Above 18 years
· Salaried: 1-year employment with a minimum of six months at current job
· Self-employed professionals: Minimum 1 year in the existing business along with balance sheet and profit and loss statement
· One passport-size photograph
· KYC documents: Identity & address proofs
· Income proofs: Bank statement, salary slip, etc.
Ideas to get the best affordable two-wheeler loan
1. After thorough research, contact the financial institution that offers the lowest interest rate.
2. Festive seasons are the best time to opt for a loan, as institutions provide additional benefits like free insurance or zero processing fees.
3. Don’t hesitate to negotiate the rates if you have a healthy credit score.
4. Use a bike interest calculator to check the loan amount you wish to borrow so that you can handle the repayment.
5. Pay off existing debts on other loans or credit cards to get sanctioned.
6. Choose a repayment plan offering flexible EMIs to avoid skipping a repayment. Demand a higher down payment for a lesser repayment amount and tenure.
7. Understand the process and clauses before signing the loan application.
8. Opt for longer loan tenures to avoid struggling during repayment.
9. Also, eye the registration and insurance costs of the bike you wish to purchase.
10. Identify if the financial institution allows you to repay the loan without additional charges.
Benefits of two-wheeler finance for you
· You gain the independence to pick the vehicle of your dreams, as your financial institution will fund it based on the on-road price.
· Fortunately, you can repay the loan in easy instalments for a while.
· Availing these small loans and repaying them on time increases the chances of boosting your credit score to help you avail better rates on future loans for purchasing a car/ home or for your business.
· Applicants with a lower income are eligible to get the two-wheeler loan, but the rates tend to change accordingly.
· The interest rates are lesser in this loan type than in a personal loan.
· Additionally, various financial institutions offer various tax benefits on loan interest for a year under Section 80EEB of the Income Tax Act.
Two-wheeler finance is the new mantra over possessing a car. Also, two-wheelers have a high resale value. Therefore, you can upgrade to a better vehicle on repayment of the two-wheeler loan.