IMPACT OF A TWO-WHEELER LOAN
The features of a two-wheeler vehicle loan are summed up in the following points: -
- Most of the banks and the other Non-Banking Finance Companies (NBFCs) finance upto 100% of the on-road price on the two-wheelers.
- The cost of registering the two-wheeler and the insurance cover is also included in the amount of loan in most cases.
- The interest rates on a two-wheeler vehicle loan are low compared to the other forms of a secured loan. The interest rates start from 9% and can extend upto 26%. The interest rates are based on the borrower’s credit profile, the borrower’s credit profile, and other factors.
- The tenure of the repayment of a two-wheeler vehicle loan is usually upto four years. Some of the banks or the NBFCs offer upto five years for the repayment of the loan, but it is not very common.
- There are some pre-approved loans as the two-wheeler vehicle loans available for the existing customers in the banks. These loans are instantly disbursed and approved.
- Most of the two-wheeler showrooms have tie-ups with some of the banks for the two-wheeler vehicle loans, and the loan can be applied from the showroom of the bike or the vehicle. It is done in order to make it easy for the borrower.
- The documentation involved in a two-wheeler vehicle loan is simple, fast and minimal.
- Some of the banks also offer special low down payments and EMI schemes for the easy repayment of the loan.
DOCUMENTS REQUIRED FOR APPLYING FOR A TWO WHEELER VEHICLE LOAN: -
There are not many documents required for applying for a two-wheeler vehicle loan. The basic documents are needed such as: -
- ID Proof - Aadhar Card, Driving License, Passport.
- Address Proof
- Income Proof
- Passport size photographs
- Bank statement of the last six months.
- Form 16, for self-employed individuals.
- Income Tax Returns.
The list of the documents might vary from one lender to the other. Therefore, it is suggested to check the documents that are needed in the bank. Different banks have provided a list of the documents on their official websites.
HOW TO GET A TWO-WHEELER LOAN?
Here are a few steps that will help you to get a two-wheeler loan: -
- Verify your creditworthiness: - When you apply for any loan, the bank you apply to runs a check on your CIBIL score. This is done to verify your creditworthiness. If you have a good CIBIL score, it will mean that you have the ability to repay all your debts on time. In addition, it increases the chance of you availing of the loan. Therefore, before applying for a two-wheeler loan, you should check that you have an excellent CIBIL score. It has to be around 700.
- Set your monthly budget: - It is the most important thing you need to take care of. Before making any purchase or taking any loan, you should know your budget. You should apply for a loan that has an affordable EMI. You don't want that two-wheeler you buy to be a financial burden on your shoulders. Therefore, to ensure that, you should make a budget and stick to the requirements.
- Compare the options: - There are many banks available that provide different loans with different interest rates. So, if you are planning to apply for a loan, you should compare different loans available, at least five, their interest rates, the tenure of the repayment and other benefits, and then should select the one which is the best for you.
- Select a trustworthy lender: - As a lender or a bank checks your CIBIL score and creditworthiness for his satisfaction, in the same way, you should also check the creditworthiness of the lender. The loan providers who are well established and clear have pre-decided terms and conditions.
CONCLUSION: - A YES bank two-Wheeler loan is one of the best ways a person can consider if he plans to buy a new two-wheeler or even a second-hand bike. The amount of the EMIs is low, and the person can easily repay the loan while balancing the other expenses.
Also read this: Two-wheeler Loan Pre-Payment Options
