Blog #Canara Bank two-wheeler loan

FEATURES OF A TWO WHEELER VEHICLE LOAN: - 

Most of the banks and the Non-Banking Finance Companies (NFBCs) offer two-wheeler vehicle loans. These loans are widely sought because most of the country’s population travels either by scooter or bike. The features of a two-wheeler vehicle loan are as follows: - 

1. Most of the Non-Banking Finance Companies (NBFCs) and banks finance upto 100% of the on-road price of the two-wheeler vehicle.
2. In most cases, the loan amount also includes the cost of registration and the insurance cover of the two-wheeler vehicle.
3. Thirdly, the rates of interest on a two-wheeler vehicle loan are low compared to the other loans. This is because a two-wheeler is a secured loan, and the two-wheeler you want to buy acts as a security or collateral to the bank. Therefore, the Two-wheeler loan interest rate is lower as compared to the other loans.
4. The tenure of the repayment of a two-wheeler loan is usually upto a maximum of 4 years. However, some Non-Banking Financial Institutions offer upto five years to repay the loan, but it is not common.
5. There are pre-approved two-wheeler loans for the existing customers in some of the banks, and they can be instantly disbursed.
6. Also, most of the time, there is a tie-up between some banks and the two-wheeler showrooms. In this, the borrower can apply for a two-wheeler loan from the showroom of the bike itself. It is done to make the whole procedure easy for the borrower.
7. The documentation is very easy, minimal, fast and simple. This is one of the benefits of a secured loan. Collateral or security is provided to the bank or the Non-Banking Financing Company (NFBC). It has the right to acquire the collateral if the borrower cannot pay the loan. 
8. Some of the banks also offer special EMI schemes or low-down payments to the customer of their bank. This is done for the easy repayment of the loan.

DOCUMENTS NEEDED FOR AVAILING OF A TWO WHEELER VEHICLE LOAN: -  

Following are the documents that you need to have if you want to avail of a two-wheeler vehicle loan: - 

1. ID Proof ( Aadhaar Card, PAN Card, Passport, Driving License, etc.).
2. Address Proof
3. Income Proof ( if required)
4. Passport size photographs
5. Statement of the banks from last six months
6. PAN Card
7. Form 16 ( for the self-employed individuals)
8. Income Tax Returns 

You can check the list of documents that are provided on the official websites of the banks.

BENEFITS OF A TWO WHEELER VEHICLE LOAN: - 

The benefits of a Canara Bank two-wheeler loan are as under: - 

• Saves the savings- When you apply for a two-wheeler vehicle loan, you have to make a minimal down payment, and the rest of the amount of money will be in monthly instalments. It means that you do not have to pay for the price of the two-wheeler at that time. So, you can purchase a two-wheeler of your choice while still having savings in your bank account.
• Provides lower interest rates- The rate of interest on a two-wheeler loan is low compared to the other loans. Every lender tries to give the lowest rates possible because there is a lot of competition in the market. However, this aspect works well for you because you can receive the cheapest interest rates for a two-wheeler loan. The interest rates can be calculated with the help of a two-wheeler loan EMI calculator.
• Improves CIBIL score- The measure of your creditworthiness is your CIBIL score. The money lenders use it to verify before sanctioning the amount of your loan. If you have a low CIBIL score, it means that either you have defaulted on a previous loan or were not able to pay the EMIs on time. The moneylender may reject your loan application, or it may increase the interest rate on your bike loan.
• Minimal documentation- The paperwork is minimal and easy. You just need to present the basic documents like identity proof, address proof, etc. 

Read More:- Two Wheeler Loan In Detail 

Loans help people in adverse conditions. People take loans when there are problems, emergencies to fulfil the desires they couldn't have achieved before due to some issues and many more reasons. A two-wheeler loan is an excellent help for the people. Some of the reasons to avail of two-wheeler loans are listed below:-

1. Safe and affordable- Two-wheeler loans are very safe and affordable for everyone as the tenure period is quite long, can be extended upto 60 months, which is a sufficient time to repay the amount taken. Banks follow proper guidelines provided by the government, so the process is very safe. Some banks offer the loan in some minutes of applying if your credit score is high.
   
   
2. Reach for your dream- Everyone aspires to buy a two-wheeler of their own. You can achieve this dream if you take a two-wheeler loan to buy a two-wheeler. Two-wheeler loan provide affordable interest rates, flexible EMIs. In the festive season, you get many offers as well. Many banks tend to collaborate with the brands for promotional purposes. In that time you will get pretty good discounts which will be helpful for you to save money.
   
   
3. Keep cash for emergency purposes- You can save your money for emergency purposes if you take a two-wheeler loan for buying a two-wheeler. Paying a massive amount of cash overnight may affect your financial stability. The repayment of the loan is pretty straightforward. You need a minimal amount of money monthly for the given tenure period. The instalments are pocket friendly.
   
   
4. Use the money to invest- The funds you have can be used in investments rather than paying for a two-wheeler. Assets are vital. It will give you a hassle-free future after you retire from your job. Don't use the real money for paying for a two-wheeler. It is a better choice to take a loan.
   
   
5. Inculcate financial discipline- After taking a loan, you know that you have to pay a certain amount of money monthly for a more extended period. You will have a sense of responsibility and discipline to save your money. It helps you to plan your expenses properly. You will learn to plan things well.
   
   
6. Tax and depreciation benefits- You can claim the benefits of the taxes if you are a self-employed business person. Two-wheeler insurance, fuel and maintenance cost, the interest of the loans are allowed to deduct from the profits.
   
   
7. Build a credit profile- Your financial behavior is tracked when you take a loan. There is an effect on the credit score. A credit score is a score that shows the worthiness of taking a loan. With repaying money in the time, you boost your credit score. Higher credit scores help you to get loans quickly. You will get discounts on the interest rates as well if you have a good track record.

Canara Bank two-wheeler loan is one of the loans in demand for an extended period. These provide interest rates starting from 9.00% p.a. These provide many offers and discounts. People of age 21 can apply for a two-wheeler loan. People with employment and unemployment can apply for a loan. Unemployed people need to have a guarantor who will ensure the repayment of the money timely else, and the bank will ask for the funds from the concerned guarantor. The processing fee is also significantly less. It is 0.25% of the loan amount. The max tenure period is upto three years which is a very long period—the lowest amount for the Rs. 10,000 loan is R.319. There are no prepayment charges as well. The features are pretty attractive as a customer.

Conclusion: There are many advantages of a two-wheeler loan. The loan gives you flexibility in managing your finances.