Blog #Two-wheeler loan interest rate

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 

Usually, to reach your location quickly, you need not depend on public transport schedules and availability, nor will you depend on it. Fortunately, if you have chosen to acquire a two-wheeler then the banks will do the rest by making it very simple for you to obtain a bike loan. When you take a world-class superbike, this burden appears larger. PNB Bank provides bike loans at totally accessible rates to make it simpler to repay a two-wheeler loan more flexibly and less concerned about purchasing the two-wheelers for your other monthly costs or the availability of cash. The frosting on the cake is the easiest and fastest procedure of documentation. 

You have the following papers available when applying for a two-wheeler loan from the PNB Bank. There are certain things to be kept handy for the document verification in a two-wheeler loan and those are Age-proof and a photo ID such as certificate of birth or leaving of school, life insurance, PAN card, passport. It would be advisable to have a valid passport, a voting id card, a driving license, or a bank statement with 3 passport sizes photographs. Let’s explore the possibilities of acquiring a loan in PNB Bank Two-wheeler loan plan with all the information to make an uncomplicated document verification. 

Once you prepare your mind for buying a two-wheeler it is very essential to remember certain things before applying for a two-wheeler loan.

The Eligibility for Two-wheeler loan
When you apply for a two-wheeler loan, you need to examine the eligibility for that loan. The borrower is highly careful and only sanctions the loan after examining the borrower's repayment capability. At the time of applying for a loan, the applicant's minimum age should be 21 years and his maximum age restriction is 65 years. For residential stability, the applicant must stay in the same residence for a minimum of one year. Applicants should be in steady one-year employment or self-employed for two years at least.

Interest rates for the loan
In debts, the interest rate has a major impact. A lower rate gives cheap EMI. Therefore, while applying for any loan, the interest rate is the main concern. They are the most suited to your profile at PNB Bank and provide a competitive two-wheeler loan interest rate. The Two-wheeler loan interest rate can be attained with a good CIBIL score and a monthly income assurance. The interest rate typically decreases as the loan term rises. Therefore, you should choose the loan's period based on the EMI, without too much financial expansion.

 Two-wheeler EMI calculator
The calculation of EMIs is also crucial since it informs you about the real interest paid during the loan duration. You might notice, on the other hand, that you pay monthly expenses as an PNB for the loan. So you will have a clear image of this part of the money that is to be separated from your monthly revenue as an PNB by your 2-wheeler EMI Calculator.

You can also buy the bike you want. However, a bike loan might alleviate these problems by reducing the financial strain and also by buying your ideal bike. By taking a bike loan you may solve these problems by reducing the financial strain and also by purchasing your ideal bike. Because of current conditions, your two-wheeler loan might be covered by insurance or accidental covers. You can also pay additional expenditures when purchasing a bike, such as accessories or alternative two-wheeler seats.

 Conclusion

Get up to 100% of the funding for your new two-wheeler, fast and easy payouts, reasonable prices, and rapid eligibility for a two-wheeler journey. Therefore, to buy a bike or scooter you should acquire a two-wheeler loan. Details may be verified with the PNB Two Wheeler Loan at an annual minimum interest rate.

Also read this: THINGS TO CONSIDER BEFORE SIGNING A TWO WHEELER LOAN AGREEMENT 

During this pandemic, there have been many types of resources and policies, which have brought up a significant change in the financial industry. All these kinds of things are being done to help the customers retain their loans obtained during the pandemic or before it; it is a very efficient way so that both the loan provider and the loan borrower should not get it affected. The primary financial requirements and its services should keep ongoing during this pandemic time.

There are specific criteria that will make us understand why there is a need for a two-wheeler loan and how it helps with purchasing a two-wheeler loan. When most of the centre of the world is moving fast, why should your life be waiting like a car in a traffic jam? The solution for this is to have a good bike or two-wheeler to penetrate through the conditions and avoid the roads going through the shortcut passages which we directly connect to the roots attached with the direct destiny. It is only possible through a two-wheeler as it is short, fast, stylish, and more secure than the four-wheeler.

The safer and affordable loan process-

If the banks are governed by the Reserve Bank of India and follow the government's rules and regulations, there is complete safety regarding the loan procedure. All the terms and conditions, including the rate of interest charges and processing fees, low Two-wheeler Loan Interest Rates and the other types of fish that will be charged, are always clearly mentioned. There has been the implementation of various schemes of refrigerant options which are very much pocket friendly and suitable as per the choices of the customers. It will take a maximum of 1 minute to disperse the loan amount to the customer's bank account if the loan is pre-approved.

Keeping the cash for emergency purposes-

The cost of a two-wheeler is quite good enough to maintain the budget, but availing alone instead of paying the total price is much better as it will free up your funds for emergencies and personal expenses, especially during this time of financial crisis of the whole world.

Creation of the loan profile-

When a loan is availed, the financial structure of a profile of an individual is also tracked by the credit agency bureaus like that of the CIBIL etc. Suppose a person will take an enormous amount of loan for any significant purpose but to make the crates for good or rebuild the credit score. PNB Two-wheeler Loan provides good facilities for the customers. In that case, a bike or the two-wheeler loan is one of the best options to do so as the instalment is not weak but timely payment of which will be possible for the person and in return due to the timely payment the credit score will keep on rising to a positive slope which in turn will give a positive effect for availing for applying for any loan in the future. It will turn in favour of the customer. Now the question arises of how credit score dampens or gets affected due to the ignorance of the payment at the right time. When a person does not pay the loan amount at the right time, it gets affected on the credit score and keeps on decreasing until the time the payments are not made correctly, due to which it erodes your past good performances and makes you think nowhere in the world.

Perks of the tax benefits and the depreciation-

Suppose the person of the individual applying for the loan is self-employed for a salaried. In that case, one can have the tax benefit and the depreciation benefit on the interest repayment of the two-wheeler loan. Some conditions if anyone wants to get the benefit by following the specific criteria according to the circulars. There are some conditions based on which the facilities will be provided only for the vehicle used by you for your business or profession.

Involvement of the financial discipline-

When there is a monthly expense payment, one will always play a safe side to be in a position to adequately execute. The other expenses and the requirements are also appropriately made. There will be efforts that will result in having a source of income which will give rise to following up discipline for excellent financial stability.

Also read this: Two-wheeler Loan Process And Its Implementation 

At the point when you think about a two-wheeler, all things considered, you are considering bikes, bicycles, and mopeds. A recently bought two-wheeler can keep going for more than 1 lakh kilometres and picking a correct two-wheeler would give you the opportunity to weave your way through the packed streets to work, travel to a cookout spot with companions or surrender to the hunger for new experiences for an excursion tough with no concerns.

For the individuals who are taking a loan unexpectedly, you first need to comprehend the terminology or expressions that the banks will utilize.

Loan Amount : 

It is the amount that you take as the loan. It is additionally alluded to as the chief amount. The loan amount you are pertinent for considers the expense of the two-wheeler and your reimbursement capacity.

Interest Rate : 

The interest that the borrower is relied upon to pay on the chief amount is determined to premise a specific rate called as the Two Wheeler Loan Interest Rate. It begins as low as 0.99% per annum at MCSL.

EMI or Equated Monthly Installment : 

It is the amount that the borrower is required to pay the moneylender consistently. With every portion, you are repaying an aspect of the chief amount and interest collected on the loan.

Loan Tenure : 

It is typically the number of months inside which you should reimburse the two-wheeler loan. You have the alternative of picking the tenure going from 12 four years.

Reimbursement Capacity : 

Your present pay and costs alongside different loans you have are considered to pass judgment on your reimbursement capacity. It assists with figuring the EMI you can pay serenely for the full tenure. The reimbursement capacity directly affects your loan amount qualification.

Processing Fees : 

It is a one-time, ostensible charge for processing your loan application. It is safe to say that you are tired of staying aware of the transport plan or those silly flood tolls that taxis charge? Or then again not finding the autos or taxicabs precisely when you need them the most? Why not take a two-wheeler and wipe out every one of those issues? Fortunately, claiming a two-wheeler isn't as outlandish as it might have appeared to be several years prior.

For what reason Should You Take a Two-Wheeler? 

First of all, you may not be very persuaded to take a two-wheeler on the off chance that you are utilized to public vehicle. We additionally have heard commonly that two-wheelers are terrible speculations.

All things considered, here are a few realities that may attempt to persuade you why you ought to apply for a two-wheeler loan and get one soon-

• In the current pandemic circumstance and social separating, it is more secure and prudent to drive on a bicycle as opposed to utilizing some other methods for the public vehicle.
  
  
• You can undoubtedly zoom through traffic and invest less energy holding up at the traffic lights. It's hard to believe, but it's true, as individuals trust that the street will clear up, you can simply squirm your way through traffic and advance beyond your four-wheeler partners.
  
  
• They are a lot simpler to keep up when contrasted with four-wheelers.
  
  
• The rate of endorsement for loans for bicycles is higher than those of four-wheelers.
  
  
• Two-wheelers don't contaminate as much as a four-wheeler because of better eco-friendliness.
  
  
• Generally, they are more efficient than four-wheelers.
  
  
• They have a decent resale value.

The inconveniences related dangers due to Coronavirus pandemic of the public vehicle will be a relic of times gone by with a two-wheeler. Apply for Bank of India two wheeler loan and experience a smooth and bother free loan application experience. Pick a two-wheeler loan and become a glad proprietor of another bicycle.

Read More:- What are the uses of a two wheeler loan?