THINGS TO CONSIDER BEFORE SIGNING A TWO WHEELER LOAN AGREEMENT
The qualifying for a two-wheeler loan varies as per lending institution or banks, but the one thing they all have in common is a low interest rate. Bike loan interest rates are relatively cheap as they are another approach to achieve your financial objectives and personal requirements in this day and age of reasonable interest rates, flexible Equated Monthly Installments (EMIs), and convenient tenures. A Two-Wheeler Loan EMI Calculator helps in estimating the EMI cost from the overall disbursed loan amount.
DOCUMENTS THAT ARE REQUIRED FOR AVAILING A TWO WHEELER VEHICLE LOAN: -
The following are the documents that are needed if you want to avail of a two-wheeler vehicle loan: -
- Identity Proof such as Aadhar card, PAN Card, Voter ID, Driving License, Passport or any Government issued ID Card.
- Address Proof such as Passport, Voter ID, Electricity Bill, Telephone Bill, Driving License, etc.
- Age Proof such as Voter ID, PAN Card, Birth Certificate, school leaving certificate, college leaving certificate.
- Income Proof such as Form 16, latest three salary slips, bank statement of the latest six months.
THINGS TO CONSIDER BEFORE SIGNING A TWO WHEELER AGREEMENT: -
If you are someone who is deciding to buy a new two-wheeler or you have been considering getting an Dena Bank Two Wheeler Loan, here are the five things that you need to take care of before signing for a two-wheeler vehicle agreement: -
- YOUR CREDIT SCORE: As we all know, most of the two-wheeler vehicle loans in India are unsecured. The first and foremost aspect that the moneylender considers is your credit score. The credit score depends on the following four main factors: -
- The total number of loans that you have taken up in the past.
- The total amount of loan that you have taken in the past.
- The total number of timely payments that you have made.
- The total number of payments that you have missed.
- In India, a credit score on a scale of 900 is given to every borrower. Also, you can apply for a two-wheeler loan online, provided you have a good and well-established credit history.
- TYPE OF LOAN: - There are two main types of loans available in every category, Secured and Unsecured Loans. A secured two-wheeler loan is a loan in which you need to pledge any asset or collateral or security of the same value as the loan amount. On the other hand, you do not have to pledge any asset or collateral if you apply for an unsecured loan. Most of the two-wheeler vehicle loans present in India are unsecured, and there are some money lenders available too, who offer lower interest rates.
- TENURE OF YOUR LOAN: - The third important aspect that you need to consider before applying for a two-wheeler loan is the tenure of the repayment. Most of the lenders offer tenure of 12 months to 60 months. This kind of long tenure is provided to the borrower to balance his expenses and the EMIs without any stress effectively. However, the tenure of the loan repayment is inversely proportional to the amount of the EMIs. It means if you opt for a longer tenure, you will have to pay a smaller amount in the EMIs and vice versa. So, it is better to opt for a two-wheeler vehicle loan that has a shorter tenure.
- NATURE OF THE INTEREST BEING CHARGED: - The interest rate can mainly be divided into two main categories: - Floating and Fixed. A floating rate of interest is when the rate of interest fluctuates with time, depending on a lot of factors like the loan amount which has to be paid, present conditions of the market, credit score, etc. A few money lenders offer a floating rate of interest on the two-wheeler loan provided by them. On the other hand, a fixed rate of interest has been mutually decided by both the lender and the borrower, and it will remain the same throughout the tenure.
- DOCUMENTS REQUIRED: - The documents that are required for applying for a two-wheeler vehicle loan are basic. As mentioned above, the documents are Identity Proof, Address Proof, Income Proof, etc.
Also read this: TWO WHEELER LOANS FROM BANKS OR NBFCs: -
