Two-wheeler Loan Pre-Payment Options

HOW TO IMPROVE A TWO WHEELER LOAN ELIGIBILITY? 

If you are really in need of a two-wheeler vehicle and want to apply for a two-wheeler vehicle loan, here are the ways in which you can improve the eligibility of a two-wheeler loan: - 

1. MAINTAIN A HIGH CIBIL SCORE :-

The first and foremost thing is to maintain a high CIBIL score. It can be done by making the timely payments of the dues of credit cards, closing all the previous debts, checking the discrepancies in the report of credit and making a balance between secured and unsecured loans. By this, you can maintain a good CIBIL score. An ideal CIBIL score is around 700, which the money lenders prefer. For example, if you want to apply for an Oriental Bank of Commerce Two-Wheeler Loan, your credit score must be around 700.

2. CHOOSE A LONGER TENURE OF REPAYMENT :-

The longer the tenure of repayment, and the longer will be the time to pay off the loan EMI. Also, the rate of interest and the tenure of repayment are inversely proportional. Therefore, if you want to have lower interest rates on your monthly EMIs, you can opt for a longer loan repayment tenure.

3. OPTING FOR A JOINT LOAN-:-

By this option, we mean that if you have a co-applicant, the eligibility of the bike loan will improve. It will be because the salary or the monthly income of both the applicants will be taken into account by the moneylender. You have to make sure that the co-applicant you are choosing has a good credit score and a stable income source.

4. SHOWING ADDITIONAL INCOME SOURCES :-  

The moneylender or the bank just wants the satisfaction that the borrower will repay the loan. The additional sources of income can be mutual fund dividends or rent from any other property.

TWO WHEELER LOAN PRE-PAYMENT OPTIONS: -  Most of the banks offer the prepayment option for the loans that they provide. Prepayment means that the borrower can close the loan sooner, much before the completion of the tenure of repayment. The prepayment of the loan is done by most of the customers because it helps them to get rid of the financial burden. However, one may have to pay some pre penalty charges. A person can close the Two-Wheeler Loan in two ways mainly: - 

• OFFLINE METHOD: - Following are the steps that one needs to follow if completing he/she wants to prepay the loan via this method: -

1. Check the lock-in period- You cannot repay the loan in a lock-in period but after that.  The lock-in period can be between 3 months to 6 months
2. Call customer care- You can know about the outstanding amount due to be paid for the loan by calling customer care.
3. Prepayment charges- Some of the lenders or banks charge a prepayment penalty, so you should find out the amount and pay for it.
4. Acknowledge the email sent- Your bank or the moneylender will send you an email containing your prepayment information. You have to acknowledge the email and confirm that you will prepay your loan.
5. Payment- You can then pay the loan’s outstanding amount and the pre-closure charges by a cheque or a DD.

6. NOC Certificate- The most important thing is to collect the NOC certificate. It is proof that shows that you have prepaid your loan and are left with no dues.

• ONLINE METHOD: -  You have to follow the following steps if you want to prepay your two-wheeler loan online: - 

1.  Add/Link your bank account to your internet banking profile.
2. Now you can view your loan account ledger and can continue the transactions.
3. To make the prepayment, you have to transfer the money to your loan account. 
4. A loan account is like the other savings account, and it has an account number and an IFSC code.

However, if you are not comfortable sharing this much information about your bank account in the online method, you can follow the offline one.

Also read this: Things To Follow to Avail Two Wheelers Loan