TWO WHEELER LOANS FROM BANKS OR NBFCs: -

16 Jul

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: -

Most of the Non-Banking Finance Companies (NBFCs) and banks finance upto 100% of the on-road price of the two-wheeler vehicle.
In most cases, the loan amount also includes the cost of registration and the insurance cover of the two-wheeler vehicle.
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.
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.
There are pre-approved two-wheeler loans for the existing customers in some of the banks, and they can be instantly disbursed.
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.
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.
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: -

ID Proof ( Aadhaar Card, PAN Card, Passport, Driving License, etc.).
Address Proof
Income Proof ( if required)
Passport size photographs
Statement of the banks from last six months
PAN Card
Form 16 ( for the self-employed individuals)
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.