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Legitimate organizations like banks and Non-Banking Financial Institutions(NBFCs) present a scheme to the public, where cash can be availed as a principal in return for the temporary submission of gold while paying monthly interest for the amount availed, i.e. loan in addition to paying the loan on full at the end of the term(tenure). Having a loan means being able to pay for things and have things that most times are necessary.

How do you avail a gold loan?

Know your options; choosing the right lender is the most important thing; a gold loan is secured, meaning it needs collateral, and the collateral is your gold, so you can’t just go to your street-end bank and take out a loan. You have to do credible research on the bank or financial institution before filing an application. It must be a trustworthy, safe and a reputed bank or financial institute. Broadly preferred choices are banks and NBFCs. Banks offer comparatively less amount for low-interest rate, whereas NBFCs are more liberal with the principal but charge high-interest rates.

You can use a gold loan calculator from the official website of banks and NBFCs to know your offers. For example, Manapuram gold loan offers online and offline services with flexible interest rate and tenure. They do home pick-ups which means the officials arrive at your house and sanction loans.
When can you avail this loan?

This secured loan can be availed at any time of the year for any need. Few among the many options are:

Wedding: Gold is a fancy material owned and used by many, and a wedding is a good place for that, but what if the wedding doesn’t have enough funds to go on? What good is the gold then? The gold is great then; you can just go to your most trusted bank, submit your loan and other required documents, you have money, money that could make weddings happen, beautifully, ostentatiously and happily.

 
Higher Education: with knowledge comes money, but it is vice-versa too. Sometimes even for the most benevolent reasons, money seems to be a wall, standing in between you and success. If then you have valuable gold articles, they can be used to reach that success, to attain your dream and make your passion come true.

 
Medical emergency: Medical emergency is a tragic happening but doesn’t allow the patient to enter the operating room without paying bills on their counter in most private hospitals. And gold loan for that time is the perfect reason one can find to avail one. It is fast compared to many other loans, and instant disbursal ith low-interest rate which makes you worry less about payments. Most people all around the world opt gold loan for this reason alone.

Advantages of gold loan

Low-interest rates: The most tempting part of the loan is its interest rate, which lies in the range of 7.5%-14%, and if you happen to be a farmer, you can avail this loan on a lower interest rate than this, after providing documentation of the agricultural land.

Tenure: Gold loan offer a loan term only for a maximum of 4 years, and in most banks, it is only two years, and financial institutes offer terms less than that. So the interest rate you provide won’t be for a long time, and you can have your money bank as soon as you pay the principal.

Preclosure/foreclosure charges and processing fee: if the cash flow surges in your account, don’t waste the amount; prepay your loan, which saves you a lot of money. Financial institutes and banks mostly charge zero, but few banks and NBFCs charge upto 1% of the loan amount. In the case of the processing fee, NIL too, except in a few banks and NBFCs, which may charge 0.5% of the loan amount plus other taxes.

Also read this: Avail Gold Loan New Borrowers 

On the other side, we can see that it is upon the planning and the style of expenditure by following some rules and regulations to have some financial equilibrium without which if it is not followed then after a long period or after one or two generation automatically the effect of financial redundant will be seen to start which will keep on increasing day by day afterwards. During providing any two-wheeler loan from any loan provider, some self-planning and the planning as per the terms and conditions of the bank or the financial institution from where the loan is being provided should be made before time in hand so that no problem arises while following the procedure.

I am selecting a two-wheeler before knowing the approved amount of the loan.

• One of the biggest mistakes that most loan borrowers make is selecting a bike or two-wheeler as per the choice of the desire, which has been waiting for so long without knowing the amount of loan which has not been approved. It means that there will be uncertainty that what type of loan amount will be sanctioned that is unknown and upon that a risk factor is played as a game by selecting the bike while keeping in mind will be having the intention of this or that will be ok with the loan repayment. Still, life always shows something different in each step, and it can turn out to be less amount of loan as compared to what was thought in mind and for which all the preparations and planning are done on that basis will be totally gone in vain and again after that needs to start again.

Over borrowing

• The other most frequent mistake which one makes is the excessive borrowing of the over borrowing beyond the budget. This type of mistake generally happens with the new applicants, who are the new two-wheeler loan buyers who are doing it for the first time. It is just like a slippery soap, and at what moment it will slip out of the hands, it will not be understood. It might make which generally happens to have the shortfall and to add more fund to repay the EMI by cutting down the other kinds of expenses and to the words exchange one can also result in learning into unable to pay the whole amount at all which in turn gives a very negative impact on the good, and that is also in return will provide various and in the coming future for availing any the loans.

Well designed documents are not read properly.

• Just by going through the different kinds of advertisements and basic knowledge as most loan-application things that they know everything and due to this nasty habit, their land into different kinds of dress and gets into fraudulent activities that affect their personal, professional as well as financial life. They always get attracted by the words of the officials who are leading the gear of selling the loan agreement. The documents related to the two-wheeler loan involves many types of terms and conditions and other types of important information regarding the loan, like that of to confirm whether the interest rate is fixed or reducing balance one or there will be flexible types of the repayment schedule and the flexible repayment options will be available or not like that of bullet repayment scheme, EMI scheme paying the interest throughout the year and paying the principal at last during the expiry of the term etc.

No research

• There is no involvement of any research because most of the time, it has been seen that before self the decision of the others are believed and trusted as a first option in the form of either the person is a friend or a  relative or someone else. They do not think that each person is having a different situation and the capacities based on which they make the decision. For example SBI Two Wheeler Loan  have a unique criteria to do research on behalf of customers  for their interest. Still, it is not good to implement that same decision on self without executing and judging what the situation and the capability are, and that needs to be evaluated by the particular person and then should take a decision after comparing facilities of the loan providers.
  Also read this: CHARGES INVOLVED IN A TWO-WHEELER LOAN 

Home loans can be availed without shredding sweat flexibly in numbered days from financiers. But to avail of a home loan, certain factors need to be considered and pondered over before standing before a bank.

Factors Affecting The Eligibility Criteria Of Home Loans

1) Age: Age is a significant factor in the eligibility criteria though anyone between the age of 18 and 75 can avail a loan in most banks and NBFCs, the applicant’s who are at the beginning of their career or an official who is about to retire soon have high eligibility rates as they can pay the amount soon without much hassle.

2) Income: The applicant requires a stable income or profit to become a home loan borrower. Salaried and self-employed individuals are preferred mainly by the banks and NBFCs to avail the loan. Adding an extra member of your family as a co-applicant can enhance your eligibility, as two members are better than one in paying off the debt. The minimum stable money required in their bank account to avail the loan is Rs.25,00 in most banks and NBFCs.

3) Credit score: The CIBIL score or the applicant’s credit score weighs a lot in determining eligibility. A good credit score is one above 750 and has a high chance of getting the loan. In addition, the score takes into consideration your previous loan history, and how you’ve paid your monthly payments and the kinds of loan or debt you’ve borrowed in the past. This helps the lender in assessing your repayment capability.

4) LTV and property details: Loan to Value ratio is the principal amount a bank or NBFC grants for the asset, here the home. Depending on the property’s value, bankers evaluate the money they can sanction as the loan amount. So if the property’s value is high, there is an elevated chance of getting more amount. If the loan is for buying a new house and not a loan against a house, the lenders consider your down payment capacity, and if the applicant can pay 20% or more, the chances of availing of the loan soon are high.

5) Existing debts: if the applicant has loans or debts in his/her name already and has to pay high monthly interest, the bankers hesitate in sanctioning, but if the profit or income is more than enough to cover all your loans, they approve it fast. Therefore the repayment capability of the applicant plays a major role in the approval process.

Factors Influencing The Interest Rate On A Home Loan

The applicant needs to consider the home loan interest rate a huge factor before availing of a loan.

1) Interest type: There are two types majorly in how the applicant can pay a monthly instalment. They are floating and fixed interest rates. Floating interest rate changes each month according to the financial markets, low or high, the applicant doesn’t know. Budget planning is difficult and involves high risk but paying a low interest rate compared to a fixed interest rate each month is possible. In fixed interest rates, the monthly instalment amount is fixed by the NBFC or bank, and it doesn’t vary over time. Therefore, budget planning is possible and involves low risk. A Home Loan EMI calculator on the bank’s official website or NBFC can be used to calculate the interest amount.

2) Loan term: The tenure or loan term is the period of the amount the applicant avails the loan for. It may vary from 5years - 25 years, depending on the bank and NBFC. If the tenure is long, the monthly instalment amount the applicant has to pay each month is low and vice-versa.

3) MCLR rates: Marginal Cost Of Funds Based Lending Rate is the minimum interest rate a bank can lend the loan amount at. According to the tenure, the bank or NBFC fixes a date for the applicant, and the interest rate for that year may vary depending on it. Therefore the MCLR can increase or decrease your interest rate each year and weighs a ton in affecting the monthly instalment amount.  

Also read this: Home loan available offline or online? 

Gold has more than just monetary value in our country. It is considered a status symbol. A precious metal with which people have an emotional attachment. People usually take a gold loan to fulfil their urgent need of funds may it be for any emergency purpose or leisure. In a gold loan, the borrower pledges some gold at the bank or the NBFC and in return gets a loan of a certain value. The repayment of the loan is bound to the tenure chosen by the borrower and is paid in EMI’s ( Equated Monthly Instalment). The profit of the bank in giving out the loan is the interest that it charges on the loan. The monthly EMI is a mixture of loan principal amount and interest. The central bureau maintains a record of each EMI paid and the borrower’s payback pattern. 

Not many people know but each timely payment of EMI contributes to their credit score and also each default in payment. CIBIL score is an important factor that lending institutes consider while offering any loan. In the case of a gold loan cibil score of the borrower is not the priority so even an average score would do just fine. This is because the loan is secured by pledging gold to the institute.  

An individual doesn’t need a good credit score to avail of a gold loan but their availing of a gold loan improves their credit score. The timely repayment of the gold loan EMI’s contributes to the growth of credit score. These days gold loan per gram is an offering by most lenders. Under this scheme amounts as low as the equivalent of 1gm gold can be availed. This scheme enables people with a low financial background to also avail themselves of gold loans. A credit score is calculated by taking into consideration of four factors. They are as followed:-

• Credit history - Your old credit repayment behavior is analyzed. Default in payment of EMI on time could impact your credit score.
• Total Debt - This takes into consideration your total debt to income ratio. The rising debt could impact the growth of your credit score.
• The balance between secured and unsecured loan - A proper balance between secured and unsecured loan has to be maintained. Too much of either could be bad in long run.
• Frequent Enquiries - Too many credit score enquiries could have a negative impact on your credit score.

Thus these are the factors considered while the bureau calculates an individuals credit score. Gold loan offered by various lending institutes at varying rate of interests. Muthoot Finance gold loan is an offering by a pioneer in this field. Interest rates starting at just 12% per annum. It is one of the only few to provide gold loans of a lower limit of 1500 rupees only with no upper limit. They also provide a flexible repayment system with tenure of the loan ranging from 7 days to 36 months. The best part being no foreclosure charges meaning that the loan can be settled before its maturity at no extra cost. This makes the bank and its offering flexible and user friendly. Therefore gold loan can contribute to the growth and fall of your cibil score but when used wisely it will contribute to your credit score which will make it easier for you to avail any type of loan at better offers. 

Conclusion: CIBIL score has its importance but the majorly in unsecured loans segment. In gold loan collateral is involved therefore the need for a good credit score is not a priority but on the other hand, the gold loan repayment will make your credit score strong and that has many benefits.

Also read this: Some Unknown Facts About Gold Loan 

Without any hassle, a car loan can be availed either by meeting the banker and signing documents or just by clicking a few buttons from anywhere in the world. A car loan is still a loan that needs to be paid back to the loaner. A Car Loan emi calculator can be used to calculate the monthly installments you’ll have to pay for the loan amount availed.There are many repayment opinions on how you can pay off your loan and monthly installments and few tips that can help you back efficiently.

Car loan repayment methods -

Regular EMI : 

Equated Monthly installments (EMI) is the interest amount you have to pay for availing the car loan each month. This method to repay is the most common and highly used among peers. The interest amount is calculated based on the tenure and loan amount. Each payment can be done either at the beginning or the end of the month, known as “monthly in advance” for the former and “monthly in arrears” for the latter.

Step-up EMI : 

A step-up loan is one where you can pay lower EMI in the initial months of the tenure and keep it increasing as the months pass in the tenure. This type of repayment is suitable for people who have just begun their careers and are sure to see a swell in income or profit. This type of repayment option could also benefit people who want luxurious cars but can only afford small cars. The Car Loan interest rate is quite higher than adopting the standard EMI payment option.

Step-down EMI : 

The monthly installment amount is higher at the beginning of the tenure and gradually decreases as the months’ pass. This method is beneficial for people who can afford large payments initially and have difficulties later in paying. All banks and NBFCs offer this method.

Special tie-up method : 

In this method, a tie-up relation is formed between the banker and loanee. Whenever a loaner meets an increase in profit or income or any other bonus the money is transferred directly to the loan repayment. This is highly beneficial and is opted by many. A special tie-up method for repayment helps in reducing the total interest amount and principal.

Ballon EMI : 

Ballon EMI method is one where you can pay low-interest rates throughout the tenure but have to pay the remaining interest amount along with the principal at the end of the tenure. This option is preferable for people who can pay only a small amount of interest each month.

Tips to manage your repayment -

Down payment :

Banks and Non-Banking Financial Institutions offer 90% of the car’s ex-showroom value as loan amount, some banks even offer100% of the car’s value, but economists advise that at least 20% of the car’s value should not be of the loan amount but of the loanee’s own money. Making the maximum down payment increases the loan amount, which thereby increases the interest’s value.

Tenure : 

A common misconception is that choosing along tenure reduces monthly interest amount on large. Though it is true that a long tenure gives a low monthly interest amount each month, the total amount you’ll be paying as interest is higher than choosing a short tenure and paying a slightly high-interest amount every month.

Snowball payments : 

This method is convenient if you have multiple loans. You can start by paying off the loan with the maximum interest amount or the loan with the smallest debt. If the former is chosen, you gradually move on to the next loan with the second-highest interest amount, so on and so forth. If the latter is chosen, you first pay off the loan with the smallest debt, then the debt with the comparatively high principal than first.

Debt consolidation : 

This method is beneficial if you have multiple loans that are difficult to keep track of. That is if you keep missing interest payments and other charges you can combine all the loans to one single loan with paying only one interest rate and principal amount.

Also read this: Is Credit card safe for me 

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 payments structure and its Flexibilities 

What is a personal loan?

It is an unsecured loan that can be applied at any bank or NBFC. You can use the funds you get from a personal loan for various purposes like debt consolidation, vacation, wedding, child's education or miscellaneous expenses. Banks don't monitor the usage of funds that have been given through personal loans. So customers have the flexibility to use it however they want. 

You'll have to repay the loan amount that has been given through a personal loan in instalments along with the interest rate. However, the interest rate of personal loan is comparatively higher than two-wheeler loan. 

Banks only approve your application if you're eligible. So you'll have to meet all their eligibility criteria to get your application approved. Your credit score plays a significant role in determining your eligibility. You can quickly get your loan approved and disbursed if you have a good credit score. But if your credit score is insufficient or inadequate, some banks like Dena bank two-wheeler loan or Axis Bank can reject your application. But some lenders will approve your application. Instead, they'll charge you with a high-interest rate. 

So it's essential to maintain a decent credit score. In case you're unable to repay the loan amount, then it will negatively affect your credit score. And a bad credit score can make it hard for you to get a loan next time. 

Advantages of personal loan

Let's check all the advantages that can be availed if we're purchasing a two-wheeler through a personal loan: 

1. Flexibility: Customers get the flexibility to use the money however they want. So there's no restriction on the usage of funds. They can use the funds they get for various purposes at the same time.
2. Down payment: You don't necessarily have to make a down payment. 
3. Interest Rate: The interest rate of personal loans is very high. It starts from 10%. 
4. Application: The application process is very easy and can be processed in a few days. The approval time is less when compared to other loans. 
5. Credit score: You have to maintain a decent credit score to avail the facility of a personal loan.
   
   

What is a two-wheeler loan? 

A two-wheeler loan can be both a secured and an unsecured loan. It depends from one borrower to another. A lot of banks and NBFCs (Non-Banking Financial Companies) across the nation provide this loan option. The funds that are given by the bank through a two-wheeler loan can only be used to purchase a two-wheeler. Therefore, a lot of banks disburse the money to the dealer bank account instead of the borrower.

Advantages of two-wheeler loan

1. Usage: The money you get from a two-wheeler loan can only be used to purchase a bike, scooter, or another two-wheeler. 
2. Down payment: Banks ask for at least 10%-20% down payment of the on-road cost of the two-wheeler. Making a huge down payment can help you to reduce your burden of paying a huge EMI. You will also save a lot of money that would've paid as the interest rate. 
3. Interest Rate: The interest rate of two where a loan is a lot less when compared to the personal loan. You can reduce your interest rate even more if you are eligible and can negotiate. 
4. Application: The application process of a two-wheeler loan is not as fast as a personal loan. But banks try their best to process the loan as fast as possible because it takes time to coordinate with the vehicle dealer and the lender. 
5. Credit score: If you're applying for a two-wheeler loan as an unsecured loan, then you'll have to maintain a good credit score. But if you're applying for this loan as a secured loan, then you can be relaxed as there is collateral.
   
   

Conclusion: 

Both personal loan and two-wheeler loan has it's advantage, feature and benefit. You can compare all the factors and then check which one is the best loan option according to your situation and requirements.

Also read this: A Perfect Personal Loan For You 

(CIBIL) Credit Information Bureau India Limited, a TransUnion subsidiary is one of the RBI-approved credit rating agencies in charge of generating credit scores for individuals and businesses based on data provided by banks and lending institutions. There is no set score for obtaining a bike loan, but it is widely assumed that all financial institutions accept a score of 600 or higher. While a good CIBIL score makes it easy to get credit, a low score can make it difficult to get credit when you need it. If you have an existing bike loan or have just been denied a bike loan application and have quickly applied for another loan, the new loan application is more likely to be denied. This can further damage your credit score. But what exactly is a decent CIBIL score? Here's all you need to know about achieving a high CIBIL score.

The best part of a two-wheeler loan is the Two-wheeler loan EMI calculator. Nowadays, practically everyone can afford a two-wheeler, whether they pay cash or take out a loan. Many lenders provide a two-wheeler loan so that an individual may easily buy a bike or scooter. However, before you take out a loan from a bank, you should be informed of the EMI. As a result, everyone must utilize the two-wheeler bike loan EMI Calculator before applying for a loan from a bank. The EMI Calculator, on the other hand, will assist you in determining the monthly payment that you will be required to make on a certain bike loan. As a result, you must investigate the aspects that will influence the volume of EMI.

Several factors determine the amount of EMI and they are the rate of interest, tenure, and principal amount. Considering the interest rate of attaining EMI make sure that you ensure the interest rate is reasonable so that you can pay the monthly EMIs. While looking on to the tenure for the bank to repay the loan it is advisable to pick a long repayment period for your loan, the amount of your EMI will be as follows. Choosing a loan for the short term, on the other hand, will result in a high EMI. As a result, you must select the loan tenure based on your ability to repay because your EMI will be debited every month for the duration of your choice. And finally when considering the principal amount of the loan, If you have borrowed a large sum of money from a bank, it is expected that your EMI would be large. However, making partial down payment for the two-wheeler and taking out a loan for the rest would result in a reduced EMI. As a result, the principal amount is also a component in the Two Wheeler Loan EMI calculator.

It is generally a good idea to have several alternatives available for picking and comparing different lenders. You will be successful in obtaining a two-wheeler loan from the correct lender with a better interest rate, terms, and circumstances if you conduct sufficient research on it. This has been facilitated by the PNB Two-wheeler loan scheme with a proper repayment tenure and low-interest rates possible. PNB also enables us with an EMI calculator to simplify the avail of the results displayed immediately. Two-wheeler loans are also available to people who have the financial means to pay for the bike in one lump sum. They perceive that by repaying the loan in monthly installments, they would be able to invest their earnings in numerous profitable investments. The vehicle acquired with the loan's proceeds must be held in the trust to the bank. It will be jointly registered in the borrower's and the Bank's names.

Also read this: Two-Wheeler Loan Process 

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: -

1. 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.

2. 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.
   
   
3. 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.
   
   
4. 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.
   
   
5. 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 Loan In Detail 

The features of a two-wheeler vehicle loan are summed up in the following points: - 

1. Most of the banks and the other Non-Banking Finance Companies (NBFCs) finance upto 100% of the on-road price on the two-wheelers.
   
   
2. The cost of registering the two-wheeler and the insurance cover is also included in the amount of loan in most cases.
   
   
3. The interest rates on a two-wheeler vehicle loan are low compared to the other forms of a secured loan. The interest rates start from 9% and can extend upto 26%. The interest rates are based on the borrower’s credit profile, the borrower’s credit profile, and other factors.
   
   
4. The tenure of the repayment of a two-wheeler vehicle loan is usually upto four years. Some of the banks or the NBFCs offer upto five years for the repayment of the loan, but it is not very common.
   
   
5. There are some pre-approved loans as the two-wheeler vehicle loans available for the existing customers in the banks. These loans are instantly disbursed and approved.
   
   
6. Most of the two-wheeler showrooms have tie-ups with some of the banks for the two-wheeler vehicle loans, and the loan can be applied from the showroom of the bike or the vehicle. It is done in order to make it easy for the borrower.
   
   
7. The documentation involved in a two-wheeler vehicle loan is simple, fast and minimal.
   
   
8. Some of the banks also offer special low down payments and EMI schemes for the easy repayment of the loan.

DOCUMENTS REQUIRED FOR APPLYING FOR A TWO WHEELER VEHICLE LOAN: - 

There are not many documents required for applying for a two-wheeler vehicle loan. The basic documents are needed such as: - 

• ID Proof - Aadhar Card, Driving License, Passport.
• Address Proof
• Income Proof
• Passport size photographs
• Bank statement of the last six months.
• Form 16, for self-employed individuals.
• Income Tax Returns.

The list of the documents might vary from one lender to the other. Therefore, it is suggested to check the documents that are needed in the bank. Different banks have provided a list of the documents on their official websites.

HOW TO GET A TWO-WHEELER LOAN?

Here are a few steps that will help you to get a two-wheeler loan: - 

1. Verify your creditworthiness: - When you apply for any loan, the bank you apply to runs a check on your CIBIL score. This is done to verify your creditworthiness. If you have a good CIBIL score, it will mean that you have the ability to repay all your debts on time. In addition, it increases the chance of you availing of the loan. Therefore, before applying for a two-wheeler loan, you should check that you have an excellent CIBIL score. It has to be around 700.
   
   
2. Set your monthly budget: - It is the most important thing you need to take care of. Before making any purchase or taking any loan,  you should know your budget. You should apply for a loan that has an affordable EMI. You don't want that two-wheeler you buy to be a financial burden on your shoulders. Therefore, to ensure that, you should make a budget and stick to the requirements.
   
   
3. Compare the options: - There are many banks available that provide different loans with different interest rates. So, if you are planning to apply for a loan, you should compare different loans available, at least five, their interest rates, the tenure of the repayment and other benefits, and then should select the one which is the best for you.
   
   
4. Select a trustworthy lender: - As a lender or a bank checks your CIBIL score and creditworthiness for his satisfaction, in the same way, you should also check the creditworthiness of the lender. The loan providers who are well established and clear have pre-decided terms and conditions.

CONCLUSION: - A Yes bank two-Wheeler  loan is one of the best ways a person can consider if he plans to buy a new two-wheeler or even a second-hand bike. The amount of the EMIs is low, and the person can easily repay the loan while balancing the other expenses.

Also read this: Factors affecting credit score for two wheeler loan 

An SBI two wheeler loan application is quite a simple one that can be completed online or by visiting RBL bank branches This loan offers various benefits for the borrower. A CIBIL Score is an important factor while obtaining any loans as a Credit union devises this score. There are no specific rules which imply that an individual with a poor credit profile can’t obtain a loan. Usually, a high-interest rate is incurred as it involves the risk of repayment of the debt. This Score is assessed by every bank or NBFCs while obtaining a two-wheeler loan measured on the scale of 100-900, and 700 is termed as excellent and is valid up to the span of 10 years. A good credit profile shows the candidates creditworthiness and good debit history. A steady income and a good profile are considered a good candidate in the loan approval process.

A CIBIL Score less than 650 is termed a bad credit score, and less than 450 is poor. These scores can have a negative impact on the credit report of the individuals. The few causes which can lead to a poor credit report is late or deferred payments, too many credit enquiries, credit card dues, debt consolidation.

Late or deferred payments - A late repayment or missed repayment can cause harm to the credit score with a surplus interest charge on the subsequent payments. An individual should maintain regular repayments of the debt. Deferred repayments are the worst worst-case scenario for your credit score. Failure to make even one payment might result in a skeptical assessment of your overall score.

Too many credit enquiries- While obtaining a loan, banks and NBFCs request credit unions to analyze your credit report. This enquiry is mentioned in the report with the date. If the lender sees multiple enquiries around the same time, it can have a bad impression as too much eagerness for obtaining a loan. This can lead to loan rejection.

Credit Card dues- A credit card is a beneficial option to use instead of cash while making a purchase. Nevertheless, its repayment has to be made monthly. If one doesn’t make regular repayments, then a colossal amount can be accumulated as due, which can cause a financial burden upon the individual and thus negatively impact the credit score.

Debt consolidation- If an individual has already a prevailing debt and wants to obtain another loan, the bank estimates your past transactions and debt repayment. It also analyses your repayment capability to ensure that you are credible to repay the existing debt with a loan you applied for. Any past missed repayments can lead to loan rejection.

There are some ways to overcome this situation to improve your credit score, such as having a cosigner, Examining various lenders, offering better lending terms while obtaining a two-wheeler loan.

Cosigner- A Cosigner or guarantor helps in securing the loan. As the debt obligations depend on the cosigner or guarantors shoulder when the borrower fails to make the repayments. The creditworthiness of the cosigner or guarantor is taken into consideration and is liable to repay the debt. Suppose the cosigner or guarantor refuses to make the repayments when the borrower is deceased or unable to pay. In that case, the bank has the authority to take legal action against him/her and impact the credit profile.

Examining various lenders - an individual must do market research to better deal with less interest rate and processing fee with a wider tenure for a two-wheeler loan. Nowadays, lenders are assessing the borrower’s background and income to qualify them as an eligible prospect. A lenders creditworthiness should be examined before obtaining a loan.

Offering better lending terms - There are a variety of conditions that may have led you to make a mistake on a previous loan and may still have an impact on your credit score. Even though the interest rate is somewhat higher, it is usually advisable to negotiate acceptable credit conditions with your lender.

Also read this: Two wheeler loan charges and expenses 

The list of costs that are involved in a two-wheeler loan are as under: - 

• Loan Processing Fee: The maximum amount of a two-wheeler loan processing fee is a maximum of 3% of the loan amount.
• Documentation Charges:  The maximum amount of the documentation charges is a maximum of 3% of the loan amount.
• Pre-Payment Charges: Within 4-6 months from the first EMI  is 10% of the principal amount. Within 7-12 months from the first EMI is 6% of the principal withstanding. 5% of the principal amount within 13-24 months following the first EMIs. Then, after 24 months from the first EMI, it is 3% of the principal amount. The prepayment for the loan is not allowed within the three months of the repayment of the EMI.
• Overdue EMI Interest: It is 2.5% per month on unpaid instalments.
• Stamp Duty: The value of the stamp duty is as actual as levied by the respective State Governments.
• Cheque Bounce or the EMI Return Charges:  The cheque bounce or the EMI return charges are about Rs. 500/-.
• Legal, Incidental and Repossession Charges: Incidental charges are the expenses or the charges that are not specified or budgeted, but the bank incurs these charges on behalf of the customer.
• Duplicate NOC:  The value of the duplicate NOC is Rs. 500/- per request.
• CIBIL Charges: These are around Rs. 50/- per request.
• PDD Charges:  The PDD Charges are up to Rs. 450/-.
• cheque /ECS Swapping charges: -  These charges are around Rs. 500/-.
• Amortisation  Schedule Charges: These charges are around Rs. 200/-.
  
  

HOW TO GET A TWO-WHEELER LOAN? Here are a few steps that will help you to get a two-wheeler loan: - 

1. Verify your creditworthiness: - When you apply for any loan, the bank you apply to run a check on your CIBIL score. This is done to verify your creditworthiness. If you have a good CIBIL score, it will mean that you have the ability to repay all your debts on time. It increases the chance of you availing of the loan. Therefore, before applying for a two-wheeler loan, you should check that you have an excellent CIBIL score. It has to be around 700.
   
   
2. Set your monthly budget: - It is the most important thing you need to take care of. Before making any purchase or taking any loan,  you should know your budget. You should apply for a loan that has an affordable EMI. You don't want that two-wheeler you buy to be a financial burden on your shoulders. Therefore, to ensure that, you should make a budget and stick to the requirements.
   
   
3. Compare the options: - There are many banks available that provide different loans with different interest rates. So, if you are planning to apply for a loan, you should compare different loans available, at least five, their interest rates, the tenure of the repayment and other benefits, and then should select the one which is the best for you.
   
   
4. Select a trustworthy lender: - As a lender or a bank checks your CIBIL score and creditworthiness for his satisfaction, in the same way, you should also check the creditworthiness of the lender. The loan providers who are well established and clear have pre-decided terms and conditions.
   
   
5. Apply online or offline: - It is your choice to apply for a two-wheeler loan online or offline. Some of the banks provide online and offline facilities, while some don't know to check accordingly. If the bank you want to apply to does not have an online option, you can visit the nearest branch of that bank and apply for the loan. If you want to apply online for an HDFC BANK TWO WHEELER LOAN, you can visit their official website.
   
   

CONCLUSION: - A two-wheeler loan can help someone who is not financially stable and wants to buy a two-wheeler. Even if you have the desired amount of money, you should still go for a two-wheeler loan, as the amount of the EMIs is not that much, and you can easily manage it with the other expenses.

Also read this: Document verification in two-wheeler loan