Features of Vehicle Loan

Take advantage of exclusive rewards and deals

Most banks have agreements with bike dealers and showrooms that provide extra benefits such as free insurance, no registration costs, discounts on the next purchase, and cashbacks with the loan. Furthermore, some banks have lined up various appealing incentives with two-wheeler loans throughout the holiday season, including anything from cheaper interest rates to presents.

Rapid procedure

Isn't it challenging to wait after you've decided on a vehicle? Inquire with your investor about the Turn-Around-Time for loan distribution. After you submit all of the required documentation, the loan should be approved within ten days. Most lenders will pay the two-wheeler vendor immediately on your behalf. This also helps to save time.Finally, be sure that you just use the car for the assessment.

Rates of Interest incurred

Due to the popularity of two-wheelers, banks provide cheap financing rates to make large purchases more affordable. In any event, the rate of interest varies according to your income level of wages, the cost of a two-wheeler and market variations. Furthermore, as the supply of two-wheelers progresses, the typical interest rate offered by banks has decreased over time.

Make a re-payment plan

Debt obligations have to be completed over time, so make a wise repayment plan as per your suitability. Several flexible EMIs and other repayment arrangements are made available to the borrower to ease the debt burden. One should use a Two-wheeler Loan EMI calculator to estimate an EMI amount that has to be paid over the loan term. To determine tenure, interest rates and the total loan amount is used to stipulate the loan amount. One should wisely choose the amount as it shouldn’t be putting financial strain over the borrower’s shoulder.

 
A CIBIL Score is important in Loan Approval

Your credit report, which contains information about your previous borrowings and repayments, is issued a CIBIL or credit score on a range of 300 to 900 based on the credit report. A bad  CIBIL score or poor credit history might depict you as an untrustworthy receiver, and vice versa in front of the lender. A CIBIL Score of 700 or above is generally requested, and a poor credit profile can lead to the rejection of a loan. This score is assessed by every banks, NBFCs and lender while sanctioning any loan. A good profile is very vital in loan approval and quick disbursal of two-wheeler loan.

 
Don't take out too many loans

However, do not over-borrow merely because a loan is available. Calculate the EMI you'll have to pay each month. Overborrowing may raise your monthly EMIs and may jeopardise your entire finances and budget. This may limit your ability to obtain future credit. As credit inquiries appear on one’s credit report, it can lead to a bad impression. This can also be a potential reason for loan rejection.

 
A surplus loan amount

The loan amount is sanctioned as per the on-road value of the vehicle upto 85 to 90% of the money required to shop or purchase for your ideal two-wheeler. This gives you the freedom to manage your other financial obligations with ease. This loan amount also depends on the dealer’s credibility as well. It is always preferable to obtain a more considerable loan amount in order to meet all associated fees. To make this possible, you could consider supplying the two-on-street wheeler's cost estimate rather than the showroom pricing. If you are on a tight budget, high coverage in bicycle loans will enable you to get a two-wheeler quickly.

Thus, an HDFC Bank Two-wheeler loan is advantageous for obtaining a two-wheeler loan sanctioned within two to three working days. This has a basic KYC document that is required as verification to analyse the background of the applicant. The Income Proof required is vital for this process for loan approval as the repayment has to be done timely, and banks ensure the borrower’s repayment capability before sanctioning this loan.

Also read this: The Role of LTV in GL Approval Process