Blog #ORIENTAL BANK OF COMMERCE TWO WHEELER LOAN

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: Two wheeler loan charges and expenses 

It is very important to check your eligibility criteria before making any decision. The eligibility criteria usually differs from one bank to another and one loan type to another.

Your eligibility criteria mainly differs according to:-

1. Secured loan:- If you're looking to purchase a two wheeler loan as a secured loan then you'll have to make sure to check the eligibility criteria required Like age, nationality, income and employment status.
   
   
2. Unsecured loan:- If you're looking to purchase a two wheeler loan as an unsecured loan then you'll have to check all the eligibility criteria required like income, credit card, employment status, credit history and age.
   
   

Components that are included in eligibility criteria. It is very important to check all the factors that affect the eligibility criteria. So the first thing you should do is have a clear understanding of the factors and the effect of those factors on your eligibility criteria. 

We've listed some of the basic factors below:-

1. Age:- Checking your age is the most basic factor that determines whether or not your application should be approved. This factor usually differs from one bank to another, so it's important to compare all the banks and then choose the one which has an eligibility criteria according to you. A lot of banks like Oriental Bank of Commerce two wheeler loan or Axis Bank offers loans to individuals who are of age 21 or above. But there are banks that allow you to apply for a loan even if you're 18 above. So your age plays an important role in determining your eligibility.
   
   
2. Credit Score:- It is a number between 300 to 900 that determines your creditworthiness. The higher your credit score is, the more creditworthy you are. So it's important to maintain a decent credit score in order to be eligible for a two wheeler loan. Your credit score is calculated using some factors like credit history, current credit, credit mix and the total loans you've taken. So you'll have to keep a track on all these factors and make sure that you're not overdoing it, because that will negatively affect your credit score. And a bad credit score will make it really hard for you to get a loan in future.
   
   
3. Employment Status:- This factor usually depends from bank to bank and your loan type. Generally you can get a two wheeler secured loan even if you are unemployed. But a lot of banks now check your employment status to even approve a secured loan. So it's important to be employed in order to get a loan approved. And if you're applying for an unsecured loan then it'll be important for you to be employed with an experience of 2-3 years in your profession. Banks don't give unsecured loans to individuals who are fresher.
   
   
4. Income:- Your income plays an important role in determining your loan amount. If you're someone who has a low income then you won't be able to apply for a high loan amount. It's important to check your income and your repayment capacity before making any decision regarding loan amount. There are online tools like a two wheeler loan EMI calculator that can be used to check your repayment capacity according to your income.
    

Two wheeler loan eligibility. The eligibility criteria for a two wheeler loan usually differs from one bank to another.

But we've listed some basic eligibility criteria below:

1. Minimum Age: You have to be 21 or above to be eligible for a two wheeler loan.
   
   
2. Maximum Age: 58-64 years, or you can be of a retirement age.
   
   
3. Employment status: You have to be either a salaried or a self employed individual.
    
4. Work experience: You should have a minimum of 1 years of experience in your profession.
   
   
5. Income:- The minimum income required is INR 10,000.
    

Conclusion:- 

There are a lot of banks and NBFCs that provide the facility of two wheeler loan, the eligibility criteria for each bank is different. So it's important to choose a bank where you fit into the eligibility criteria perfectly. 

Also read this: Things To Follow Not To Become Defaulter of Two Wheeler Loan 

Along with the increasing trend and passing by year after year and approaching the 90s, there was more manufacturing of the two-wheelers given the growing demand for the two-wheelers among the different kinds of people of society. 

The increasing demand for the prices of the two-wheeler started coming down to a b to which the lower under people were also now got attracted and ways to have two-wheeler other to purchase at a time or to avail new loan service which started in the form of two-wheeler loan.

1st process arrangement

First of all, there is a matter of choice about the type of two-wheeler an applicant needs. Vitiate related to the color or the mileage of the two-wheeler. How much oil consumption happens, the life expectancy of a two-wheeler, and the residential value, if it is sold after a certain number of years, can get a resale value. A primary requirement that customers find in a two-wheeler is how many CC the two-wheeler is. It will be a sport good looking fancy e and competitive bike or a bike with simple requirements and basic needs. A better decision will give a better service for which it needs to be done before time in hand.

2nd process arrangement

Lender Selection-the selection of the loan provider of the lender is very much important because there is immense competition between the loan provider regarding the two-wheeler in the market. There are leading  banks in the market who are among the top leading charts to which they also offer varieties of schemes and services with value-added and gifts in case of additional services which will allow customers to get. We'll get attached to the existing loan provider as the companies don't want to lose the customers. Before availing of the two-wheeler loan, there is always a requirement of a proper comparison among all the loan providers, which are preferable in regards to the rate of interest, loan tenure, age limit, eligibility criteria and other related things.

3rd process arrangement

The next turn comes off what the evaluation of the credit score. Credit score plays a vital role as it is primarily third party credit bureaus. It will consider all the past lives provided and the way and pattern of ligaments how it is done along with the current loan already applied for also. If the previous and current record of the loan is quite good, the loan procedure approval will mostly favor your wishes. For example, Oriental Bank of commerce two wheeler loan are very much sophisticated regarding the credit score evaluation. To have an excellent affordable loan from the loan providers, there is a need to perform some actions to rebuke the credit score. If there is any discrepancy already can make changes before time in hand so that we can avail for it two-wheeler loan easily.

4th process arrangement 

The other thing that is quite impressive to know is understanding the process from where the loan provider is providing the loan. In most cases, it has been found that some paper or documents are missing at the very last moment. Generally, lenders provide a transparent and straightforward loan process. 

Conclusion

After all the things getting selected, one can apply for the loan in an online way, but one thing should be to make sure that the documents related and required must be handy within time in hand. Which of the paper related to the two-wheeler should we arrange and ready before time in writing so that the other essential things can be checked like that of the eligibilities that might get altered with the information that was earlier inform. A proper plastic will make ensure that everything is ok.

Also Read This- Can An Individual Obtain A Two-Wheeler Loan With A Poor Credit Profile?