Blog #two-wheeler loan

There and always an important question that arises in the mind of the loan borrower or the applicant. The question is how a credit score influences the procedure of the two-wheeler loan and vice versa.

First of all, to know the same concept, one will have to go through the proper meaning of the credit score. A credit score is nothing but a three-digit number generally prepared and issued by credit rating agencies or bureaus. Through the credit score information, a loan provider gets the exact and accurate information about all the types of loans availed in the past by an individual. It is preferred by most of the banks, and nbfc is that if a person has a positive credit score, that is a high rate of credit. If a person has nearly 700 for 800,, he will be given the full fever to receive loan approval for the two-wheeler. 

A credit score is an important thing based on which the rating calculation depends. The first and foremost thing which comprises the top part of the credit score is the payment history. It generally covers all the style or the pattern based on which it availed all the types of loans, how it has been paid or has been handed will be checked to provide the approval for the loan. The most important thing is the current debt, or any credit loan service is already going on now. Then the next turn comes for the length of the tenure period, which means for how much period or months or year the loan was granted. Then the two other components, that is, the new credit and the credit mix, contribute about 10%and 10% respectively.

Bad payment behaviour

• An important factor that influences the credit score while availing two-wheeler loans is the bad payment behaviour during the loan repayment. From the different kinds of service, it has been noticed that a 30 days delay in the repayment period reduces about 100 points in the credit score, which will be very tough to regain by following the proper repayment rules of a new loan. Bank of Baroda two wheeler loan offers better facilities to the customers. Most of the time, it has been noticed that people use multiple credit cards at a time. It does forget to manage it properly as they do not have an intention of paying it properly with proper reminder alerts, and this is the reason due to which they miss the due dates of the payment and take a hit as it adds two different types of penalties or charges along with the exponential rate of interest.

The tenure of the loan

• The loan's tenure period plays a vital role in influencing the credit score in a two-wheeler loan. For example, suppose the two-wheeler loan is an event for the return of 5 years or more. In that case, there will be a maximum number of which will include interest as well as repayment principal, but in this case, the rate of interest which will be charged which means the value of the interest amount total collected will be much more than that of a two-wheeler loan availed for three years. This will eventually increase the cost of the borrowing of the two-wheeler loan. At the same time, on the other side, there is cutthroat competition in the market where some of the financial institutions will offer the same tenure period at a low rate of interest to attract the customer who is involved with the other financial institution.

Conclusion

High credit utilisation ratio, outstanding debt, and payment of the minimum amount also play a vital role in influencing the credit score while travelling for the two-wheeler loan. the income source capacity of the loan applicant also checked as besides the the two-wheeler itself, the income is the source with which the loan repayment EMI is will be paid each month

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 

The first and the formal thing that needs to be kept in mind regarding the two-wheeler loan is maximizing the loan amount. 

• Most of the time, people get afraid of availing or maximizing the loan amount, but if you take some steps properly, it will help. Purchasing a bike by availing a two-wheeler loan with the purchase of about 80%  on-road price of the two-wheeler can make one initiate flexibility to manage other financial requirements.
  
  
• From the side of the government, there are certain reforms and policies that have been implemented to provide benefits for the customers who are facing difficulty during the time of the pandemic regarding their repayment of the loans as most of the jobs have already been lost due to the outbreak of the Covid 19 and the financial conditions of the people are not good. There has been a moratorium period, including tenure of 4 years, having 12 months of interest payment and 36 months of repayment of the original principal. Still, due to the inability to pay at the proper time, extensions have been added that have increased the tenure of 36 months to that of 48 months.
  
  

• One of the most important things to be kept in mind is not avoiding too many credit options for a two-wheeler loan that is over-borrowing should not be there. If a loan is available, then it does not mean that you will have to take the loan only without checking the other types of facilities provided by the different types of loan providers of a two-wheeler loan. There is nothing positive, but only negative things are related if the matter of over-borrowing arises. The first and foremost thing which is very much bad in over borrowing is that it will not allow a person to understand that when it is happening and after a long period when it will affect your financial stability to a much extent will be understandable and will act accordingly. It might happen that without proper calculation of the EMI, there might be the possibility of cutting around the expenses from the other types of requirements and meeting up for paying the loan amount. SBI two wheeler loan have the concept of providing reminder alert to help the customers. The worst that can happen will be that it will leave you in such a situation that after meeting up most of the requirements, you will be left with nothing and does it you wish you will be unable to pay for skip the EMIs and thus hampering the credit score which is very much worse for the other loans which you will be availed in the future.
  
  

• When availing of the loan, all the details must be carefully listened to and watched and understood to execute properly as per your feasibility. The different types of hidden charges and the processing fees, if you are not noticed properly, can make it difficult to manage the other types of expenses as there might be fluctuation in the payments, which will affect the stability of the budget and thus hamper everything.
  
  

Conclusion

Due to this reason, there is always guidelines are being given by the financial institutions that proper planning and discussion should be there for the proper execution of the loan like that of some backup arrangement if some part of payments is not given at a certain point of time or the facility of loan restructuring is there or not in case of any on certain change in the job profile or the income source of the customer. To conclude, we can say that proper management of a loan will never put you down during the most crucial time.

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

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 

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 

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 

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 

If anybody thinks that he will be getting the total chance of having the independence to ride, then this is the right time one can go through to avail a two-wheeler loan. One can quickly get a two-wheeler loan up to a rate of 100% finance, but we'll have to do some sorts of research and logical comparison among the competitors in the market. 

One will not have to go here and there, which is to be done previously and used to wait for a long period to get a response from a bank employee or an official who will be giving all the details by spoken words.

Nowadays, in the online format, loans are available and can be applied. Therefore, it takes much less time to get the information from the official website of the banks and financial institutions that will be providing the loan. However, there are still some banks in which if loans are applied online and the proper checking of the eligibility criteria, there will be within 5 to 10 minutes of applying for the loan. The loan amount will be disbursed in the bank account of the loan amount of the customer.

Selection of a two-wheeler loan

• The fall in availing of a two-wheeler loan for a two-wheeler includes the first and foremost is the decision of the brand type of the two-wheeler Start the purpose should be selected first. In some cases, people like to get beyond something normal of some better quality of the bike, and if such things are in mind, then there are few banks also available who can fulfil the requirement in the form of an excellent loan deal for a two-wheeler.
• There is no need to get worried to stand in the queues of the bank to know the details as the officials will be sent to your house to complete the documentation process and will save time as well as will end up saving about 14 to 15000 rupees due to this structure of banking.
• Bank account holders of the bank are given extra privilege due to which the rate of interest is too low can go to the extent of 2%, which is very much lower than all types of loans.
• There will be flexibility in the repayment period in most of the banks where the loan tenure extends and where it is between 12 months to 60 months which is quite enough for ordinary people to get adjusted with this period.

Examining the eligibility of the loan

Loan eligibility calculators are available in the sites where one can check the loan eligibility within a period of 1-2minutes maximum. In these kinds of services, one can check the minimum income required, the person's age limit, and many other related things. Bank of Baroda Two-wheeler Loan offers good to customers. An existing customer is the non-existing customer of a bank are now allowed with an extra benefit of that one can have the chance to get a loan amount which will be equal to 5 to 6 times of the total gross annual income of an individual.

Calculating the two-wheeler loan EMI

After checking the eligibility criteria of the two-wheeler loan, one will have to move towards the EMI method. There are various eligibility calculators present in all the official websites of The Financial institutions and can be easily used to know the EMI so that everything can be prepared and managed by the information gathering when known before time in hand and things can be done accordingly.

Applying through the online way

As most things are also available in the online mode, it will be preferable to apply or proceed with any step off alone online, whichever is available in the online platform. Using a two-wheeler loan to the online platform will be a fast response and a much more secure and safer method of purchasing or two-wheeler loan. There is less involvement of middlemen, human error physical documents ok related to it is negligible in this type of loan application form.

Conclusion

The documents required to get the Two-wheeler Loan should be available before time in hand to avoid any kind of last-minute emergencies. The public documents required to avail of a two-wheeler loan are the loan application form, proforma invoice, passport size photograph of each applicant, and the KYC records, which will include income proof, age proof, bank statement and business or office proof.

Also read this: Cibil score and 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?

What is a two-wheeler loan?

A two-wheeler loan is a loan taken from the bank to buy a two-wheeler. 

There are mainly two types of two-wheeler loan -

Secured : 

As the name suggests, here, the bank will take some asset or your two-wheeler as a security or collateral against your loan. So if you're unable to pay the loan amount, the bank will seize your two-wheeler and sell it to recover the loan amount.

Unsecured :

These types of loans are not secured, so you don't have to give any asset as collateral. But instead, you'll have to maintain a good credit score to be eligible for this loan. Banks provide an unsecured loan based on credit scores. So if your credit score is bad, banks (like Bank of Baroda Two Wheeler Loan) will reject it or ask for a high-interest rate.

The process to apply for a two-wheeler loan -

There are several steps that you'll have to follow to get your loan approved by the bank:-

1. Application :
   The first step is to fill the form given by the bank. You can even find the paper online on the bank's website. You'll have to go to the personal loan page and click on the 'Apply Now button. And once you do that, you'll be redirected to the application page. So fill in all the necessary details.
   
   
2. Documentation :
   The second step is to attach all the documents required by the bank. They usually ask for three types of proofs:- Identity proof:- So for this, you'll have to submit documents like an aadhar card, pan card, driving licence and passport. Because these documents will verify that you're a citizen of India.
   
   Address proof - For this, you'll have to submit documents like telephone bills, electricity bills and other utility bills.
   
   Income proof -
   Banks only give two-wheeler loans to someone who is employed. So you'll have to provide your income proof to show that you are employed. The documents that you'll have to submit are; bank statement, payslip, form 16, ITR, Tax Challan or any other document that shows your monthly income.
   
   
3. Verification :
   After you've attached all the necessary KYC documents. You'll have to submit the form to the bank. You'll also get the option to choose the interest rate, loan tenure and loan amount at this stage. So plan your budget accordingly and choose the best option for you.
   
   
4. Disbursal :
   Once the bank has verified your documents, you'll be declared as an eligible applicant for a Two-Wheeler Loan. And the loan amount will be credited to the dealer's bank account. Some banks give DD (Demand Draft) or cheque to the dealer. And if you've selected the secured loan option, the amount will be credited to your bank account.

Tips -

We've listed some tips below to get a two-wheeler loan at a low-interest rate :

• Compare banks and choose the one you think will give the lowest interest rate.
  
  
• Negotiate with the bank. And check if you can lower your interest rate. If you have a good credit score, that will help you lower your interest rate.
  
  
• Don't apply if you have multiple loans at the same time. Because if you're unable to pay one monthly instalment of either of them, you’ll have to pay extra charges, and it will also affect your credit score. So be sure that you get rid of all the previous debts or loans you've taken.
  
  
• Choose a bank that gives you flexible repayment options. And some banks give you the flexibility to plan the repayment structure of your loan amount.
  
  
• Choose short-term loan tenure because you might end up paying more than your loan amount if you opt for a long term.

Conclusion -

Look at a lot of options before deciding on one. Think, compare and then choose the one that fits according to your needs. You can even take help from loan consultants, and they'll compare all the banks in the market for you and choose the one according to your need.

Also Read:- Two Wheeler Loan Eligibility 

Loans help people in adverse conditions. People take loans when there are problems, emergencies to fulfil the desires they couldn't have achieved before due to some issues and many more reasons. A two-wheeler loan is an excellent help for the people. Some of the reasons to avail of two-wheeler loans are listed below:-

1. Safe and affordable- Two-wheeler loans are very safe and affordable for everyone as the tenure period is quite long, can be extended upto 60 months, which is a sufficient time to repay the amount taken. Banks follow proper guidelines provided by the government, so the process is very safe. Some banks offer the loan in some minutes of applying if your credit score is high.
   
   
2. Reach for your dream- Everyone aspires to buy a two-wheeler of their own. You can achieve this dream if you take a two-wheeler loan to buy a two-wheeler. Two-wheeler loan provide affordable interest rates, flexible EMIs. In the festive season, you get many offers as well. Many banks tend to collaborate with the brands for promotional purposes. In that time you will get pretty good discounts which will be helpful for you to save money.
   
   
3. Keep cash for emergency purposes- You can save your money for emergency purposes if you take a two-wheeler loan for buying a two-wheeler. Paying a massive amount of cash overnight may affect your financial stability. The repayment of the loan is pretty straightforward. You need a minimal amount of money monthly for the given tenure period. The instalments are pocket friendly.
   
   
4. Use the money to invest- The funds you have can be used in investments rather than paying for a two-wheeler. Assets are vital. It will give you a hassle-free future after you retire from your job. Don't use the real money for paying for a two-wheeler. It is a better choice to take a loan.
   
   
5. Inculcate financial discipline- After taking a loan, you know that you have to pay a certain amount of money monthly for a more extended period. You will have a sense of responsibility and discipline to save your money. It helps you to plan your expenses properly. You will learn to plan things well.
   
   
6. Tax and depreciation benefits- You can claim the benefits of the taxes if you are a self-employed business person. Two-wheeler insurance, fuel and maintenance cost, the interest of the loans are allowed to deduct from the profits.
   
   
7. Build a credit profile- Your financial behavior is tracked when you take a loan. There is an effect on the credit score. A credit score is a score that shows the worthiness of taking a loan. With repaying money in the time, you boost your credit score. Higher credit scores help you to get loans quickly. You will get discounts on the interest rates as well if you have a good track record.

Two-wheeler loan at canara bank  is one of the demanding loans for an extended period. These provide interest rates starting from 9.00% p.a. These provide many offers and discounts. People of age 21 can apply for a two-wheeler loan. People with employment and unemployment can apply for a loan. Unemployed people need to have a guarantor who will ensure the repayment of the money timely else, and the bank will ask for the funds from the concerned guarantor. The processing fee is also significantly less. It is 0.25% of the loan amount. The max tenure period is upto three years which is a very long period—the lowest amount for the Rs. 10,000 loan is R.319. There are no prepayment charges as well. The features are pretty attractive as a customer.

Conclusion: There are many advantages of a two-wheeler loan. The loan gives you flexibility in managing your finances.

Must Read:- Two-wheeler Loan Process And Its Implementation