Blog #Two Wheeler Loan EMI Calculator

(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 

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 

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