A two-wheeler is a genuine aspiration for many. It is a convenient and affordable mode of conveyance providing freedom of movement. Opting for a two-wheeler loan can enable you to get your dream bike without stressing your finances.
You can avail of a two-wheeler loan to acquire your vehicle of choice. It is a convenient way of owning your vehicle. Opt for the most competitive bike loan interest rates with suitable repayment terms and conditions.
Understanding the requirements for a two-wheeler loan :
A first-time applicant should know the following terms that are commonly used in the process of a two-wheeler loan application.
• Principal Amount
The amount that is taken as a loan is the Principal. The loan amount depends on the price of the two-wheeler and the amount you can put up from your pocket. With an above-par credit score, you can get maximum financing on the bike of your choice.
• Interest Rate for a bike loan
It is a percentage of the Principal amount that the borrower has to repay during the loan tenure. Lending institutions offer attractive interest rates on two-wheeler loans.
• Equated Monthly Installments:
It is the amount that the borrower has to repay per month. It includes the interest and a part of the Principal amount.
• Loan Tenure
It is the duration of the loan, within which the borrower has to repay the loan amount.
• Reimbursement capacity:
It is the capacity to reimburse the loan amount with interest. It is assessed based on current earnings and expenditures along with other loans that one is servicing. The EMI amount can be calculated with an online bike loan EMI calculator.
• Processing fees It is a one-time amount charged by some lending institutions to process a loan application.
Few tips for getting a two-wheeler loan easily:
Accurate Details to be provided– The loan procedure begins with providing the necessary details; whether it is in online or offline mode. Giving accurate information increases credibility, trust, and the possibility of getting your loan approved. 2. Eligibility Criterion
All lending institutions have set criteria that have to be met by an applicant to get the loan.
- The applicant should be a resident of India.
- One must be an adult at the time of applying for the two-wheeler loan and sixty-five at the time of maturity.
- One must be a salaried individual/self-employed with proof of a stable income as per the requirements of the lending institution.
- One must have a CIBIL score of 750 and above.
- One must provide the required documents such as PAN, voter, and Aadhar Card.
After satisfying the eligibility regulations, one can find out the exact amount that one needs to pay back using a two-wheeler loan EMI calculator.
Documents required by lenders to validate the eligibility status of the borrower are.
- A duly signed application form.
- KYC documents.
- Additional documents required for a salaried applicant are:
- Salary slip
- Bank statements.
- Income Tax returns.
The submitted documents are assessed by the lending institutions and the loan application is processed accordingly.
4. Calculate the EMI – It can be calculated by using EMI calculators online depending on the term, principal amount, and the rate of interest charged. An applicant can access this handy tool from a lending institution’s website. The applicant has to provide the variables like the loan amount, interest rate, and tenure to get the EMI amount.
Two-wheelers are a convenient and effective transport to navigate through busy Indian roads. A two-wheeler loan is a popular financial instrument that helps one acquire a bike of choice without making a dent in savings. An astute applicant should compare the offers of various lending institutions and select one that suits the requirements.