All of us have at least once been in a fix with the Uber rickshaws, sometimes they just don’t prefer going to certain places, other times you feel that it is extremely uneconomical. Routine buses are too inconvenient, especially if you want to make a sudden trip to the shores or even visit a local eatery in the middle of the night. Own your mode of transportation, the most cost-effective option is a two-wheeler. Don’t have enough savings for a bike of your own? Two-wheeler loan provision has your back. It helps you purchase a motorcycle or a scooter in accordance with your taste and pay back in equated monthly instalments (EMI).
EMI is the most affordable approach to pay off your loans. The interest rates on these loans roughly range anything between 9.55% to 26.00% per annum. There is also a nominal processing fee charged by the banks which ranges between 1% to 3%. Usually, the loan amount can be from Rs.25,000 onwards, up to Rs.10 Lakhs.
Most of the two-wheeler loans are unsecured. Therefore, the lending institutions or banks are extra cautious when it comes to approval of the loan as they do not have a collateral to fall back upon. They assess the applicant’s profile extensively before extending the loan scheme. The eligibility criteria differ at different banks. The general set is as follows:
- Age Factor: You must be between 21 to 65 years of age. Some banks have a minimum age as low as 16 for mopeds and electric scooters.
- Credit Score: If you want the loan on a lower interest rate your credit score must be at least 750. If your credit score is below 750, you’re still eligible but would have to pay a higher interest rate.
- Your minimum annual salary must be at least INR 75K.
- You must be employed, whether it is salaried or self-employed.
You must have a proper set of documentation to prove that you are eligible for the loan scheme you have applied for and to back up the information you have provided. Similar to the eligibility criteria, different banks would have different documentation processes, but the most basic ones are as follows:
- Self-attested application form with an attached photo identity (passport size photograph)
- Proof of Identity: Pan Card/ Passport/ Voter ID/ Driving Licence/ Aadhar Card.
- Residential Proof: Aadhar Card/ Ration Card/ Voter ID/ Driving Licence/ Passport/ Electricity or Water Bills.
- Income Proof: Latest Income Tax Return Certificate, Salary Slips, Form 16, Audited Financial Sheet, Qualification Certificate, Certificate of Practice, Shop Act Licence, Sales Tax Certificate, etc.
THE PROCESS TO AVAIL FOR A TWO-WHEELER LOAN:
There are largely two methods two apply for a two-wheeler loan: Online and Offline. Though the steps for applying for the loan somewhat remain the same, which are:
- Research about the interest rates, processing fee and tenure of different lending institutions and banks and use a two-wheeler loan EMI calculator to assess cost-effectiveness and feasibility as per your monthly income.
An EMI Calculator for the bike loan is a necessity. The EMI is mainly dependent on the loan principal amount, the interest rate, and the tenure you choose. The processing fee and prepayment pattern would also affect your EMI. Compare the various EMI payments on different loan schemes and then select the one most cost-effective. You must then scan through the documents that the lender requires and the complexity of the documentation process.
- Check the eligibility criteria and ensure that you meet all the terms and conditions of the bank.
- There is an ocean to choose from. You must choose the bank or lender that best suits you. Remember that you should also consider factors such as the urgency of the loan.
- Ensure that you have all the right documents to complete the documentation process.
- Get your dream two-wheeler.
A two-wheeler loan can benefit you in getting onto your dream wheels which would in turn help you save time in commuting from one place to another and be much more efficient. Go get yours now!