Two-wheelers are convenient in traffic congestions and provide ease of parking compared with other vehicles, making more customers buy a two-wheeler. In this world of digitisation, customers can secure an online two-wheeler loan with minimum documentation. Gone are the days of searching for ‘two-wheeler loan near me’ and standing in long queues with a file of documents.
How to Apply for the Right Two-wheeler Loan
Customers hitting that ‘two-wheeler loan instant apply’ option should consider the following aspects to choose the right one:
1. Easy Loan Eligibility Parameters
Two-wheeler buyers should apply for a loan offered against easy-to-meet eligibility criteria. The better your eligibility for a two-wheeler loan, the lower the offered interest rate. The scooter or bike loan eligibility criteria of reputable lenders are as follows:
- The age limit should be between 18 years (at the time of making the application) and 65 years (at the end of the loan tenure).
- The annual income to meet scooter or bike loan eligibility should be Rs.96,000 for salaried individuals and Rs.1,20,000 for businesses.
2. Flexible Repayment Tenure
Renowned lending institutions offer flexible two-wheeler loans in terms of tenure. Customers can choose the tenure between 12-48 months. Use the two-wheeler loan calculator and consider the estimated loan EMI to choose the tenure. The loan tenure is one of the factors considered that impacts the EMI. Therefore, borrowers must be mindful while selecting the loan duration. You can apply for a long-term loan to reduce the EMI, but it will increase the overall interest.
3. Affordable Interest Rates
Customers can approach lending institutions offering as low as 0.99% interest rates on two-wheeler loans. Depending on the loan applicant’s credit score, employment, income and age, the interest rates may vary with different lenders. Also, there can be different two-wheeler plans for two-wheeler finance, i.e., based on income proof, asset or without income proof, associated with different lending rates.
4. Consider the Loan Amount
Apply for a two-wheeler loan offering up to 100% finance (on-road value). You can apply for a loan depending on your financial needs to buy your desired bike or scooter. However, it should be an amount that the borrower can repay without financial burden during the loan tenure. An unnecessarily high loan amount may lead to delayed EMIs or default. Choose the right loan considering the expected cash flow every month. Lenders consider your bike loan eligibility to sanction your desired loan amount.
5. Zero Down Payment
Generally, buyers who want to secure a two-wheeler loan need to make a forefront payment as a down payment. You can apply for a two-wheeler loan with a lender offering a zero-to-low down payment option to their customers. On the other hand, if you can manage funds, you can pay a certain amount towards the down payment as it will help to reduce the loan amount and ultimately, reduce interest rates.
6. Simple Documentation
Search for lending institutions offering a two-wheeler loan with minimal documentation. Typically, you will be asked for the following documents:
- ID proof (Passport/voter’s ID/Aadhaar card/driving license/PAN card)
- Resident proof (Passport/Aadhaar/voter’s ID/driving license/ration card/telephone bill/electricity bill/gas connection bills/LIC policy.
- Income proof (ITR/form 16/salary slip/bank statement)
- Asset proof (Tax receipt of land/building/house)
Thus, considering these crucial aspects, borrowers can make an informed decision to apply for a two-wheeler loan.