Two-wheelers can be a convenient and economical mode of transportation, especially in countries with heavy traffic and crowded urban areas. They make it easier for us to get around the congested town daily. But when saving for a two-wheeler, we often compromise to cut costs and save more money.
However, there is no need to make any concessions for something so important to our daily lives anymore. Without enormously increasing the strain on your budget, two-wheeler loans can help you easily obtain the vehicle of your dreams.
In this article, we’ll discuss all you need to know about two-wheeler loans before you apply for one.
Understanding the Significance of Two-Wheeler Loans
Listed below are some key points that highlight the significance of two-wheeler loans:
Easy and Quick Approval
The application process requires very little paperwork, which accelerates the loan disbursal. The verification process becomes more straightforward, enabling you to receive the borrowed amount quickly. Some of the documents that you must provide for your verification are listed below:
- ID Proof: Driving license, voter ID, PAN card, or Aadhar Card
- Address Proof: Aadhar Card, driving license, voter ID, PAN card
- Asset Proof: receipt of house tax, land, or building papers
- Passport size photograph
- Income Proof: tax returns, a properly completed Form 16, or a salary credit on a bank statement
Great Interest Rates
Two-wheeler loans are available from financial institutions at attractive interest rates. By paying less interest rates and recovering the principal sooner, you can reduce your monthly repayment value and increase your savings. The combination of all these appealing features of two-wheeler financing can make your purchasing process simple and convenient.
You can pay for up to 100% of the cost of your ideal two-wheeler with a two-wheeler loan. This allows you to avoid paying all at once and buy your brand-new two-wheeler with a small down payment.
Flexible Repayment Options
Most banks provide adjustable repayment schedules for two-wheeler loans. The tenure changes from bank to bank, so discuss this with your agent to pick the suitable tenure for yourself.
Remember that short tenure increases monthly EMI but lowers interest, while longer tenure leads to higher monthly payments. You can utilise a free online two-wheeler loan interest rate calculator to find your most suitable tenure.
How to Get the Best 2-Wheeler Loan Interest Rate?
Your goal when applying for a loan must be to secure one with the cheapest rate of interest possible.
Follow the tips listed below to get the best 2 wheeler loan interest rates:
Improve Your Credit Score
Consider improving your credit history first, as your credit score is a major factor in the interest rate that is offered to you. Before applying, consider ways to raise your credit score if it is low.
Keep Your Debt-to-Income Ratio in Check
Enhance your present debt situation by keeping a close watch on your debt-to-income ratio. This demonstrates the percentage of your present earnings that is used to pay off mortgages and credit card debt.
Don’t hesitate to Negotiate
Remember that you miss 100% of the chances you don’t take, so don’t be afraid to negotiate with the lender. Negotiation often helps applicants get the best deal if they don’t meet all of the eligibility requirements. Many lenders offer favourable interest rates on two-wheeler loans if the applicant has a good credit history.
Opt for Your Current Lender (If Any)
Try getting your two-wheeler loan from the bank where you have a savings account. Since you already have a positive relationship with the lender, this will increase your chance of getting the best deal.
Two-Wheeler Loan Application Process: Explained
Like most other loans, applying for a two-wheeler loan is a pretty simple process. Follow the steps given below to ensure a smooth loan approval process:
Compare Multiple Lenders
To get the best deal, compare multiple lenders and the interest rates they offer. Also, make sure to check what other benefits they provide. Use an interest rate calculator online to make well-informed decisions in this step.
Gather All The Required Documents
Keep all the previously-mentioned documents needed for application in handy, as it will speed up the process.
Fill Out the Application Form Online
Head to the official website of your lender and look for the two-wheeler loan section. You will find an application form where you will need to enter some of your personal and financial details.
Submit the form once you are done, and within a few days, the verification process will begin. Once that’s done, you will get approval for the two-wheeler loan.
You can visit your lender offline or even opt for online two wheeler loan approvals from the comfort of your home by following the steps mentioned above.
Interest Rates of 2-Wheelers from Top Banks
The interest rates for two-wheelers vary from one lender to the other. The variability in rates of interest is influenced by elements like the borrower’s creditworthiness, the loan’s tenure, and the state of the market.
Here’s a list of 2-wheeler loan interest rates offered by some of the well-known banks:
|10.80% – 28.30%
|Punjab National Bank
|8.65% – 10.00%
|Bank of India
|6.85% – 8.55%
Applying for a two-wheeler loan is now a hassle-free process, which makes it easy for individuals to own their dream vehicles. Conduct thorough research before making decisions and consult a professional for major steps if you’re new to this process to ensure a smooth and informed journey.