What is a two-wheeler loan, and how is it useful?

If you think about it, two-wheelers are considered as the best companion for the middle-class families in India. Almost everywhere, you can see bikes or scooters on the roads in India. They are not only considered a tool for commuting, but people also use them for long-distance travel, racing and leisure cruising or even for off-road riding. Although, not everyone can afford to buy a bike outright in cash. This is where the loan for two-wheelers plays its parts. These kinds of loans are particularly designed to ensure that the customers can buy their dream scooter Or bike.

A two-wheeler loan is provided to people who want to own a bike or a scooter with lucrative payment options. And lenders can be paid back through EMIs.

You might have heard people say taking a car loan is better than a two-wheeler loan. Well, surely everyone is entitled to give their opinion even though it's the wrong one. Two-wheelers are the most preferred choice in India because-

● They are easier to manage in traffic

● They tend to cause less pollution

● It is pretty easy to get a bike loan without any down payment.

What are the features of a two-wheeler loan?

The banks finance up to 90 to 95% at the cost of the two-wheeler, and then you can arrange the remaining amount to make the down payment. Banks charge an interest rate from 9.5 to 17% per year. You can repay the loan of the two-wheeler within just five years. You can charge the processing charges, and before you avail of the two-wheeler loan, you must check the same. It ranges from 0.25% to 5% of the loan amount. Bank will give specify the minimum and the maximum limit of the fees. If you are already a bank customer, you can get a pre-approved two-wheeler loan. If the bank has EMI schemes for easy repayment, you can avail of the same.

Applicant's Dilemma- Two Wheeler Loan!

In India, most of the people choose to avail of a two-wheeler loan even if they have enough cash to buy them outright. Still, they do so because a two wheeler loan provides the option of paying back the amounts of the EMIs. Remember, these EMIs are large enough to repay the loan on time but, of course, not large enough that might put major financial dents on your funds. All of these make two-wheeler loans one of the banks' best products.

So, other than that, here are some of the benefits regarding two wheeler loan discussed below.

Fast approval

Gone are those days when you had to wait months after months to get your loan approved. Now you can apply for a loan, and getting it approved is easier than you think, sometimes within a few hours. If you want, then you can also apply for the two-wheeler loan online as well. In fact, the online procedure is one of the convenient ways to apply for a loan.

less financial pressure

It is true that with a loan comes countless headaches. That is why people tend to avoid it. So, if you have enough funds for your two-wheeler and don't need a loan still, the banks might insist you to consider this. With the help of the loan, you will be paying a small amount of instalment every month. Therefore, you need to have extra bucks in your account for unexpected expenses.

Flexible Repaying

To be honest, nowadays, a two-wheeler loan is flexible enough for you to think. A repayment schedule means that if you are taking money from the bank, you need to pay it back to the bank in monthly instalments. Some of the banks will give you 12-48 months. But will definitely reduce the monthly EMI.

Low-income eligibility

You don't need a high insurance level for a two-wheeler. It is also not important to be in the taxable income range.

Additional benefits

With the help of a Two wheeler loan, you can get insurance and accidental cover. But probably now is the time to improve. In order to get a high loan amount, you must quote the two-wheeler's on-road price.

To wrap it up. A two-wheeler loan is hassle-free. So if you want to apply for it, consult with your bank to know more about it.

Eligibility of taking two-wheeler loan

The banks or financial institutions ask for the candidate to be 21years of age to apply for the two-wheeler loan. You can even repay the loan before 60 years. Some banks even allow them to repay the loan before 65 years, which are self-employed. So, it would be best if you had a good CIBIL score that ranges up to 700 to 750, and you could apply for the loan. The bank will pay and specify the income range from 72,000 to 1.5 lakh per year, and it even crosses to the banks and financial institutions.

What documents do you need for the loan?

The financial institutions will ask for certain documents where you can process the loan application. First, establishing a self-attested copy of the identity proof and proof of address is necessary. Also, keep the salary slips and even the bank statements for at least three months. Next, the bank will ask for a copy of the ITR, which will have a passport-sized photograph, and then you can remember to fill out the application form. 

Banks can even ask for additional documents if you are self-employed. Then, submit the balance sheet and the profit and loss statement in the business. Also, you can submit the income tax return for the last two years. Then, the bank will check the stability of the business so that they can sanction the loan and the loan owner can repay the loan on time.