Travelling via public transportation may be exhausting and frustrating, particularly when relocating to a new location. Getting a two-wheeler is the greatest way to cope with this problem. It might be challenging to acquire a bike with the rising cost of vehicles. We recognise your requirements and have devised a bike financing solution to meet them. A bike loan functions in the same manner as any other loan. You choose a bike, inspect your eligibility, apply for a loan, check your 2 wheeler loan interest rate, calculate your EMI using an EMI calculator, and submit the necessary documents.
With so many lenders available nowadays, you have the advantage of selecting the one that offers you a bike loan at the lowest interest rate.
Why Should I Take a Bike Loan?
There are several reasons why you should choose a bike loan. The first and foremost is that you don’t have to use your savings to purchase a bike. You may borrow up to 100% of your bike’s on-road price without committing anything as security. If you can’t find any other option to finance your two-wheeler, it will be one of the best approaches. You may arrange your repayments based on your needs with low-interest rates and longer loan terms.
In addition, there is a minimum eligibility standard for obtaining a two-wheeler loan. To receive a loan, you just need to prove to your creditor that you have a steady income and a decent credit score. Remember that a better credit score may help you get a reduced interest rate.
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What Are the Features of a Two-Wheeler Loan?
Now that you know how beneficial a two-wheeler loan can be let’s discuss its features now.
- You get a loan amount ranging from ₹10,000 to ₹1,00,000.
- A loan-to-value ratio of up to 95%
- Low and appealing interest rates
- A two-wheeler loan provides you with an adjustable repayment term that can last up to 48 months.
- This loan is available for salaried, self-employed, and other professionals.
How Do I Know About My Bike Loan Interest Rate?
The interest rates on bike loans differ from one lender to the next. There are various factors responsible for these changing interest rates. All those factors are listed below.
- Monthly Income: Your monthly income motivates the lenders to make loans available to you at cheaper interest rates. Simply put, the higher your income, the better it reflects your repayment ability. Also, if you work for a reputable firm, this might give you an advantage in lowering your interest rates.
- Credit History: People with a strong credit history generally receive loans at lower interest rates. Your credit history is a record of your previous loan payback history; if you are a responsible borrower who repays all of their debts on time, you will have a credit score high enough to qualify for a lower interest rate.
- Loan Amount: The rate of interest of your loan is proportional to your loan amount. When it comes to collateral-based loans, interest rates are usually lower.
- Loan Term: Loans with shorter terms will have more affordable interest rates. The longer the term, the greater the interest rate and the total amount of interest paid.
- Category of Vehicle: The interest rates on a 2-wheeler loan are also determined by the category of your vehicle. Let’s take an example of a car loan. The interest rate for a car loan and a bike loan will differ because of the nature of the vehicle. Your 2 wheeler loan interest rate will be decided by the financier based on the value of the vehicle.
- Tier of the city: Your city tier might also affect the interest rate on two-wheeler loans. To establish the interest rate at which the loan may be issued, lenders assess the credit history and the risk involved in the transaction from the city.
- Relationship between lender and borrower: A highly credible relationship with the lender as a consequence of a consistent payment history may benefit your two-wheeler loan interest rate.
What Are the Eligibility Measures for a 2-Wheeler Loan?
The eligibility criteria for a 2-wheeler loan are as follows:
- You must be an Indian resident.
- You must be over 18 to apply for this loan.
- If you are a salaried individual, you need to have a minimum of one year of employment, including at least six months at present work.
- If you are a self-employed professional, you must have been in business for at least one year.
How to Apply for a Two-Wheeler Loan?
Applying for a 2-wheeler loan is the easiest task ever. Just follow the steps given below, and your loan will be sanctioned in no time:
Online application process:
- Visit the bike loan website online.
- Slide down to the ‘Apply for a Loan’ section.
- Submit your information and choose the dealership from which you wish to purchase the bike.
- Check the box to agree to the terms and conditions, and press ‘Apply Now.’
Offline application process:
- Find your local dealership.
- Speak with a dealership representative about your requirements.
- Along with the loan application form, provide the KYC and income verification papers, as well as one passport-sized image.
- Your loan will be granted within 24 to 48 hours, depending on the papers supplied and the speed of verification.
A bike loan can be very beneficial to you while purchasing your dream ride, and with a low 2 wheeler loan interest rate, you can now visit your local dealership or apply online for a loan with quick approval. The eligibility criteria for these loans are pretty basic, which encourages everyone to apply for them.