Two wheeler loan is quite popular in India since most of the population commutes by bike or scooter. It is inexpensive to maintain and may help one navigate the congested city streets with ease. Not only that, but it is a safer and more cost-effective solution when compared to the other options. So, if you’re thinking of buying a new bike or scooter, don’t hesitate. Instead, consider how you will fund the purchase.
Bike loans have attracted many people due to their low-interest rates, little documentation, and inexpensive processing fees. To begin, we will examine all elements of a bike loan, including benefits, interest rates, eligibility requirements, a bike finance EMI calculator, and necessary documentation.
What Are the Benefits of a Two Wheeler Loan?
Applying for a loan to purchase the bike you’ve always wanted can help you in several ways. Some of them are mentioned below:
- Obtain the finances required to buy the desired bike without using your savings.
- Repay your debt at a reasonable EMI.
- It helps in the improvement of your credit score.
- Available at low-cost interest rates.
- A loan-to-value ratio of up to 95%.
- Enjoy a variety of loan payback terms of up to 48 months.
What Is the Rate of Interest for a Two-Wheeler Loan?
When you start applying for a bike loan, you will notice that different lending institutes will offer you different interest rates. The reason is that several factors affect your rate of interest. To know more about them here is a list of all those factors:
- Credit Score
- Amount of the Loan
- Loan Term
- Vehicle type
- Borrower-Lender Relationship
- Tier of the city
After carefully considering all of these aspects, your lender will offer you an interest rate for your loan.
What Is a Bike Loan EMI Calculator?
The EMI is a very important tool to consider when applying for a two-wheeler loan. The Equated Monthly Installment (EMI) is the monthly payment made to the financial institution from which the loan was obtained. These payments include the loan’s principal and interest rate. EMIs allow the borrower to repay the loan in equal monthly instalments over a period of time. The vehicle will be held in trust to the lender until the last EMI.
A bike loan EMI calculator is a customizable tool that calculates your monthly EMI based on your interest rate and loan amount. It will simply provide you with an estimate of your monthly EMI so that you can plan ahead of time.
How to Use a Bike Finance EMI Calculator?
A bike finance EMI calculator is pretty easy to use. The loan duration and interest rate are the two most important aspects in determining the amount of monthly payments. Several lenders have a presence on the web and, as a result, allow the use of a two-wheeler loan EMI calculator on their separate websites. You may use these tools to receive an estimate of your EMI by entering the loan amount, interest rate, and loan tenure.
Follow the given steps to calculate your bike finance EMI calculator:
- Enter your loan amount. (maximum up to ₹1,00,000)
- Input the rate of interest.
- Select your loan repayment period.
- After entering all these details, click on “Apply for TWL loan”.
- An anticipated EMI amount will get generated immediately.
Here are some important notes concerning the EMI calculator.
Amount of loan: Remember that the greater the loan amount, the bigger the EMI.
Loan Term: The EMI will be lower for longer loan terms. The EMI will be greater the shorter the duration.
Interest rate: A higher rate of interest might result in a higher EMI.
Am I Eligible for Two Wheeler Loan?
There are very minimum requirements to be qualified for a two wheeler loan. Here is a list of all those eligibility criteria:
- Citizenship of India.
- You must be above 18 years.
- If you are a salaried individual Salaried you must be employed for at least one year, with at least six months in the present job.
- Self-employed professionals must have been in business for at least one year.
- There is no limit on monthly income.
What Are the Necessary Documents to Be Submitted for a Two Wheeler Loan?
When applying for a loan, every lender asks you to present specific documentation. The following are some of the general documents required:
- Passport size photo
- Filled out application form
- Identity proof
- Residential proof
- Income proof
- Job continuity proof
- Age proof
- Office address proof
- Business existence proof
How to Apply for a Bike Loan?
Here is a step-by-step guide to applying for a two wheeler loan in both online and offline methods.
- Go to your lender’s website.
- Move down to the ‘Apply for a Loan’ section.
- Provide your credentials and choose the dealership where you wish to buy your two-wheeler.
- Check the box to agree to the terms and conditions and select ‘Apply Now.’
- A representative from your lending institute will contact you as soon as they get your application.
- Visit your local two-wheeler dealership.
- Speak with a dealership representative about your request.
- Along with the loan application form, provide the KYC, income verification papers, and one passport-sized photo.
- Your loan will be granted within 24 to 48 hours, depending on the documents supplied and the simplicity of verification.
A two wheeler loan can help you bring your bike home without depleting all of your finances. We propose that you search the web for several bike loan providers. Several lenders provide varying interest rates; select the lender who gives the lowest interest rate to avoid paying a hefty EMI. There are also numerous bike loan websites that feature a bike finance EMI calculator that may help you calculate your EMI in advance and figure out which alternative is best for you.