Two-wheelers have come to be the most preferred mode of commute as it takes less time and is lighter and easier to use. In the present times of heavy traffic, two-wheelers are time-saving and hassle-free. Taking a two-wheeler loan is easy, and it also does not put any financial burden on you because you have to pay the amount in instalments. Two-wheeler loans come to your rescue when you want to buy your dream bike and help you meet your financial requirements for the same.
What is a Two Wheeler Loan?
A Bike Loan helps you buy the bike or motorcycle you have always aspired and dreamt of. You can take this loan and pay the amount in equated monthly instalments as it won’t put any financial burden on you and you will also have the bike you have always wanted to buy.
Benefits of Availing a Two Wheeler Loan
● You can choose the bike you want to buy and have. It can be the bike you have always aspired for as the total cost of the bike will be financed by the lending institutions.
● You can save your money for times of emergency and not spend your savings to buy your favourite bike. You can take a two-wheeler loan and repay the amount in instalments which is easy as compared to using your savings.
● Taking and repaying the two-wheeler loan on time will also increase your credit score and improve your credit history. This will be beneficial for you whenever you avail a loan in the future.
● You can get a tax benefit for the two-wheeler loan under section 80EEB of the Income Tax Act.
● You can also get a low rate of interest on a two-wheeler loan as compared to the interest rate on a personal loan.
Factors to Consider before taking a Two Wheeler Loan
It is essential that you meet the eligibility criteria to avail a two-wheeler loan; otherwise, your application might get rejected. You need to fall in the age group of 23-60 years, be a citizen of India, have an address and age proof. Salaried and self-employed individuals are also eligible for the loan. The eligibility criteria might vary from lender to lender, and you must go through it before applying.
There are some crucial documents that you have to submit before you can get your application approved to get the loan. You will need salary slips, identification proof, employment proof, bank statements and more. If you fail to arrange all the documents, you will not be eligible to avail a two-wheeler loan.
- Credit History:
You also need to have a good credit history and an excellent credit score if you want to avail a two-wheeler loan. Credit score proves your creditworthiness and shows the lender that you are capable of repaying the loan amount. A poor credit score also leads to an increased interest rate, and vice versa because of which it is essential to maintain a good score.
- Interest Rates:
The rate of interest on a loan plays a crucial role, and it is essential to check with various lenders for interest rates. It’s always best to choose from the best deal offered to you, and it can only be possible if you check with multiple lenders. Do not just go with one lender as you might end up paying a higher rate of interest. You can also use the bike loan EMI loan calculator to calculate the monthly instalments that you will be paying.
Steps to Take a Two Wheeler Loan:
● You need to do in-depth research and decide on a lender from whom you want to take the two-wheeler loan. You will find plenty of options online, and so you can research online and come to a decision.
● Further, you will have to check your eligibility before applying for a two wheeler loan and also get an idea about the documents that will be required to apply for the loan so that you can arrange all of them in time. (Checkout your eligibility criteria here)
● Then it is vital that you calculate the loan EMI using the bike loan EMI calculator, so you will know how much amount you have to pay per month. This will help you manage your finances and ensure that you are not under any financial obligation.
● You have to submit the documents such as the address proof, employment proof, bank statements etc. Once the bank checks all the documents and makes sure you are eligible for the loan, you will get the loan amount in your bank.
Everything that you need to know about the two-wheeler loan is mentioned above. It is crucial that you know things in detail and have all the information so that you make the correct decision and get the best deal.