Guide for a Two-Wheeler Loan

Two-wheeler loan are very common in India and are provided for customer who wish to buy a scooter or bikes from any company that is registered.

This loan is given for two-wheelers, such as scooters and bikes. This loan has become easy and convenient to apply. Lending institutions offer affordable EMIs for the borrowers that make them manageable. A two-wheeler helps to have flexibility in the busy schedule of an individual.

Two Wheelers Loan Interest Rate of Bank

  • State Bank of India: 12.90% p.a.
  • HDFC: 14.50% p.a.
  • Punjab National Bank: 11.15% p.a.
  • Axis Bank: 11.00% p.a.
  • Allahabad Bank: 13.00% p.a.
  • ICIC -12.75%p.a

Note: The above data can change as per the new regulations for banks.

Some Banks providing 2 wheeler loans

1) HDFC Bank

  • Web-Based Application Process
  • Monthly minimum income: Rs10,000
  • Repayment options are Flexible and quick loans Approval and disbursement.

2)Axis Bank

  • Limited documentation is required.
  • Loan tenure is up to 4 years.
  • E-application Process

3) Union Bank of India

  • Repayment tenure is up to 3 years.
  • There is no processing fee.
  • offers up to Rs 10 lakh. Loan on a 2-wheeler

Document Required for a 2-Wheeler Loan

1) Filled Application Form

2) Passport-size photo

3) Income proof, such as

  • Bank statements,
  • salary slips,
  • ITRs, and others

4) Address Proof; Bills; Passport

5) Identification Proof:

  • Adhaar card
  • Permanent Account Number
  • Driving License
  • Passport

6) For Salaried Individual

  • The age must be at least 21.
  • Maximum age At the end of loan tenure, it must be between 65 and 70
  • Monthly income should be $7,000
  • The credit score must be above 750.
  • The loan amount will be 100% up to the Vehicle Amount.
  • At least 1 year of work experience
  • Must be staying at the current location for 1 year.

7)For self-employed individuals

  • The age must be at least 21.
  • Maximum age At the end of loan tenure, it must be between 65 and 70
  • Monthly income should be $6,000
  • The credit score must be above 750.
  • The loan amount will be 100% up to the Vehicle Amount.
  • At least 1 year of work experience
  • Must be staying at the current location for 1 year.

Benefits of a Two-Wheeler Loan

1) Low-cost EMI

Two-wheeler loans from Emi are affordable and convenient, which makes the payment more manageable for the borrowers.

2) Building a Good Credit Score

A two-wheeler loan builds timely payments. Build a good credit score, which will help in the future for other loans.

3) Easy Process: The loan application process is both offline and online, which makes it easier for the borrower.

4) The repayment option is flexible.

As per the borrower, they can choose the payment option, such as long-term or short-term.

In the longer term, the EMI is lower but the interest rate is higher, and in the shorter term, the rate of interest is lower but the EMI is high.

5) Fund Access: The loan will provide A quick and easy process to fund the purchase of the bike you desire without paying the full amount

Applications Process for Loan of 2 Wheelers

Step 1: Research and shortlisting

Understand the market and choose what fits your requirements, such as a low EMI longer period extra. Individuals can also use an EMI calculator and learn about the estimation.

Step 2: Approach the bank or lending institution.

After the above step, choose a bank that fits your requirements and fulfills your needs then approach the bank.

Step 3: Application Process

In this step, fill out and submit the application form and the supporting documents, such as the Adhar card, PAN card, etc.

Step 4: Document Verification

At this step, the lender will verify all your documents and your profile before approval.

Step 5: Loan Disbursement and Completion of Paperwork

Once the loan application is approved, the lender will directly pay the seller of the two-wheeler. After this, certain paperwork is required to be completed

Conclusion:

Two-wheeler loans are simple and easy to apply, but before applying, check carefully what your requirements are and compare them with different bank interest rates. Compared to other loans, such as gold loans, home loans, etc.

A 2-weeker loan is easy to apply for, and a 100% loan vehicle amount is given. Also remember, once you take a loan, pay it on time because it will affect your credit score, and a two-wheeler loan can improve your credit history.