The social distancing norms of the COID-19 pandemic require commuters to resort to alternative modes of transportation. Having a two-wheeler can help you maintain social distancing and also conveniently navigate through heavy traffic. It also enables you to attend work or reach home on time. You no longer have to risk your life by travelling through packed buses and metro.
However, the unprecedented pandemic has also induced financial instability, leaving almost everyone out of funds to manage their finances. Not everyone can afford to buy, but it doesn’t mean that you should give up on your dream of owning a two-wheeler. You can opt for a two-wheeler loan and get one step close to public conveyance.
A 2-wheeler loan is the best way to achieve your goals without putting any burden on your pocket. Some lenders offer up to 100% of the vehicle’s on-road as a loan. The two-wheeler loan interest rate often starts from 0.99%. The best part is that you have the option to repay EMIs based on your needs within a favourable loan tenure.
Advantages of applying for a two-wheeler loan
- There is flexible repayment loan tenure, which ranges from 12 to 48 months.
- The interest rates are substantially low. Almost anyone can apply for a two-wheeler loan.
- You can assess your needs and choose an affordable EMI using the bike loan EMI calculator.
- Two-wheeler loans are approved quickly.
- It is also up to you to choose your down payment amount.
Different stages involved in availing a two-wheeler loan
Compare lenders
The very first step in availing of a two-wheeler loan is finding the right lender. The principal loan amount, the interest rate, and the loan tenure vary from lender to lender. You will need to find a reputed lender with a higher loan amount, lower interest rate, and flexible loan tenure. You will be able to manage your finances without any burden on your pocket.
Eligibility Criteria
After finding your preferred lender, check their eligibility criteria and ensure that you meet their requirements before applying for a 2-wheeler loan. The standard criteria set by banks and non-banking financial companies are:
You must be an employee of either a private or public company or own a business with a sure yearly net profit.
The eligible age at the time of application is generally 18 years and 65 years at the end of the loan tenure.
A salaried individual must show a minimum net income (based on company policy).
A self-employed individual must earn a net profit based on the company policy.
Know the loan amount
The eligible loan amount wholly depends on your payment capacity and the two-wheeler’s market price. Some lenders offer up to 100% of the bike’s on-road price as a loan. However, you must find out how much the bank is offering you as a loan.
Down payment
While applying for an auto loan, you must factor in the down payment amount you will have to pay. It would be wise to pay as little as possible in a down payment. So, look for lenders that offer minimum down payment to get a two-wheeler loan. You may also find lenders who offer zero down payment.
Credit score
Your CIBIL score is the primary factor your lender considers while approving your loan. It reflects your payment behaviour along with your credit behaviour. Most lenders consider a credit score above 750, and if you end up having less than that, it will reflect negatively on your loan application, and the lender may even reject your loan application on the spot.
So, maintain a healthy credit score to get the loan amount you need along with a lower interest rate.
Determine an affordable EMI
After meeting your lender’s eligibility criteria, spend some time assessing your financial needs and determine how much you can afford to pay as EMI every month. To calculate your EMI, you can use your lender’s online bike loan EMI calculator and figure out an EMI amount based on your requirements. You will need to come to a suitable based on your preferred loan amount, interest rate, and loan tenure.
In brief
A two-wheeler loan is the best option to buy your favourite bike without compromising your finances. It offers attractive bike loan interest rates with flexible loan tenure. To avail of a two-wheeler loan, you must find a reputed lender, meet their eligibility criteria, and have a healthy credit score.
