A two-wheeler loan helps you purchase a motorcycle or a scooter of your choice and allows you to pay for it in equated monthly installments (EMIs). As per the rising aspiration of youngsters in our country, two-wheeler loans are mostly applied for purchasing racer bikes, superbikes, scooter, scooty, or cruiser bikes. Lenders usually finance anywhere between 80%s to 100% of the on-road price of the vehicle. It is one of the best financing options when it comes to choosing an option that is easy on the pocket.
The interest rates, loan tenure, and other terms are determined with the applicant’s credit score and repayment history.
Benefits of applying for Two-Wheeler loans in India
The Eligibility criteria to apply for Two-Wheeler Loans:
The documents required to apply for Two-Wheeler loans are:
Fee and charges of Two- Wheeler loans
There are some charges that are levied over and above the interest rates when you take a two-wheeler loan.
Factors affecting interest rates of Two-Wheeler loans in India:
A credit score is a major factor that lender considers before approving any form of credit including two-wheeler loans. It is a three-digit number that ranges from 300-900. If you have a good credit score that is 750, or above, then the interest rates for your two-wheeler loan will be more attractive. So, if you have a low credit score, then the lender may consider you to be a risky customer and will increase the interest rate for the loan or reject your loan application. Always ensure that you check your credit score before applying for a two-wheeler loan.
If you have a positive and long credit history, the banks will consider you to be reliable and will offer you lower interest rates on two-wheeler loans. If you have a bad credit history, the interest rates will be higher as you will be viewed as a risky customer. So, before making any decision the lender will view your past transactions with your past credit products to check your creditworthiness and your reliability.
Income status and Job stability
The higher is the income, the lower the interest rate offered to an applicant for the two-wheeler loan. This is because the lender considers you reliable and creditworthy to repay the loan without any defaults. One must be having a regular source of income. Also, a job with a reputed company that is listed with the bank can act as an added advantage to get a lower interest rate for the two-wheeler loan.
Relationship with the lender:
If you have a good and healthy relationship with the lender you are borrowing from and are an existing customer with them, then the interest rates can be negotiated for, and one can get a lower interest rate on your two-wheeler loan.
Since we're living in such unprecedented times, traveling via public or shared transports is no longer feasible when you commute daily. Besides, when traveling out on the road, you deserve to feel safe! A private vehicle can give you the freedom to travel safely and comfortably. Bikes and scooters are costly, and it is generally difficult for a person to pay the entire amount in one shot. With two-wheeler loans, owning a pair of wheels is now easy and affordable.