Start a discussion about loans, and usually it is personal loan that dominates the conversation, although nowadays the topic of bike loan is also gaining traction. When you check the loan details for a two wheeler, the information would be a lot different from the details pertaining to a personal loan. For example, the bike interest rate is lower as compared to the rate of interest that lenders levy on a personal loan. As regards the eligibility criteria and the requisite documentation, the benchmarks are more stringent for a personal loan than a bike loan, hence proving the latter’s convenience.
There are several other benefits associated with a bike loan, namely same-day approval, and a flexible repayment tenure, both of which would have a positive impact on your financial situation. Given the favourable terms of this loan, it is but natural to make further inquiries, particularly if you are on a look-out for a funding option to buy a latest two-wheeler model. Exploring the various aspects of two-wheeler loan details would be a good place to start, as doing so would broaden your understanding on how to avail of and repay it.
To this effect, discussed as follows are the features of a two-wheeler loan –
Possibility of providing 100% financing for the purchase of a two wheeler of your choice;
No requirement of a collateral to avail of this financial product, meaning you can receive the funds without pledging an existing asset;
Courtesy of affordable interest rates, repaying this loan does not aggravate your financial burden;
Flexibility in repayment terms, particularly the tenure, allows for long-term planning of finances in terms of how much EMI falls within your budget;
Swift approval and disbursal due to which this loan option is one of the easiest in the niche;
Given the features, this loan is obviously ideal for people who are not in favour of making a down payment on purchase of a bike. In addition you can apply from within the comfort of your own home and pick the tenure for repayment as per the current financial situation. While applying, there are three aspects that would require a proactive approach from your end as an applicant, namely eligibility, documentation and interest rate.
Following are the eligibility criteria mentioned in the two-wheeler loan details for a two-wheeler –
You must mandatorily be older than 18 years and younger than 65 years to apply for this loan;
Your residence should fall within the area/region as specified by the lender;
Job stability plays a crucial role in establishing eligibility, regardless of whether you are salaried or self-employed;
A good credit score which reflects well on your financial history and transactions;
Equally mandatory it is to submit relevant documents that would enable the lender to verify your eligibility for the loan, and these include –
Any valid national document that can serve as irrefutable proof of your identity;
Proof of current address along with documents that verify that you have been living at the residence for more than one year;
Bank statements and salary slips of the number of months as specified by the lender;
ITR statements of the last couple of months;
Name and details of the employer;
Understanding the bike interest rate is a little trickier and involves various diverse factors. Because this component directly impacts the amount that you are supposed to pay as EMI, your objective should be to lower it as much as possible. To avail of the bike loan at low interest rates, mentioned as follows are some useful tips –
Maintain a high credit score so that lenders are convinced of your ability to repay the amount on time without defaulting on any of the instalments;
Compare interest rates offered by different lenders vis-à-vis the features and identify one which appears to be the most suitable deal;
Explore collaborations between lenders and brands that could work in your favour;
Await pre-approved loan offers from lenders as these usually come with interest rates that are lower than normal loans;
Take advantage of the festive season discounts and offers to lower the interest rate on the purchase;
Negotiate with the lender, particularly if you have been a long-standing customer with a relatively positive credit history;
Final thoughts
By using an EMI calculator that is available on the lender’s website, you can identify the appropriate loan amount, along with a suitable interest rate to be paid every month. Then access the application form and fill in all the details with accurate information that would correspond to the lender’s database. Upload all the documents as mentioned on the web page and click on the submit button. Alternatively you can also visit the lenders’ premises, interact with the concerned person, and go through the entire procedure in person.
After submission, lenders would check the two-wheeler loan details and accordingly approve/reject the application. This takes just a day or two, and as the last step the amount appears in your account on the same day as the approval.
Are you Looking For the Lowest Interest Rate on Your Bike Loan? Check the Two-wheeler Loan Details
