The Complete Guide To Getting A Two Wheeler Loan Within Minutes
It’s undeniable that getting your vehicle brings with it a sense of freedom, and the first vehicle one generally owns a two-wheeler. The experience of a two-wheeler is liberating, and in addition to being cost-effective, a two-wheeler is the perfect means of transport for everyone.
If you have been thinking of shelving away your dreams of owning a scooter or a bike just because you seem to lack the necessary funds or would rather put your funds aside for emergencies, we have some good news for you! You can achieve your dreams of owning a personal two-wheeler vehicle with the help of external financing in the form of two-wheeler loans!
Why Should You Go for a Two Wheeler Loan?
Two Wheeler Loans are Safe and Affordable: Regulated by government and RBI guidelines, the two-wheeler loans offered by various financial organizations within the Indian market are a transparent and secure option for you to get the two-wheeler you have been dreaming of. All associated charges and fees should be mentioned clearly before you apply for the loan, and your repayment schedule is figured out beforehand as well.
You Get to Put Your Savings Aside for Emergencies: For the general populace, the cost of a two-wheeler is a quite substantial drag on resources. However, if you apply for a two-wheeler loan instead of using your savings for a vehicle, you free up your existing funds. You can keep your cash aside for emergencies as well as personal expenses. Additionally, you can also use the funds at hand to invest in instruments of your choice like mutual fund schemes, stocks, money market instruments, insurance policies, or any other assets.
Now that you know bike loans (or scooter loans, or whatever you want to call them) are a safe and beneficial option, without any further ado, in this post we provide you a complete guide to taking out a swift two-wheeler loan without any issues!
Understanding the Basics:
If you are taking out a two-wheeler loan online for the first time, the very first thing you must do is have a clear idea of the terminology associated with such loans: things you’d need to know to plan for your loan and select a lending corporation.
The Loan Amount: First up is the two-wheeler loan amount, and the title is pretty self-explanatory. This is the amount you’d be borrowing, also dubbed the principal amount.
Loan Eligibility: Before deciding on your loan eligibility – that is, if you should be lent the loan amount you are applying for – the cost of the two-wheeler of your choice and your repayment capabilities are taken into account.
Repayment Capacity: How is your repayment capacity decided upon? Your current monthly income and spending habits are looked into, as well as the records of any other loans you might have previously taken out. With this information, you can calculate the monthly amount (EMI) you can repay for the tenure of the two-wheeler loan. It’s to be noted that your repayment capacity directly affects your eligibility for taking out a certain loan amount.
EMI: EMI is the acronym for Equated Monthly Installment. As mentioned earlier, the EMI is the amount you’d be expected to pay back to your lender every month. Each installment of your two-wheeler loan EMI consists of a portion of your loan amount and the interest accumulating on the loan.
Interest Rate: This aforementioned interest being accrued on your principal amount is calculated on the basis of a fixed percentage known as the interest rate.
Loan Tenure: This is the duration of your bike loan. The loan tenure is the number of months you’d need to comfortably repay your loan amount.
Processing Fees: Finally, the processing fee is a fee you have to pay for the processing of your two-wheeler loan application.
Now that the terminology is out of the way, let’s see how you should ideally plan for a two-wheeler loan, shall we?
Planning for Your Two Wheeler Loan:
Check Your Loan Eligibility: Some of the standard criteria for a two-wheeler loan application in India include: If you are a working professional, your age should be a minimum of 21 years to apply and a maximum of 60 years when the tenure ends. If you are self-employed, you should be a minimum of 21 years old and a maximum of 65 years when the tenure ends. An applicant is supposed to have a minimum earning per annum, depending on the type of city you are in. A minimum residence in the same city for one year with a phone number at residence/office. Lending institutions typically also take into account your CIBIL score to determine your loan eligibility.
Research: With a wide range of two-wheeler loan choices available in the Indian market today, it becomes difficult to choose the best. Understand the benefits provided and additional eligibility criteria asked for by a lender, compare a few brands, and then select the one which suits your needs and preferences the best.
Calculate EMI: It’s critical to calculate the two-wheeler loan EMI before you initiate your credit request. Determining how much EMI you would be paying during your loan tenure can help you better understand how a personal loan might affect your monthly expenses and lifestyle, and help you come up with a sturdy repayment plan. Online lending organizations usually provide an EMI calculator so you can have an idea of what kind of amount you’d be paying monthly to repay your loan amount and interest. The EarlySalary EMI calculator, for instance, can calculate your two-wheeler loan EMI based on the details you’d have to feed into it. Checking with an EMI calculator before applying for your two-wheeler loan would be a smart way to begin the process. Calculating your two-wheeler loan EMI is incredibly simple with the EMI calculator offered by EarlySalary. With it, you can avoid manual calculations, as the calculator takes into account your loan amount, tenure, and interest rates, and determines your two-wheeler loan EMI.
Have a Repayment Plan: Formulating a repayment plan beforehand would reduce a lot of stress for you. Along with planning your monthly budgets for the loan tenure, put money aside for emergencies, and don’t forget to count in the expenses of fuel and various two-wheeler specific service charges.
Factors affecting interest rates: As for the interest payment associated with getting a two-wheeler loan, ensuring that your financial standing is good in terms of repayment, and you have a stable and good net income will help you in taking out your two-wheeler loan at a low rate of interest.
Purchase Plan: And finally, it’s crucial to keep your eyes peeled for attractive discounts and offers, especially around the time of festivals or any anniversaries. This might include benefits like free insurance or reduced processing fees, which will, of course, ultimately decrease your overall costs.
And finally, coming to the actual application process, below we have compiled a list of steps you need to follow to take out a bike loan:
Steps to Follow to Apply for a Two Wheeler Loan:
Select the Lender: Consider factors like processing charges, interest rates, plan benefits, coverage, customer service, and other relevant factors before selecting a lending organization for your two-wheeler loan – online or offline.
Confirm Loan Eligibility: Most online lending websites calculate your eligibility for a two-wheeler loan on their own, which makes the process a lot more straightforward. All you’d usually have to do is provide some information they ask for.
Application: With most lending organizations, the application process for a two-wheeler loan can be completed entirely online. Most would require you to fill in your personal and bank details as required. Also, details about your two-wheeler are supposed to be refurbished like road price, name of the dealer, RTO location, etc. Ideally, though, you should pick a lender that offers you a loan without asking too many questions, since minimum documentation and quick processing are mandatory for a hassle-free two-wheeler loan application procedure.
Documentation: And finally, to complete your two-wheeler loan application, you’ll typically need to provide some or all of the following documents:
And there you have it, everything you need to know to apply for a two-wheeler loan! We do hope you’d find this guide of use!
A lot of us usually hesitate before getting a loan because of a complex and lengthy application and disbursal procedures, higher interest rates, processing fees, etc. However, applying for an EarlySalary Two Wheeler Loan is an instantaneous and hassle-free process, and even newly salaried employees and anyone without a salary slip can apply for the EarlySalary two-wheeler loan!
In fact, the EarlySalary Two Wheeler Loan plan comes with flexible repayment tenures and zero prepayment charges and helps in receiving up to INR 2,00,000 for your two-wheeler loan. Moreover, we don’t require you to pledge collateral or ask for down payments – unlike most of your traditional financial institutions – and we offer a fairly low, fixed rate of interest that remains the same in your entire repayment span despite any changes in the RBI rates.
The application process for an EarlySalary Two Wheeler Loan can be completed fully online.