Index Of The Blog
India has one of the largest consumers of two-wheelers in the world. The reason being that it is a favourable and convenient mode of transportation in overpopulated metropolitan cities. With more people commuting to work and businesses providing door-to-door services every day, traffic congestion has significantly increased.
Two-wheeler vehicles are among the most preferred two-wheeler vehicles in India. Its popularity stems from the fact that it is the best option to navigate heavy traffic and reduce commute time. The best part is that it requires cheaper maintenance cost and can be parked almost anywhere you go.
The unprecedented COVID-19 pandemic has brought the economy to its knee. Many businesses had to close, and many people lost their jobs, due to which not everyone can afford to purchase a bike. However, you can still buy your two-wheeler without putting any burden on your finances by availing of bike finance.
Two-wheeler loans are easy to apply, and there are quick approval and disbursal processes. You can get up to 100% of the on-road price as a loan. The interest rates are affordable, and the loan tenure is flexible. You can easily manage your finances by applying for bike finance.
Advantages of two-wheeler loans
- There is flexible repayment tenure, which usually ranges from 12 to 48 months.
- You have the freedom to choose your bike, and the bank will finance up to 100% of your vehicle’s on-road price.
- The documentation process is simple and easy.
- Since everything is done online, it is a hassle-free loan.
- It offers the most attractive bike loan interest rates, that enable you to make monthly payments without adversely affecting your finances.
- Making payments on time also improves your CIBIL credit score.
How to get your bike finance approved easily?
- Research and compare lenders
The first thing to do before starting your bike finance application process is to conduct thorough research. You must study different banks and non-banking financial companies, their loan terms, and customer reviews. Carefully compare them and choose a lender that offers an easy and convenient way to get a loan.
Furthermore, if you have friends or relatives who have taken two-wheeler loans in the past, ask them about their experience and the benefits they had secured. You must remember that a lower bike loan interest rate should not be the only criterion for choosing a lender. It is crucial to read the lender’s terms and conditions warily.
- Ensure that you eligible
Bike finance eligibility criteria may differ across banks and NBFCs. Each lender has different requirements in terms of the borrower’s age, employment status, and credit score. So, you have to make sure that you are eligible to apply for two-wheeler loans.
The common criteria to avail of two-wheeler loans are:
- You must be either a salaried person working at a private or public undertaking or
- You must be a self-employed individual with a certain net profit, based on the lender’s company policies.
- Generally, the age at the time of application must be 18 or above, and 65 or below at the end of the loan tenure.
Moreover, maintaining a better CIBIL credit score and having a stable income increases your chance of getting a two-wheeler loan approved easily. You may need to negotiate the bike loan interest rate.
- Utilize bike finance EMI calculator
Every lender has an online two wheeler loan EMI calculator, which can be used to determine Equated Monthly Instalments. The major components of an EMI calculator are loan amount, interest rate, and repayment tenure. You can figure a flexible EMI for yourself without compromising your savings. You must also keep in mind that the larger your down payment, the greater your chances of getting your loan approved by the lender.
Also, you must assess your requirements and opt for a loan amount you need. Small amounts tend to get approved instantly as it indicates a low risk to the lender.
- Carefully fill your application and submit KYC documents
It is advisable to fill in your bike finance application form correctly and honestly. Minor errors like incorrect spellings or a piece of incorrect information on your credit report can cause rejection. Also, make sure you have all the relevant documents before applying for bike finance.
Although the documents required for two-wheeler loans differ from lender to lender, the documents needed include identity proof, address proof, bank statements, salary slips, and passport-size photographs. Always crosscheck with your lender about the documents, as the requirements may vary.
In short,
To get your bike finance approved, you will need to conduct thorough research to compare rates and find out the documentation required along with the eligibility criteria to get your bike finance approved.
