Features and Benefits of applying two wheeler loans in India
Two-Wheeler loans are a widely sought-after financing option in India to start your journey of becoming self-reliant by traveling with your own two-wheeler. It’s a much economical and safer option as compared to the other alternatives. In India, a majority of the population depends on two-wheelers as the primary transport. Whether it is the remote village or metros, two-wheelers remain the ride of choice preferred by millions of Indians.
Here are the key features and benefits of two-wheeler loans in India.
Features of Two-Wheeler Loans in India
Easy-to-meet eligibility criteria
The first important feature of two-wheeler loans is the eligibility criteria. Every bank or financial institution sets easy-to-meet eligibility criteria related to salary, age, credit score, and residential status. You don't need to have an annual income salary within the taxable income range. For someone who is earning around 100000 INR per year, getting a bike loan approved is not a herculean task.
Click here to find out the eligibility criteria of two-wheeler loans.
100% paperless approval
Gone are the days when one had to wait for long for a loan to be approved. With the improvements made in the loan approval procedures over the last few years, the sanctioning time of two-wheeler loans came down within a day. The whole process from submitting a loan application to uploading documents is digital. It just takes a few hours and not days to get your loan sanctioned. 100% paperless procedure.
Low-processing fees
The processing charges for availing of the two-wheeler loan are quite affordable. It ranges from 0.25%-5% of the loan amount. All banks and financial institutions have specified a minimum and maximum limit for the fees.
No prepayment charges
It is quite common that if someone has surplus cash they always go for settling the liabilities. However, certain loans impose a penalty charge when the loan is paid off in full before the specified tenure. In the case of two-wheeler loans, the prepayment facility is available and that is too free of cost by some of the lenders, if applicable, then the charge is minimal. One can pay off his/her loan liability even before tenure (called foreclosure of the loan) after the regular payment of at least 6 EMIs.
Benefits of applying for Two-Wheeler loans in India
Attractive interest rates
Banks and NFBCs these days are providing two-wheeler loans at very feasible interest rates. It ranges from 11% to 27%. The varying interest rates depend on the NBFCs and banks you approach. The main factors that decide the interest rate of two-wheeler loans are income status, employment, bike on-road price, and creditworthiness.
Affordable financing option
With the increase in the number of commuters who wish to travel quickly, safely, and efficiently, the demand for two-wheelers has gone up tremendously. But everyone can’t afford to buy a two-wheeler with their savings. For them, applying two-wheeler loan is one of the most feasible and affordable options. The biggest benefit of doing so is not facing a financial dilemma at the time of buying a dream vehicle.
Tie-up with two-wheeler dealers
Most of the lenders of the top banks and NBFCs nowadays collaborated with the two-wheeler dealers. This collaboration makes it easier for the buyer to minimize the loan processing time. Many loan providers offer discounts and additional offers in collaboration with bike manufacturers from time to time. You can make the most of features like discounts, cashbacks, free insurance, and even a waiver of the registration fee. It makes the two loan application procedure more transparent.
Best financing option for building credit
Since the cost of buying a two-wheeler is less, it makes two-wheeler loans the easiest of all the loans to be paid off and it is an opportunity for young professionals to start off with their credit. Any score which is 750, or above is considered a good credit score to get a loan approved. Whenever you apply for huge amounts of loans like home loans, business loans, or car loans, you must be having a good credit score. It is possible after applying for two-wheeler loans.
Easy repayment options
Two-wheeler loans are smartly spread out over a longer tenure i.e., 12 months-60 months. It reduces the undue financial burden on the applicant. The flexibility to choose the tenure allows the borrower to plan repayment after evaluating the monthly budget and earning.
Insurance Cover and Marginal Premiums:
According to the Indian Motor Act, most of the lenders offer insurance cover for both the vehicle, as well the accidental cover for the buyer at a marginal annual premium while sanctioning the loan.
Bottom line
Day by day, the traffic is getting overwhelming and the public transport, overcrowded. Nothing helps you navigate through the chaos better and makes you self-reliant like your dream bike. Apply for Two-wheeler loans online to buy your dream two-wheeler and get through the maddening city traffic with ease.
