Two Wheeler loan will make your dream come true
Types of Two-Wheeler loan:
There are two types of two-wheeler loan, and we've listed both below:-
I. Secured loan:- In this type of loan, you get a two-wheeler loan against your two-wheeler or any other asset. But most of the lenders give two-wheeler loans against the two-wheeler under the secured loan. So if you're unable to pay the loan amount, the bank will seize your two-wheeler and sell it to recover the loan amount.
II. Unsecured loan:- This type of loan means that you don't have to give any assets as collateral. Instead, banks will provide you with a loan according to your credit score. That's why it is advisable to maintain a decent credit score. And some banks do reject the loan application if your credit score is low.
Advantages of two-wheeler loan:
There are many advantages of getting a two-wheeler loan:
I. Documentation:- You don't have to wait for weeks or months to complete the documentation process. You have to fill a small form, attach some necessary KYC documents, and give it to the bank. You can even apply for a two-wheeler loan online without going to your nearest bank. After submitting the form online, you can even track the process of your documentation.
II. Interest Rate:- Different banks offer different interest rates. So you can get a lot of options to choose from, and if you have a good credit score, you can bargain or negotiate the interest rate.
III. Loan Amount:- Some banks provide high loan amounts for two-wheeler loans. So you can buy your dream two-wheeler.
IV. Repayment:- Banks provide a lot of different repayment options or EMI options. So customers have complete flexibility to repay the amount however they want. Some banks (like PNB Two Wheeler Loan) do offer options like post-dated cheque and ECS.
V. Savings:- You don't have to give your savings to buy a two-wheeler now. You can apply for a two-wheeler loan and pay a small fraction of the amount every month until your whole loan amount, along with interest, is paid completely.
VI. Tax Benefits:- If you're self-employed and you're purchasing a two-wheeler for business purposes, then you can get tax benefits from it. You can get a tax deduction of up to INR 1 lakh p.a on the interest rate. But you'll have to get your loan sanctioned between the accounting year.
Eligibility:
The eligibility criteria are as follows:-
I. Age:- The minimum age required is 21 for two-wheeler loans. The maximum period required is 60 or 65. It depends from bank to bank.
II. Employment status:- You have to be employed to get a two-wheeler loan. Both salaried and self-employed individuals are usually preferred to apply for this loan.
III. Salary:- The minimum wage required is INR 5000-10000 per month.
IV. Experience:- You should at least have a year of work experience because banks don't usually give loans to freshers with 0 work experience. Banks have to be sure that you're eligible to pay back their money.
A lot of lenders don't ask for any down payment. But you'll have to pay the whole amount along with the interest each month in instalments. But don't take multiple loans at the same time because banks may reject your application for a two-wheeler loan. It will also affect your credit score if you pay the loan instalments late, so choose your budget according to the Two Wheeler Loan you are applying for.
Conclusion:-
You can calculate your budget using online tools like an EMI calculator. So that you can plan your expenses accordingly, choose the lender whose interest rate, loan tenure, and loan amount fits according to you. You can seek out some institutions that help you compare banks and lenders, and they even help you with the whole loan process. Choosing a two-wheeler is the best option. You can escape the unwanted traffic and road chaos.
