Here is What You Need to Know About Two-Wheeler Loans

In our fast-paced lives, every bit of help and support matters. Whether it is the financial or non-financial help, it could be a means to work or a means to travel, every bit of help and support is welcome. This becomes even more important in large metro cities, where time is of the essence and almost everything is priced steeply. One of the biggest concerns in larger cities is transportation, commuting to and from work can become especially taxing because of extreme weather, large crowds, pollution, insufficient public transport, and more. As per some estimates a huge 7.5 million people use local trains to commute in Mumbai alone. Considering the stress this puts on public transport, it may be a better idea to use a two-wheeler for travelling within the city. Everyone may not be able to afford a new two-wheeler but there are several financing options available which allow for a far greater number of people to buy and use their own two-wheeler.

There are a number of benefits of getting a two-wheeler loan, some of the major ones are mentioned below:

1. Lower Immediate Financial Burden: These loans help you split the payment into affordable monthly EMI's which are paid on a monthly basis. A small upfront down payment followed by monthly EMI's and you can bring home your favourite a two-wheeler.

2. Convenient Application Process: The loan application process and documentation requirements are fairly simple and straightforward, the entire process is quick, easy and hassle-free.

3. Multiple Repayment Options: Repayment options include Post-dated Cheques, NEFT, NACH, IMPS, Mobile Wallets, etc.

4. Flexibility Tenure: Two-wheeler loan tenure is usually around 2 years, but one can borrow for up to 4 years.

5. Affordable Pricing: These loans are offered at competitive interest rates, which tend to differ from one NBFC/ Financial Institution to other.

Two Wheeler Loan Eligibility Criteria:

1. Age Limit: Most NBFCs/ Financial Institutions require a minimum of 18 years of age, however, most borrowers tend to be above the age of 21.

2. Loan Amount: Loan amount should not exceed INR 10 lakhs. Although some NBFCs/ Financial Institutions give loans up to INR 50 lakhs depending upon your income and creditworthiness.

3. Monthly Earnings: A minimum post-tax monthly income is required by most NBFCs, Banks and Financial Institutions.

4. Employment: Loan applicants must have satisfactory employment or they should be self-employed with a steady income. Your employment tenure also affects your standing and creditworthiness in form of an NBFC/ Financial Institution.

5. Residence Proof: Individuals with a permanent address have a higher chance of getting a loan as it makes them easier to follow up with you in case you miss out on your monthly EMI's. A permanent address ensures that the lender can trust you with his money.

6. Credit Score: A credit score is a summary of your credit report. A good credit score means good financial habits and an ability to make timely payments. Most NBFCs/ Financial Institutions look for a minimum credit score of 700 to ascertain your creditworthiness.