Two wheelers have now become a necessity for working individuals and students living in Indian cities and towns to make way and reach offices and colleges on time, when almost every day the major arteries of the cities remain blocked with traffic during peak hours. Two wheelers are one’s best friend when it comes to cutting through major traffic jams by opting for routes which involve passing smaller lanes and streets.
Two wheelers are used by individuals of a wide array of age groups. These vehicles range from the very basic scooty models to high-end fashionable bikes. Financial institutions do offer loans to those who wish to purchase two wheelers. A basic model costs around forty to forty five thousand rupees whereas a high end model can cost a few lakhs. Whatever your wish may be, banks do offer two wheeler loans if you wish to purchase a new two wheeler. Getting a loan application approved for a new vehicle is easier than a second hand vehicle loan approval. In India at present only selected banks offer a two wheeler loan in case of pre-owned vehicles.
While deciding upon a two wheeler loan the following points must be noted to assure that you choose a loan which is most suitable:
• Value of Margin: Any bank offering a loan to buy a two wheeler approves up to 90% of the value of the bike or scooty. The rest is the amount known as the margin- a value which must be paid by the buyer. The percentage to be kept as margin varies from bank to bank. So, this must be checked prior to finalising the loan.
• Two wheeler loan interest rate: while securing a loan the most important point to be noted is the interest rate charged by the bank. This varies from bank to bank. The two wheeler loan interest rate depends on the principal amount, duration of the loan, credit history of the loan applicant and type of loan being opted for. A major factor which determines how ideal a loan is, depends on the interest rate charged by the bank.
• Loan duration: the duration of a two wheeler loan varies from one to four years. As a buyer one should consider the EMI to be paid each month and accordingly determine the loan based on its duration. If EMIs are high the loan is repaid faster and there is an overall gain but if one cannot pay high EMIs every month, opting for a loan of three to four years is more sensible.
In most cases it is seen that banks which have a tie up with the dealers of two wheeler vehicles do not offer attractive loan options. So, buyers who wish to purchase a two wheeler by taking a loan must conduct their own research and procure information regarding loan offers provided by different banks before taking the final decision.
Two wheelers are used by individuals of a wide array of age groups. These vehicles range from the very basic scooty models to high-end fashionable bikes. Financial institutions do offer loans to those who wish to purchase two wheelers. A basic model costs around forty to forty five thousand rupees whereas a high end model can cost a few lakhs. Whatever your wish may be, banks do offer two wheeler loans if you wish to purchase a new two wheeler. Getting a loan application approved for a new vehicle is easier than a second hand vehicle loan approval. In India at present only selected banks offer a two wheeler loan in case of pre-owned vehicles.
While deciding upon a two wheeler loan the following points must be noted to assure that you choose a loan which is most suitable:
• Value of Margin: Any bank offering a loan to buy a two wheeler approves up to 90% of the value of the bike or scooty. The rest is the amount known as the margin- a value which must be paid by the buyer. The percentage to be kept as margin varies from bank to bank. So, this must be checked prior to finalising the loan.
• Two wheeler loan interest rate: while securing a loan the most important point to be noted is the interest rate charged by the bank. This varies from bank to bank. The two wheeler loan interest rate depends on the principal amount, duration of the loan, credit history of the loan applicant and type of loan being opted for. A major factor which determines how ideal a loan is, depends on the interest rate charged by the bank.
• Loan duration: the duration of a two wheeler loan varies from one to four years. As a buyer one should consider the EMI to be paid each month and accordingly determine the loan based on its duration. If EMIs are high the loan is repaid faster and there is an overall gain but if one cannot pay high EMIs every month, opting for a loan of three to four years is more sensible.
In most cases it is seen that banks which have a tie up with the dealers of two wheeler vehicles do not offer attractive loan options. So, buyers who wish to purchase a two wheeler by taking a loan must conduct their own research and procure information regarding loan offers provided by different banks before taking the final decision.
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