Having your own vehicle is a matter of pride and convenience. Now you can have your very own bike or scooter without any hassle due to easy availability of two wheeler loans. While some may prefer paying in cash, most people need a loan to pay for their purchase. As something that accrues interest as you pay back over time, it’s better to come prepared before you take out a two wheeler loan. With increasing demand for two wheelers, getting a loan is fairly easy. The following steps will guide you through before you apply for a loan:
• Check your eligibility
Any individual above the age of 18years is eligible for taking a loan. However, some banks may prefer their applicants to be 21 years or older. Before applying for a two wheeler loan you must be prepared with all the documents that are required for your application- an address proof which is usually demanded in the form of household utility bills, a voter’s ID or a passport. The aforementioned documents other than household utility bills also serve as your proof of identity. You would also need to submit your salary slip from the past 3 months along with the bank statement and the latest TDS certificate as your proof of income to show that you meet the minimum income criteria before borrowing a loan.
• Credit score
Your credit score determines what type of loan you’ll be able to get from the lender. The credit score of the borrowers show their repayment capacity and is given importance in determining the eligibility of the borrower.
• Select your loan amount and tenure
Interest rates on two wheeler loans vary from bank to bank and from lender to lender. Depending on the type of two -wheeler required and financial background of the applicant, loans are available in both secured and unsecured forms. In case of a secure loan which requires pledging of a security against the liability of the loan, the rate of interest is relatively low. In case of an unsecured loan which does not require pledging of the asset as collateral, the interest rates are usually higher. To make it affordable to the borrowers, banks allow a repayment tenure which usually varies between a period of 12 months to 48 months. The borrower can choose any tenure as per their convenience.
• Submit your application
After you finalize your lender, you’re required to submit your documents validating your proof of income, resident proof and identity proof. Once the lender decides on your eligibility and the interest rate you qualify for, you’re ready to take out a two wheeler loan.
With such easy availability of loans, getting a two wheeler of your own is the most convenient way to travel around.
• Check your eligibility
Any individual above the age of 18years is eligible for taking a loan. However, some banks may prefer their applicants to be 21 years or older. Before applying for a two wheeler loan you must be prepared with all the documents that are required for your application- an address proof which is usually demanded in the form of household utility bills, a voter’s ID or a passport. The aforementioned documents other than household utility bills also serve as your proof of identity. You would also need to submit your salary slip from the past 3 months along with the bank statement and the latest TDS certificate as your proof of income to show that you meet the minimum income criteria before borrowing a loan.
• Credit score
Your credit score determines what type of loan you’ll be able to get from the lender. The credit score of the borrowers show their repayment capacity and is given importance in determining the eligibility of the borrower.
• Select your loan amount and tenure
Interest rates on two wheeler loans vary from bank to bank and from lender to lender. Depending on the type of two -wheeler required and financial background of the applicant, loans are available in both secured and unsecured forms. In case of a secure loan which requires pledging of a security against the liability of the loan, the rate of interest is relatively low. In case of an unsecured loan which does not require pledging of the asset as collateral, the interest rates are usually higher. To make it affordable to the borrowers, banks allow a repayment tenure which usually varies between a period of 12 months to 48 months. The borrower can choose any tenure as per their convenience.
• Submit your application
After you finalize your lender, you’re required to submit your documents validating your proof of income, resident proof and identity proof. Once the lender decides on your eligibility and the interest rate you qualify for, you’re ready to take out a two wheeler loan.
With such easy availability of loans, getting a two wheeler of your own is the most convenient way to travel around.
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