Are you planning to purchase a bike anytime soon? Are you worried about the finances and want to apply for two wheeler loan soon? If so, then let us take your worries away. Quikkloan is the best two wheeler loan provider marketplace is here to resolve all your worries.
What is a two-wheeler loan?
Two-wheeler loan is an amount that a buyer borrows from a bank to purchase a two-wheeled vehicle such as a scooter or motorbike etc. It is generally easier to get a loan approved from two-wheeler loan providers and the interest rates are also affordable.
Types of two-wheeler loans
You should know the types of two-wheeler loans available in the market even before you reach out to bike loan providers to apply for two-wheeler loans
Secured loans are taken against security or collateral. The collateral can be home, lands, bonds etc. These loans are easily available with a lower rate of interest.
However, you risk losing your assets in case of non-repayment of the loan.
These loans don’t need any collateral for 2-wheeler loan sanction. However, the rate of interest is quite high and not so easy to get.
Features of 2 wheeler loans
Credit score: A higher CIBIL score will fetch you a 2-wheeler loan easily. Keep the score high before you apply for two-wheeler loans.
The margin of finance: The margin of finance can go as high as 90% with some bike loan providers. Therefore, you need to just pay 10% as down payment.
Annual Income leverage:
You can apply for two-wheeler loans if you earn at least INR 50,000/- annually. Since loan tenure can extend up to 4 years, your EMIs won’t pinch your pockets.
It is good to cover the costs of accessories, insurance and registration in loan amount. The premium is often less if extra security and safety features are present in the vehicle.
No prepayment fee:
Many bike loan providers don’t charge a prepayment or foreclosure fee.
Age: You need to be a minimum of 18 years old to apply for two wheeler loan. Some bike loan providers also have21 as minimum age criterion.
Employment details: Salaried and self-employed with regular income can apply for two-wheeler loans. Most bike loan providers have minimum income criterion too, though it’s quite low.
Residential status: You Should have a minimum of 1 year in current residence to apply for a Bike loan
Credit score: You should have minimum 700+ CIBIL score to get loan approval. You can try peer-to-peer lending companies in case you have low CIBIL score.
You need the following documents before approaching a two-wheeler loan provider.
- ID proof such as PAN, Passport, Driving License, Voter ID and Aadhar card
- Address proof such as electricity bill, mobile bill etc.
- Employment proof: Salary slips and bank statements
Fees and charges
The processing fee is charged for processing the loan request. Prepayment fee is quite negligible in most banks and almost zero in some. Late payment fee is charged on EMI payment missed during loan repayment tenure. Some banks charge administrative Fee sometimes too.
If you need further help on 2 wheeler loans, do visit Quikkloan for quick and hassle-free guidance.