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A Guide to Choosing the Best Two-Wheeler Loan
Posted on Tuesday, November 10th, 2020 | By IndusInd Bank
With a lot of banks eager to give you loans, you can easily buy the latest two-wheeler without worrying about the expenses. However, before choosing a loan, here are some important points to keep in mind so that you get the best bargain.
Loan Eligibility Criteria
Beforeyou applyfor two-wheeler loan, ensurethat you qualify for availing the loan. For this, check with your lender’s eligibilityrequirements for a two-wheeler loan.
To availa two-wheeler loan, salaried individuals must –
- Be between 21 years to 60years (at the time of retirement)
- Have a minimum gross salaryof Rs. 10,000/month.
- Have a stable current employment for a minimum of 1 year.
Eligibilitycriteria for self-employed individuals –
- Age between 21 years and 65years.
- A minimum of 3 years’business experience.
- ITR of the last two years / Proof of business.
In case of the applicant not satisfying above mentioned criteria, a co-applicant satisfying the criteria can be added. Additionally, do not neglect your CIBIL or Credit score as it plays a key role in approval of your two-wheeler loan application.
Interest Rates
The rate of interest on your two-wheeler loan is the crucial deciding factor in the amount of money you will need to set aside each month towards loan repayment. So, it is vital to choose a lender offering the most lucrative interest rates out there. Do not make hasty decisions and zero-in on the first lending authority you find. Instead, compare the interest rates offered by different banks and then, conclude.
Documents Required
Lenderswant to convince themselves of your creditworthiness as a borrower and yourability for future loan repayment, and for this, you will be asked to furnish afew essential documents depending upon whether you’re a salaried individual ora self-employed individual. This could include basic documents such as –
- KYC documents
- Income Proof documents / Proof of business
- Bank statement for 6 months
*even customers without 6 months banking history can be funded; however, LTV’s will be restricted
Check with the bank before you proceed
Repayment Plan
Withouta solid repayment plan in place, you will find yourself staring right into anabyss of defaulted payments and major hassles down the road. So, take actionfrom the very beginning! It all starts with making the right choice of loantenure. Do not stretch your loan for too long in a bid to reduce your monthly EMIs.Your loan tenure should be decided after taking your monthly income intoconsideration. If you can afford to pay off your loan early, then do so by allmeans since it is always better to close the loan early than too late.
Once done, make it a discipline to set aside your monthly EMI at the beginning of the month and work your other monthly expenses around it. Opt for automatic payments with your bank; such steps thin out your chances of defaulting on a monthly EMI payment.
Last Few Words
The bottom line is that a two-wheeler loan comes with many benefits – besides giving you the independence of commuting as and when you please, it enables you to meet emergency situations with ease. Plus, due to easy EMI options, repaying your two-wheeler loan is easier than ever – a little planning goes a long way! Looking for your ideal two-wheeler loan? Get in touch with us for customized two-wheeler loan details! What you can expect is attractive interest rates, flexible loan tenure of up to 36 months, quick loan processing, and easy and hassle-free documentation.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
