Offers
Rates
V-KYC
Debit Card Related
Credit Card Related
SA Welcome Kit 
Manage Mandate(s)
Get Mini Statement
categories
Bloggers
Blog collection
Press Release
All You Need to Know About Two Wheeler Loans
Posted on Wednesday, July 15th, 2020 | By IndusInd Bank
Two wheelers are great for manoeuvring through congested city streets. If you have your eyes set on a scooter or motorcycle but do not wish to spend all your savings buying it, choose a two wheeler loan.
Why Take a Two-Wheeler Loan
Two wheeler loans offered by banks and financial institutions are an effective way to finance your purchase without spending a fortune. Since you only have to pay fixed Equated Monthly Installments (EMI) to the lender, most of your cash will be free for personal use.
Benefits of a Two Wheeler Loan
Most two-wheeler loans are easy to repay and can boost your creditworthiness if you are a first-time borrower. A good credit score comes in handy when looking for bigger loans in the future. Since you have to pay EMIs on your two-wheeler loan, you will also learn to manage your finances effectively. Moreover, if you are timely with your repayments, this will further boost your credit score. Budgetary concerns may keep you from buying a two-wheeler of your choice. With a two wheeler loan however, you are easily able to afford the vehicle of your choice without having to worry about the finances.
Basic Covenants You Should Know
- To apply for a two-wheeler loan, you need the following documents:
- Proof of Identity (AADHAR card, Passport, PAN Card etc.)
- Proof of Address (Utility bills, AADHAR card, Passport etc.)
- Income Proof or Proof of Business
- Bank Account statements of the past 3-6 months.
- Passport-sized photographs
- Completed Paper/Online Loan Application
- Both salaried and self-employed individuals qualify for a two wheeler loan. Check your two wheeler loan eligibility for a loan with IndusInd Bank.
- Two wheeler loan interest rates depend on several factors like your income, age and chosen vehicle type and model. These vary from lender to lender. At IndusInd Bank, we offer attractive interest rates on our two-wheeler loans.
- Repayment tenures for most two wheeler loans are flexible and can be adjusted to suit your cash flow and income. Stay away from lenders who do not offer customised repayment tenures.
- Two wheeler loans do not require any collateral or security because your vehicle is hypothecated in the name of the lender until you repay the entire amount, and the interest and fees associated with the loan. In case you fail to repay, the lending institution can seize your vehicle.
How to Choose the Right Lender
Selecting an appropriatelender is extremely important for anyone who wants a hassle-free loan. Whilechoosing a lender, keep the following in mind:
- Choose a lender that offers competitive interest rates. A two wheeler loan with an exorbitant interest rate is financially damaging, while ones with ultra-low interest rates usually have hidden costs. Before opting for a lender, clarify all the terms related to interest rates and additional loan processing, foreclosure and pre-payment fees
- Choose lending institutions that allow you to apply for two-wheeler loans online. This will save time and prevent you from spending long hours completing paperwork
- Opt for lenders that offer quick disbursals, instant loan approvals, simple documentation and flexible repayment tenure. Also, look for ones that provide processing fee discounts or special discounts on interest rates or processing fees
At IndusInd Bank, we make applying for and securing a two wheeler loan extremely convenient. We offer discounts on loan processing fees to our existing customers. Our disbursal process is quick and we do not ask for complex documentation. Get in touch with us today!
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.
