As a result of Covid-19, we have learned to value the things in life. Due to the complete lockdown and restrictions on public transportation, mobility was difficult. During this period, people recognised how important it is to own a personal vehicle.
With the average Indian salary and increased financial distress due to COVID, owning a motorcycle or two-wheeler is only a dream.
Have you, too, been tempted by the newly released motorbike and do not have the budget to invest? Looking for ways to arrange for funds?
It would be wise to begin by looking into two-wheeler loans.
The ease of obtaining bike loans makes it possible to buy your favourite ride without worrying about covering the entire expense all at once.
If you are interested in obtaining a two-wheeler loan, here are a few things to consider before applying for one:
1. Assess your creditworthiness
It's recommended that you check your credit score before applying for two-wheeler loans, especially if your credit score isn't stellar. Additionally, high credit scores can result in reduced two-wheeler loan interest rates, which makes it even more imperative to assess your credit.
Most two-wheeler loans in India are unsecured, so one of the most critical factors that go into determining your credit score is your credit score based on four main factors:
- How many loans have you taken in the past
- How much have you borrowed so far
- Whether you have made all your payments on time
- Your total number of missed payments
The Indian credit rating system gives each borrower a score out of 900. Two-wheeler loans can usually be approved online by most lenders. Nevertheless, you must have an established credit history to qualify for this.
Where can I get credit scores? Your credit history score is available from several different credit bureaus like CIBIL™ and online lending marketplaces.
2. Eligibility Check
You can now apply for an online bike loan at your convenience. Before obtaining funds for your scooty finance, it is necessary to ensure that you meet the eligibility criteria and lenders have different eligibility criteria for two-wheeler loans.
Shriram Finance Two Wheeler Loans guarantees the lowest two-wheeler interest rates. Eligibility criteria for bike loans are as follows:
- The minimum age for applying for a two-wheeler loan is 21 years.
- The maximum age for applying for a two-wheeler loan is 59 years.
- The applicant should be salaried or self-employed.
- Minimum work experience for salaried is one year with a minimum monthly income of Rs.12,000.
- For self-employed individuals, a minimum work experience requirement exists.
- The applicant's current address should be in use for at least one year.
It is necessary to ensure that you do not apply for loans you don't qualify for, or else your application will be rejected automatically.
3. Know the maximum amount you are eligible to borrow
Generally, banks provide loans according to their standards. Two-wheeler loans depend primarily on the price of your motorbike, as well as your creditworthiness.
It is wise not to ask for more funding than you need to purchase a bike, and always calculate the amount of funding you require according to your needs.
If your bike loan application is for a higher amount, your lender is more likely to reject the application.
Shriram Finance Two Wheeler Loan offers a cover up to 100 percent of the motorcycle price if you qualify. Also, we offer the lowest two-wheeler loan interest rates possible and zero down payment bike loans.
4. Loan process
Two-wheeler loan applications can now be processed and applied for online, contrary to the past. Getting two-wheeler finance is hassle-free and straightforward if you qualify for a bike loan.
You have to navigate your lender's bike loan application page and fill in your financial details and personal information. Further, you must provide information on the vehicle, such as the RTO location, the dealer's name, and the on-road price.
Along with the application form, you must submit the documents online.
The following is a list of required documents for a Two Wheeler Loan.
- Proof of identification: PAN card, voter ID, passport, driver's license.
- Proof of residence: Utility bills, passports, etc.
- Income Proof: Salary slips, Income tax returns, bank statements.
- Passport size photographs.
At Shriram Finance, two-wheeler loan online approval is instant. Once approved, your loan amount is disbursed within 24 hours.
5. Loan tenure
Deciding on your loan tenure is imperative as it influences your EMI. Additionally, the amount borrowed and the interest rates have a direct impact on the bike EMI. You can calculate your bike loan EMI using the EMI calculator available on the lender's website.
You will have a low EMI when you have a long tenure, but you will pay a high-interest rate. Conversely, you pay less interest when your EMI is higher. Thus, you need to make sure you pick the loan tenure carefully.
