Two Wheeler Loan Maximum Tenure

Two Wheeler Loan Maximum Tenure

Two-wheeler financing allows customers to buy a bike or scooter at a low monthly EMI. EMIs (Equated Monthly Instalments) are a low-cost way to repay a two-wheeler loan. The loan can be pre-closed by paying the complete balance plus specific pre-termination fees, and the EMI period can range from one to four years.

Eligibility for a Two-Wheeler Loan

1. At the time of issuance maturity, the loan applicant's age must be at least 18 years and not older than 65 years.
2. To demonstrate residential stability, applicants must have lived in that house for at least a year.
3. Applicants must have worked in a stable position for at least a year or be self-employed with two years of IT returns.
4. The applicant must have the required CIBIL™ score from the credit bureaus.
5. Applicants must have a permanent phone number and have KYC and other relevant documentation.

Why Should You Get a Loan for a Two-wheeler?

A two-wheeler loan is the best way to handle your funds. You can take up to 100% of the total on-road price of your two-wheeler without putting up any collateral. You can manage your repayment depending on your requirements, thanks to low interest rates and extended loan terms.

You need a steady income and a decent credit score to avail of a two-wheeler loan.

Documents Required for a Two-Wheeler Loan

Here is a list of the necessary documents for a two-wheeler loan.

1. Aadhaar Card, Passport, PAN Card, Driving Licence, or Electoral Voter Identity Card are all acceptable forms of identification (must have one out of these)
2. Aadhaar Card, Passport, PAN Card, Driving Licence, Most Recent Electricity Bill, Most Recent Phone Bill, Most Recent Bank Passbook displaying the current address, Property Documents, or Water Bill (must have one out of these)

Additional Documents Required for Salaried and Self-Employed Persons:

1. Letter of employment or offer
2. Pay stubs over the previous two months
3. Self-employed: Bank statement from the last six months/Form 16
4. Last three years' ITRs (Income Tax Returns).
5. Bank statements from the previous six months
6. Returns on sales taxes
7. TDS Certificate Information

Principal and Tenure

Many consumers only examine the EMI amount when considering whether or not to take out a loan. On the other hand, smarter people prefer to save money on interest and lower the total amount of the loan.

The principal and tenure are the most critical factors to consider. The principal is the overall loan amount, and the tenure is the period during which you will pay off the loan. Let's look at the maximum tenure for a bike loan.

A bike loan tenure is usually between one and five years. Choosing the right two-wheeler loan tenure can save you a lot of money.

Your EMI will be hefty if you obtain a loan for a year, but you'll only incur Rs.5,499 in interest. Your EMI will be cut in half if you merely extend the term by one year, but you will have to pay back double the interest.

If you choose a five-year term, the EMI woold be less than one-fourth of the original amount, but you will end up incurring Rs. 27,482 in interest.

You can use a two-wheeler loan maximum tenure EMI calculator to conduct your own calculations. Simply enter your loan amount, term, and interest rate, then click 'Submit.' This is essential in understanding the loan amount to take out and for how long.

Here's how to pick the best bike loan maximum tenure period:

1. 1-year term - This is the best option for buyers who can manage to pay a bigger EMI at a lower interest rate. The buyer considers the ownership costs in this case. Buyers with a steady income and who prefer to own the vehicle right away can benefit from this.
2. 2-year tenure - This duration is the most balanced. Compared to the three- or four-year tenure, the EMI amount and the interest charges here are considered more suitable.
3. 3-year tenure - If you want to maximise your monthly cash flow by paying smaller EMIs at a higher interest rate, then this is the tenure for you. But why is there such a high-interest rate on longer-term loans? Because the longer the tenure, the higher the acquisition cost. Some moneylenders may demand a higher interest rate to compensate for the risks.