There’s a certain way to apply for your two wheeler loan. Keep the following facts in mind when doing so.
Since they are accessible and relatively low maintenance, two wheelers are popular for personal transportation. Applying for a two wheelers loan, the entire process of purchasing and maintaining two wheelers is incredibly convenient! You may want to take out a two wheeler loan for the following reasons:
The first and most important benefit of a two wheelers loan is that it is easy to obtain and repay. There aren’t any hidden charges and the interest rates are affordable. With a Bajaj Finserv two wheeler loan, you can choose a convenient repayment tenor without worrying about your finances.
Apart from the two wheeler loans’ low-interest rates, they can also improve your credit score, which measures your ability to repay your loans on time. Besides confirming your credibility, it increases your chances of getting other loans approved.
It’s now a simple task to afford the bike you want without having to deplete your savings. Many lenders offer zero down payments on certain two wheeler models. Consider your options before applying for a two wheeler loan.
If you are getting a loan for a two wheeler, what should you check?
It is important to keep a few things in mind and to check beforehand to ensure that everything goes smoothly:
- Find out which interest rates are the best by conducting ample
- Check the eligibility requirements before beginning the
- Find out how much you will have to set aside every month by using the EMI
- Lastly, carefully read through and understand all terms and
What would be the ideal tenor if you were to take out a two wheeler loan?
The decision is very personal, based on the individual’s financial capacity, income stability, fixed/unavoidable expenses, and financial obligations. A loan should never be used to buy
anything since the interest charged is usually higher than other means of gaining interest on the same amount.
In addition, borrowing to buy depreciating assets is a bad idea from an accounting and finance planning perspective – but in reality, most people save up for something without a loan for several years, so easier access to loans has also contributed to higher inflation.
However – after allocating all fixed expenses and obligations first, you need to determine how much spendable income you have left for a two wheeler loan. These include groceries, electricity bills, rent and home loan EMI, children’s education expenses, medical bills, apartment maintenance charges, insurance premiums, investments, etc.
Do you need a down payment?
A lender will always maintain a certain margin before disbursing loans if you own a two wheeler. Regarding funds, you can expect the lender to offer you 85 to 90% of the vehicle’s value at a margin rate of 5 to 15%.
The zero down payment in two wheeler loans means that you don’t have to make any financial contribution while taking out loans for two wheelers. You won’t have too many worries over liquid funds or other cash to cover any other payments during the purchase because the lender will finance the entire cost of the vehicle.
How do banks evaluate bike loan applications?
However, the biggest advantage of bike loans is that collateral isn’t required. However, lenders check certain aspects of the loan application to minimize the risk factor involved, so the process is made very easy on one hand, but on the other, it’s made very easy. Among them are the following:
● Credit Score –
An assessment of your financial history is based on three digits. Ideally, a credit score of around 750 is required to qualify for a two wheeler loan and get a good interest rate on bike loan.
● Income –
Also, lenders look at your fixed expenses and monthly income. A loan repayment capacity assessment determines whether you can repay the loan.
● Employment –
Employers check the number of organizations you have worked for and the years you have worked for. This is because lenders view self-employed people and those who change jobs frequently as higher risks.