Lucrative financing, interest rates slashing, and festival offers are doing just so perfect for making two wheeler loans more and more popular in the country.
Are you really upset with the uncertain availability of public transport for reaching your office? Or… are you planning to gift your eighteen year old an exclusive bike on his birthday? With the growing importance of two wheelers on Indian roads, reputed financial service companies are also doing their level best to cater to this growing need of individual commuters.
Let us find more about the essentials associated with a two wheeler loan:
What is a Two Wheeler Loan?
A two wheeler loan can be acquired while buying a scooter or bike in the form of both secured and unsecured loan. If you opt for a secured loan, then, you need to pledge a collateral security with the lender of your choice. The interest rate charged for a secured loan is normally less than that of an unsecured loan. On the other hand, in case of an unsecured loan, 10-15% of the two wheeler’s value is required to be paid as down payment to the lender during the time of purchase. In this case, the rates of interest would also be higher due to the loan’s unsecured nature.
Eligibility Criteria for Acquiring a Two Wheeler Loan in India
- The age of the salaried employee has to be a minimum of 21 years while applying for the loan; and his or her age has to be a maximum of 60 years when the tenure of the loan ends. In the case of a self employed person, the minimum age has to be 21 years and maximum age 65 years.
- The gross income per annum of a salaried employee has to be in the range of Rs. 54000 to Rs. 84000 in the metro cities, along with Pune and Bengaluru. For the rest of the cities in India, the respective income can be within the range of Rs. 40000 to Rs. 42000 per annum. In case of self employed individuals, the gross yearly income has to be equal to or more than Rs. 72000.
- The borrower must reside for at least 1 year at the present address provided in the application, and must have a phone at his or her residence or office.
- The individual should be working for at least a period of 1 year prior to applying for the loan.
Essential Features of a Two Wheeler Loan
- The required documents for acquiring the loan are identity proof and residence proof.
- The income proof for a salaried employee can be inclusive of the most recent salary slip, Form 16, and a bank statement for the last six months. For a self employed individual, the IT returns for the last 2 years, and the last six months bank statement will serve the purpose well.
- The processing fee for the loan is charged up to 1-2% of the loan amount.
- The fee for documentation can be charged at 2% of the loan amount.
- In case of an unsecured loan, the down payment of around 10-15% of the two wheeler cost has to be paid at the time of purchase.
- The loan tenure can be a period of 1-3 years, and sometimes, 5 years too.
- A loan amount of maximum 1 lakh of rupees, or 90% of the vehicle’s cost, can be financed.
- Prepayment charges can amount to 5-6% of the outstanding amount of principal within 6 to 12 months.
Here, we have brought to you all the essential information regarding a two wheeler loan. Go through them and then opt for easy processing of the same.
Ride away; soon!