Things you should do & avoid in a two-wheeler loan

Be it a bike or a scooter, with the growing demand for two-wheelers in rural and semi-urban areas, the two-wheeler industry has a ripple in growth in this sector. With the estimation of Rs.8,000-Rs.9,000 crores or over in size, this industry spreads abundant opportunities for financing companies to generate more clients by offering the two-wheeler loan.

However, there was significantly limited awareness of loans/financing in the two-wheeler industry in the last few decades. But with the elevating penetration of lender organisations countrywide, the financing option has become a potential way to own a two-wheeler promptly and conveniently.

However, to obtain a two-wheeler of your choice via financing, you must pass the entire application process, including eligibility criteria, submission of required documents, etc.

Eligibility criteria for two-wheeler finance:

• The borrower must be a minimum of 18 years and a maximum of 65 years.
• Should be employed for more than 1 year. In the case of self-employed, the applicant must present running business proof for 2 years.

These are two main parameters for applying two-wheeler finance. However, you can evaluate your qualification beforehand using the 2 wheeler EMI calculator.

Vital documents for two-wheeler finance:

No matter you want to purchase a bike or a scooter, you must present some mandatory documents to the lender. So, the financing company can verify your authenticity and profile worth and lend you money accordingly. However, your application may get sanctioned or face rejection depending on your document submission.

Following are some basic documents you’ll require to submit to the bank/financing organisation:

• Identity Proof (KYC)
• Address Proof
• Income Proof
• Passport size photographs

How can you apply for the loan?

While applying for the loan, you need to do some general homework to scout the market for various financing companies and banks’ offerings. Since different organisation holds diverse rules, regulations, terms and conditions for the respective two-wheeler loan scheme, you must pick the lender that suits your requirements.

However, the process is much easier and more transparent, and every borrower must pass the eligibility parameters to avail of the offering. Besides, being an applicant, you have to provide the lender with the mandated documents while submitting the application form. Once you submit all necessary papers, the processing will be completed within 2 to 3 business days. And the approval won’t take much time afterwards.

Things to do:

• You should research thoroughly and tick all the boxes in the eligibility section before you apply for the loan.
• Always do your homework to understand and evaluate the market better. So, you can settle with the best deal.
• Read the application form entirely and don’t skip any relevant field, which can higher the risk of rejection. Even the tiniest mistake can cost your time and create unnecessary aggravations.
• Compare all available ROIs and secure the most promising one.
• Ask loan agents for further assistance if you face any issues while applying for the loan.
• Also, calculate your potential EMIs beforehand using a free 2 wheeler EMI calculator and plan your financial state wisely and carefully.

Things to sidestep:

• Don’t ever apply with different lenders simultaneously. If any lender looks down on multiple enquiries, it’ll increase the possibility of your application refusal.
• To dodge any financial burden or surprising charges, read all documents provided by the lender carefully; Check EMI value, interest rate, tenure, any hidden costs, etc., before closing the deal.
• Only borrow the amount you’re able to repay without difficulty.
• Avoid default or delay EMI payments and be well-disciplined since it can influence your creditworthiness for future debts/loans.

Wrapping Up:

There are several renowned financing companies and banks offering exquisite deals on loans. However, it’s highly advisable to settle with a trustworthy financial institution for further convenience. Besides, try to connect with your partner bank to avail a two-wheeler loan at a low ROI, flexible tenure and EMI rates. Also, you can apply for some available schemes.