Two-wheelers are undoubtedly the choice of commute for most Indians. In India, taking a loan to finance one’s two-wheeler purchase has become relatively simple. One can obtain the best possible interest rate on the scooter loan by following the tips listed in the article. Between 2017–18, approximately 20 million scooters were sold in India. That is double the amount of two-wheelers produced in 2011–12, although they contributed just 11.77 million.
Two-wheeler vehicles include mopeds, scooters, and motorcycles and have emerged as the chosen mode of transportation through non-metro, area, and village lines. It is mostly attributed to growing wages, a shortage of high-quality public transport, higher expectations, and simple two-wheeler finance connectivity. It can be postulated that the bulk of buyers take loans from banks and non-bank financial entities to finance their scooter dream purchase. If you are one of them too, here are a few things to consider before applying for a loan of 2 wheelers:
A detailed review of the interest rates paid by multiple borrowers. Due to web aggregators that can be achieved conveniently today. You need to input the correct information, and you’ll get a list of interest rates paid by several borrowers automatically. When you have a favorite lender shortlisted, note that you will bargain more on the interest rate. It will help you to select the right loan for a scooter or a used car loan. Alternatively, you may also reach out to a partner you already have a commercial partnership with. You might have recently taken out loans, or they may handle your savings. You should negotiate your 2 wheeler loan financing criteria with your partnership manager and contact the branch manager to get the best available prices.
Lenders wind up giving discounts galore during holiday seasons. You may also obtain more incentives away from excellent interest rates. A leading two-wheeler maker, for example, not only provided a Rs 3000 discount on all of its models in 2018 but also joined up with a leading payment portal to give another Rs 4000 refund. Perhaps the seller you choose to purchase your two-wheeler from already has an exclusive partnership with a lender who offers an excellent discount on the prevailing interest rates for a two-wheeler loan.
You may be inclined to go for a high-end scooter, and therefore, could receive a sum higher than previously projected two-wheeler financing. You should do so while expecting that next year you will get a percentage pay increase. And if the income increase is smaller than you anticipated or worse, then there is no increase at all? You ‘d find yourself unable to pay the EMIs back, so you may not be willing to repay the two-wheeler loan. Compared to your willingness to repay quickly, investing is also recommendable.
Criteria for Qualifying for two Wheeler Loans-
- Should be 21 years old at the time of registration (or 18 years with a co-applicant)
- Of loan duration less than or equivalent to 65 years
- Must have lived at least one year in the same town
- Required decent jobs for Salaried & Self employed for one year.
- Mobile Postpaid Link
Documents Needed for a Two Wheeler Loan-
- ID Proof: Passport / Photo Credit Card / Pan Card / Driver’s ID / Aadhaar Card / Photo Identification Card issued by Central / State Departments, PSU.
- Two early photos on passport scale
- Address proof: ID / Utility Bill / Aadhaar card / Bank deposit or investment bank account statement via Post Office License / Voter. Digital certificates can only be provided by PSU, Pvt Sector, or MNC Banks. / Land or local tax receipt; evidence of address is appropriate in the name of the applicant’s spouse or parents
- Salary slips last three months / Form 16 / Revised ITR.
- Bank statements from the last three months are compulsory.
Some lenders can provide advance payment incentives, or enforce a penalty if you pre-pay. Watch out for the same as a loan is being finalized. Using these tips, when engaging with lenders, will help you to obtain the best two-wheeler loan. But make sure you have a comprehensive installment program in effect too. It would have a beneficial impact on the credit score, which is crucial to obtaining various forms of loans.