5 Planning to buy a two-wheeler? It would be best to decide on a few things before owning your dream vehicle. For example, you may have a vague idea of the price, maintenance cost, mileage, and loan amount; you will want to check the eligibility for a two-wheeler loan too.
Two-wheeler loans are popular now thanks to the increase in the demand for these vehicles, especially since most people still see four-wheelers as a luxury.
But unless you get clarity on factors relating to this loan, your buying experience will not be a smooth affair. Here is a guide that will clarify your other confusions regarding two-wheeler loans.
5 Confusions That Needs To Be Cleared Before Opting For A Two Wheeler Loan
1. Are The Interest Rates Too High?
Though four-wheelers may be considered a luxury item, two-wheelers have become a necessity for most households. Therefore, the interest rates are fixed keeping in mind the affordability of the working-class people.
However, the interest rates vary from one lender to the other. It would be best to check out the two wheeler loan EMI calculator for more clarity on this.
2. Is A Two-Wheeler Loan Secured Or Unsecured?
Both secured and unsecured loans are available for two-wheelers. It is entirely on the borrower’s wish which one they are willing to choose. In the case of an unsecured loan, the two wheeler loan eligibility includes collateral security.
However, the interest rates are higher in comparison to secured loans. Thus, it leads to higher EMI. The opposite is the case for secured loans.
3. Is A Co-Applicant Compulsory?
Though in normal cases, a co-applicant is not necessary to apply for a two-wheeler loan.
However, if the credibility profile of the borrower is weak, i.e. bad CIBIL score or unstable income, a co-applicant would be useful in raising the chances of getting the loan sanctioned as the co-applicant acts as a guarantee for the principal debtor.
4. How Is The Credibility Score Determined?
The credibility score of any customer is determined by considering the number of loans the person has taken, the total amount borrowed, the number of timely payments made, and the number of payments failed or missed.
The borrower’s credit is ascertained for their next loan to be sanctioned based on these important factors.
Government Subsidy On E-Vehicle
If you have decided to purchase an electric vehicle, you can avail yourself of the subsidy benefit provided by the government. The amount varies from state to state.
The subsidy is determined by the battery capacity of the two-wheeler for which the loan is being taken.
Other Factors To Keep In Mind
Apart from the points discussed above, there are other things that you need to keep in mind. They are:
- Compare options and find the best for you.
- Select the tenure of your loan carefully.
- Compare and look for economically reasonable interest rates.
- Go through the terms and conditions property.
- If you are going to take a two-wheeler loan, you should go to the two wheeler loan EMI calculator at your lender’s website to check the details of the loan amount and its corresponding EMI.
Documents Required For A Two Wheeler Loan
Here is a list of all the documents you will need to be eligible for a two-wheeler loan:
Basic Documents Required:
- KYC Documents: PAN Card, Voter ID Card, Aadhar Card, Passport
- Address proof: Passport, Utility bills
- Other documents: Cancelled cheque, Passport size photos
Income Proof Of Salaried And Self-Employed Individuals:
- For salaried individuals: Salary slips, latest translation statement from your financial institution, ITR.
- For self-employed individuals: Income certificate, up-to-date translation statement from your financial institution, ITR.
Conclusion
When one takes a two-wheeler loan, they are trying to partially support the immediate financial burden they would otherwise have faced.
So, make sure that there lies no more confusion related to the loan. Make sure to have all your documents ready and do your research before making a final decision.