Get a two-wheeler loan easily – Here is how!
This country’s urban middle-class population or the fact that two-wheelers are the most affordable mode of personal transportation may be to blame for the burgeoning motor sector.
We have some excellent news for you if you’ve been considering putting your aspirations of having a scooter or bike on hold simply because you don’t appear to have the necessary income or would want to save your money for emergencies. With the aid of outside funding in the form of a two-wheeler loan, you may accomplish your ambitions of having a personal two-wheeler vehicle!
Why should you apply for a two-wheeler loan?
Two-wheeler loans are secure and reasonably priced:
The two-wheeler loans available on the Indian marketplace are a fair and safe way for you to obtain the two-wheeler of your dreams because they are governed by official and RBI criteria.
It has high market value:
In comparison to vehicles, two-wheelers have a higher long-term market value, so after your debt repayments are complete, you may start thinking about a new vehicle.
It is more affordable:
The majority of customers belong to a group of people who cannot afford to acquire a car unless they are permitted to pay in installments. Borrowers who finance two-wheelers can afford to make their EMI payments. Additionally, they require significantly less maintenance than four-wheelers do.
You Get to Set Aside Your Money for Emergencies:
By applying for a two-wheeler loan as opposed to spending your savings to buy a car, you free up your current funds. You may save money away from both personal costs and unplanned bills.
You can also utilize the available funds to invest in the assets of your choosing, including stocks, mutual fund schemes, marketable securities, life insurance, as well as other assets.
How are interest rates on two-wheeler loans determined?
The sort of company you are borrowing from will affect the 2-wheeler loan interest rate. The loan interest rates charged by banks, NBFCs, and different internet lenders range from 8% to 18%. Your two-wheeler loan’s interest rate will vary depending on several factors, including:
- Income declaration
- Your credit rating.
- Duration of your loan
- Financial obligations that already exist
- Your choice of two-wheeler and the lending institution
How can you get two-wheeler loans with the lowest interest rates?
When buying a two-wheeler, most Indians focus on two factors:
- The mileage of the vehicle
- The interest rates on two-wheeler loans.
The likelihood of choosing the vehicle increases with miles. In contrast, the likelihood that we will choose the loan offer increases with a lower interest rate.
However, it’s crucial to focus on both your EMI and the 2-wheeler loan interest rate you’re being provided in order to make the most from your two-wheeler loan. You will be making monthly payments known as EMIs.
Since rates of interest are compounding monthly, you could benefit more from a loan with a higher interest rate for a shorter time than from one with a lower interest rate for a longer term. Finding the appropriate EMI for the given duration and interest rate is important.
Calculation of two-wheeler loan interest rate
The original amount of the loan and the time it takes before it matures are used to calculate your EMIs. If you’re doing it manually, you may figure out your EMI using the method below:
EMI = [P x R x (1+R) N] /[(1+R) ^N-1]
However, there are online calculators for two-wheeler loans accessible in India that make it simple to calculate and evaluate EMIs versus tenures as well as the total 2-wheeler loan interest rate you’re you would pay for different tenures.
When it comes to the interest payment for a two-wheeler loan, making sure that your financial situation is sound in terms of repayment and that you have a steady and solid net income will assist you to obtain your two-wheeler loan at a low rate of interest.
Application Process for a Two-Wheeler Loan:
- Decide on a lender: Before choosing a lending institution for your two-wheeler loan, whether online or offline, take into account elements like processing fees, interest rates, plan advantages, coverage, customer service, and other pertinent considerations.
- Check loan eligibility: Most digital lending platforms determine your two-wheeler loan eligibility entirely on their own, which makes the procedure much simpler. Usually, all you have to do is give the requested information.
- Application: for the majority of lending institutions, the two-wheeler loan application procedure may be finished totally online.
- Documentation: finally, you’ll normally need to present any or all of the following documents to submit your two-wheeler loan application:
- KYC records: Proofs of identity and address
- Income proof, such as a bank statement or pay stub.
- A single passport-sized picture
Eligibility criteria for applying for a two-wheeler loan
- Indian citizens who are older than 18 years.
- Salaried: employed for at least a year, with a minimum of six months in the present position.
- Self-employed/ freelance professionals should have been operating for at least a year.
Many of us often dither before applying for a loan due to difficult and drawn-out application and disbursal processes, higher rates of interest processing costs, etc. However, requesting a Hero Fincorp Two-Wheeler Loan is a quick and simple process. Hero Fincorp established the idea of MMI or Meri Monthly Instalment to make two-wheeler loans affordable and to make your repayment process easier.
You are free to choose the number of monthly installments under this arrangement at your leisure. The length of the loan and the 2-wheeler loan interest rate are the two main determinants of the monthly payment amount. MMI allows you the option to choose an installment amount you can pay, and the duration is established subsequently, in contrast to the notion of EMI, where the rate of interest and the length of the loan is evaluated first.