Ride home with the new two-wheeler of your choice by availing Two Wheeler Loan from trusted banks. Make your buying of a bike or scooter easier with attractive interest rates. Know What is meant by a Two Wheeler Loan, Eligibility Criteria to be met for buying one, Documents Required for a Two Wheeler Loan, Online Application Process of Two Wheeler Loan in the later modules.
- What is a Two Wheeler Loan?
- Two Wheeler Loan Eligibility
- Documents Needed for a Two Wheeler Loan
- How to Choose Right Lender for Two Wheeler Loan?
- How to Apply for a Two Wheeler Loan Online?
- How to Calculate Two Wheeler Loan EMI?
- Two Wheeler Loan Interest Rates of Various Banks
- Benefits of Applying for a Two Wheeler Loan
- Tips for Two Wheeler Loan Application
- FAQs on Two Wheeler Loan
What is a Two Wheeler Loan?
A Two-Wheeler Loan can be borrowed from a lender to purchase a variety of two-wheelers such as commuter bikes, premium motorcycles, scooters, etc. Your Repayment Capacity decides the loan tenure, interest rates, and other terms, etc.
Two Wheeler Loan Eligibility
Each lender has their own set of eligibility criteria that you need to meet before applying for a Two Wheeler Loan. We have mentioned a few common eligibility criteria guidelines for your idea. They are as below
| Requirements | Salaried Individuals | Self-employed individuals |
|---|---|---|
| Age | Minimum – 21 years at the time of application Maximum – 65 to 70 years at the end of the loan tenure | Minimum – 21 years at the time of application Maximum – 65 to 70 years at the end of the loan tenure |
| Monthly income | Rs.7,000 | Rs.6,000 |
| Credit score | Above 750 | Above 750 |
| Loan amount | Up to 100% of the value of the vehicle | Up to 100% of the value of the vehicle |
| Residential stability | Must be staying at the current address for at least 1 year | Must be staying at the current address for at least 1 year |
| Work experience | At least 1 year | At least 1 year |
*Note: Eligibility Criteria can be different for different lenders. Please confirm with the lender before applying for a two wheeler loan.*
Documents Needed for a Two Wheeler Loan
| Particulars | Salaried Individuals | Self-employed individuals |
|---|---|---|
| Identity Proof | PAN card, voter’s ID, passport, driving license | PAN card, voter’s ID, passport, driving license |
| Address Proof | Utility bills, passport, etc. | Utility bills, passport, etc. |
| Income Proof | Salary slips, IT returns, bank statements | Bank statements, IT returns, audited financial statements |
How to Choose Right Lender for Two Wheeler Loan?
There are many lenders out there in the market who provide Two Wheeler Loan. Before applying for a Two Wheeler Loan do the groundwork and decide on the right lender for you.
- Compare Interest Rates offered on Two Wheeler Loan by taking help of Lender’s Websites or Loan Aggregators. However, the interest rates differ depending on your income, price of two-wheeler, market variations.
- Also, Enquire about other details like Processing Fees, Insurance Charges, etc.
- Confirm whether you will get the required loan amount from the lender or not through the Two Wheeler Loan Eligibility Calculator.
- Know the turnaround time so that you will know how quickly you can get the loan.
- Learn the other factors like Loan Repayment Tenure, Pre-Payment Penalty Charges, Customer Service Offered, etc.
- Go through the terms and conditions in the Loan Agreement Carefully as it can be a crucial document in case of any dispute.
Recommended Posts:
How to Apply for a Two Wheeler Loan Online?
Follow the simple steps listed below to apply for a two-wheeler loan and they are as such
- The first and foremost step is to fill in the basic details in the application form.
- Then share your personal and financial details.
- Submit the form and Know the loan amount you are eligible for.
- After verification of documents, your loan will get approved.
How to Calculate Two Wheeler Loan EMI?
You can use Two Wheeler Loan EMI Calculator to make a final decision on the purchase of the two-wheeler of your choice. The Calculator Tool will give you the EMI Calculation Formula for Two Wheeler Loan and gives you the step by step calculations for better understanding.
Two Wheeler Loan Interest Rates of Various Banks
| TWL Banks | Interest Rate | Loan Amount | Processing Fees |
|---|---|---|---|
| State Bank of India | 16.25% p.a. to 18.00% p.a. | Rs.30,000 to Rs.2.50 lakh | 2% of the loan amount + GST |
| Bank of India | 7.35% to 8.55% | Up to Rs.50 lakh | Rs.500 to Rs.10,000 |
| HDFC Bank | 20.90 % | Rs.20,000 to Rs.2 lakh | 2.5% of the loan amount |
| Punjab National Bank | 9.3% (RLLR + 2.75%) | Up to Rs.1.50 lakh | Rs.500 to Rs.1,000 |
| Andhra Bank | 9.90% to 10.00% | Up to Rs.10 lakh | At the discretion of the bank |
| Union Bank of India | 9.90% to 10.00% | Up to Rs.10 lakh | NIL |
| Corporation Bank | 9.90% to 10.00% | Up to Rs.10 lakh | At the discretion of the bank |
| Axis Bank | 10.80% – 28.30% | Rs.25,001 onwards | 2.5% of the loan amount |
*Note: All the Interest Rates provided are given as far as our knowledge is concerned. We advise you to go through the terms and conditions of the bank once before applying for a loan.*
Benefits of Applying for a Two Wheeler Loan
There are several advantages of applying for a two-wheeler loan and we have listed some of them for your reference. They are as under
- Avail the Funds you need to buy your favorite bike or superbikes.
- You can use a co-applicant or guarantor to get the money you need.
- You can avail two-wheeler loans at affordable interest rates.
- You can enjoy a wide spectrum of loan repayment options.
- Repay loans in affordable EMIs.
- Pay EMIs on time to build credit history.
Tips for Two Wheeler Loan Application
Check out some of the tips to keep in mind while applying for a Two Wheeler Loan and they are as under
- Assess your needs carefully and determine how much loan amount you need exactly for your bike. Don’t overapply for the loan.
- After deciding on how much loan amount you need check the loan options that you are eligible for.
- Check for your credit score as low ratings can be the reason for loan rejection. Before applying for the Two Wheeler loan itself try to improve your Credit Score.
- If your credit score is not up to the mark look for a guarantor or co-applicant who is having a good credit score so that you can get the loan amount you desire for.
- Carefully fill the loan application fully as an incomplete application can result in loan rejection.
- Â Submit all the required documents.
- Try applying for a loan with an existing lender as you can get a loan though you don’t meet all expectations.
FAQs on Two Wheeler Loan
1. What is meant by a Two Wheeler Loan?
A two-wheeler loan helps you to buy a bike of your choice at low-interest rates with monthly EMIs without hurting your budget.
2. What are the Advantages of a Two Wheeler Loan?
- You can get the funds you want
- Affordable Interest Rates
- You can Repay Loan in Affordable EMIs
- You can use a co-applicant or guarantor to avail the money you want.
3. Is Age an Eligibility Factor to avail the Two Wheeler Loan?
Yes, Age is an Eligibility Factor to avail the Two Wheeler Loan and you need to be between the age group of 21-70 years.