Two Wheeler Loan – Auto Loan and Financing

Mistakes to Avoid with a Bike Loan

For the average individual in India, a motorcycle is an asset. A motorcycle is cheap to own and easy to ride. Furthermore, parking issues with a motorcycle are negligible.

However, whether one is buying a Bajaj 100cc bike or a Dominar 400, prices of motorcycles recently have skyrocketed.

This led to the situation where loans for motorcycles became the only solution for motorcycle buyers. In this context, it is best to remember to avoid the mistakes mentioned below with one’s bike loan.

Delay paying the EMIs

It is a mistake to delay paying the EMIs for one’s two-wheeler loan. Delayed EMI payments would not only rack up penalties but also hamper one’s credit history. If continued, delays can also lead to the instance where the lender repossesses the bike!

Not making a downpayment and applying for a large loan

It is a mistake to apply for a loan without making a downpayment. At the same time, it is also a mistake to borrow a large sum from a lender. In both cases, a borrower would have to bear steep interest rates and extremely steep EMIs.

Not borrowing from authorized lenders

It is a mistake to borrow money from unauthorised lenders. One must ensure that the lender they are borrowing from has the necessary credentials like permission from the RBI.

Not paying attention to the fine print of the loan document

It is a mistake to avoid reading the terms and conditions of the final loan document. In case one is having issues understanding any clause then the doubt should be clarified on-site. Otherwise, one might end up paying unnecessary charges.

For more details, consult a professional financial advisor.

Must Read: Top 5 Sports Bikes in India That You Should Know

3 Things to Consider Before Getting a Two-Wheeler Loan in India

Two Wheeler Loan

Indians and their love for motorcycles is no news.

However, gone are the days when one could buy a bike they like with cash. Motorcycle manufacturers have been increasing the prices of their respective line-ups every month. This led to the current situation where even an entry-level motorcycle costs more than INR 80, 000.

The price hikes also allowed loans for a two-wheeler to become a mainstream financial product from a niche financial product.

However, when one is applying for a motorcycle loan, one should keep the following things in mind.

It is best to stay away from 0 downpayment loans

0 downpayment loans allow buyers to take the bike they want home without paying a penny as a downpayment. The entire MSRP of the motorcycle will be borne by the lender. The downside of a 0 downpayment loan is that borrowers would have to bear steep interest rates on the borrowed sum. Furthermore, the EMIs for a 0 downpayment loan scheme will be steep as well.

It is best to borrow a small sum

Financial advisors often advise buyers to borrow not more than 20% from a lender while applying for a bike loan. The reason is simple. A small debt is within the borrower’s control. When a debt is small, the borrower is also able to keep their financial history as well as credit score red-flag free.

It is best to borrow when one’s credit score is high

Borrowers should apply for a loan for long-ride bikes when their credit score is above 750. A high credit score will allow a borrower to enjoy reasonable interest rates. Furthermore, the loan would also entail favourable clauses such as affordable EMIs.

To learn more, please consult a professional financial advisor.

Must Read: A complete list of Bajaj Auto’s entire Pulsar range for Indian riders

Why Bike Loan is The Best Option to Buy a Bike?

bike loan, Two Wheeler Loan

The spending capabilities of the average Indian have gone up in recent years. But still, Indians prefer to buy a bike and not a car. The reason is simple. A car costs more at the dealership than a bike. Then the costs of registering and insuring the vehicle are exorbitant as well. Furthermore, the fuel and maintenance costs of a car are otherworldly, to be honest. On top of these, cars cannot cut through traffic like a bike. Parking a car is a headache as well.

On the other hand, a bike costs less than a car. Bikes consume less fuel and cause less pollution. Bikes can cut through the traffic and allow the rider to reach their destination quickly. Parking a bike is way easier than parking a car. On top of these reasons, the maintenance, insurance and registration costs of a bike are affordable.

Then why do people apply for a bike loan when they want to buy a motorcycle?

In recent years, the year-on-year growth of the Indian motorcycle sector has been impressive. Demand for motorcycles has always been high across India but recently demand has surpassed supply. Bike brands ensured that they are not failing to monetize this growing demand for motorcycles. This is why motorcycle brands operating in India have hiked the prices of their motorcycles by several folds. The cost of even an entry-level commuter bike now costs more than INR. 80, 000.

Hence, the days of buying a bike with cash are long gone.

Furthermore, buying a bike through a loan entails a lot of benefits for the buyer. Some of those benefits are mentioned in the sections below.

A bike loan allows one to keep their emergency funds intact.
Bike loans entail low-interest rates. All one would have to do is use a Two wheeler loan EMI calculator before applying for a loan. In this way, they would be able to select the best principal + tenure + downpayment combination. The best principal + tenure + downpayment combination would entail low-interest rates.
A loan would also allow one to boost their CIBIL score and create a spotless credit history.

To learn more about the benefits of financing a bike, talk to the nearest professional financial advisor.

Must read: How To Calculate Two Wheeler Loan EMI?

Here is The Complete Guide to Getting a Two Wheeler Loan

Two Wheeler Loan

Most lenders in India approve motorcycle loans in a single business day. But there could be exceptions when an application can get rejected.

To keep such incidents at bay, two-wheeler loan applicants can follow the tips mentioned below –

One should apply for a bike loan after using an EMI calculator

One should apply for a bike loan once they have checked the loan particulars using a Two wheeler loan EMI calculator. Pre-checking the particulars of a loan allows the borrower to ensure that they will be able to afford the scheme. A loan with a hefty principal amount, long tenure and small downpayment will entail hefty interest rates and EMIs. If the borrower doesn’t have the financial history that can convince the lender, the application can get rejected. To keep rejections at bay, pre-checking the loan particulars using an EMI calculator is the way of the wise.

One should provide their preferred lender with accurate details

The borrower should remain calm when they are providing pertinent details to their lender for the bike loan. If wrong details are provided, intentionally or otherwise, the act can leave a red flag in the loan application. This would lead to unnecessary delays and even rejections in some cases.

Borrowers should apply for a bike loan if and only if they have a high credit score!

It is highly recommended that the borrower applies for a motorcycle loan only when they have a high credit score. A credit score above 750 is ideal for a motorcycle loan. The best part is that a borrower with a high credit score will get low-interest rates.

The reader should consult with a professional financial advisor for more details.

Must read: How To Calculate EMI on Bike Loans with EMI Calculator?

Why Should You Apply for a Two Wheeler Loan?

Two Wheeler Loan

Since the pandemic hit the world, the prices of mass produced goods have skyrocketed. This trend is also seen in the automotive sector. To put things into perspective, the prices of even the entry level motorcycles in India are overwhelmingly high these days!

Hence, applying for a bike loan seems like a good idea.

Why don’t people use cash to buy a bike?

Well, buying a bike with a motorcycle loan has many benefits.

Some of those benefits are enunciated in the sections below –

Bike loans come with low interest rates. The same cannot be stated for other secured loans like personal, business, home or car loans. On top of this, when one uses a bike EMI calculator, one can choose the best tenure + principal combination. Choosing the best tenure + principal combination can keep the EMIs for a bike loan reasonable.
A motorcycle loan allows one to keep their hands off their savings. One can also make sure that their FDs and related emergency funds remain untouched. In this way, a bike loan can keep the borrower financially secured.
A motorcycle loan can also help the borrower build their credit score. Here’s how – every EMI paid boosts the credit score of the borrower. At the same time, the overall credit history of the borrower is also strengthened.
Most lenders these days offer motorcycle loan schemes with flexible debt repayment options. It means that the borrower can clear their debt before the tenure is up. The best part, paying the debt before the tenure will not entail any penalties.

For more details, one should consult with a professional financial advisor.

Must Read: How We Can Calculate Bike Loan EMI Online?

Top Reasons Why You Should Apply for A Two Wheeler Loan

Two Wheeler Loan

Gone are the days when one could buy a motorcycle with cash.

The MSRPs of motorcycles have gone up significantly in recent years. The price hikes came after the COVID – 19. The reason is simple. OEMs are facing supply chain issues.

Furthermore, Indian motorcycles these days, come with FI and a host of other passive safety features. Hence, to keep a certain degree of profit, OEMs had to hike the prices of their bikes. Hence, applying for a Two wheeler loan is the only way to buy a bike these days.

Furthermore, a bike loan also offers the borrower a host of benefits.

Some of them are mentioned in the sections below –

Bike loans, unlike personal, business or home loans, entail low-interest rates. Furthermore, with the help of a bike EMI calculator, one can choose the best tenure + principal combination. In this way, one can keep the EMIs and the interest rate on the borrowed money low, from the get-go.
With the help of a bike loan, one would not need to break their FD. One also would not need to empty their savings. Or spend their emergency funds and have no financial cushion to protect them from future financial emergencies.
All lenders these days offer borrowers the option of applying for a bike loan online. Furthermore, one can also submit pertinent documents online. The best part, most lenders can process online bike loan applications within the same business day. It means that the borrowed money will be disbursed to the borrower’s account in no time. Thus allowing the borrower to take their dream bike home as soon as possible.
Repaying the debt via EMIs on time allows the borrower to boost their credit score. Furthermore, a bike loan also allows the borrower a chance to build a strong credit history. Strong credit history and credit score would allow the borrower to apply for hefty loans in the future.

For more details, please consult with a professional financial advisor.

Must read: How To Get A Bike Loan Quickly In Easy Steps?

Top Reasons Why Should You Apply for a Two Wheeler Loan

bike loan, Two Wheeler Loan

The prices of motorcycles in India have gone up. Hence, it makes no sense to purchase a bike with cash.

Moreover, buying a bike through a Two wheeler loan has many benefits. Here are ten of them –

A bike loan allows one to get the bike they want

A bike loan allows one to buy whichever bike they want. The price of the bike is not a matter of concern.

A bike loan allows one to keep their hands off their emergency funds

Buying a bike with a loan allows one to keep their hands off their savings. This ensures that one has emergency funds set aside for uncertain days.

Bike loans are affordable

Unlike other loan schemes, bike loans these days entail flexible repayment options, low interest rates and reasonable EMIs. For the best results, one must use a bike EMI calculator to learn about the best tenure + principal amount combination. This simple step will allow one to choose a bike loan with affordable EMIs and interest rates.

Bike loans boost one’s credit score and history

Buying a bike through a bike loan and paying off the debt via EMIs boosts one’s credit score and builds positive credit history.

Bike loans allow one to invest their savings on investment mediums

Buying a motorcycle via a bike loan can allow one to become richer. How? Well, one can choose to invest their savings in investment mediums and build their wealth.

A bike loan can allow one to become a master of money management

By applying for a bike loan, one can hone their money management skills. Honing one’s money management skills can ensure one has the means to pay off the EMIs on time.

For more details, consulting with a professional financial advisor would be a wise decision.

Must read:

How We Can Calculate Bike Loan EMI Online ?

How To Get Instant Approvals On Bike Loan?

bike loan, Two Wheeler Loan

Applying for a motorcycle loan is a necessity these days. The reason is simple – the prices of bikes in India have been increasing steadily. Hence, one can’t buy a bike with cash.

Bike loans can help one to buy their dream bike. But if they fail to follow certain tips, their loan application might get rejected.

What are those tips?

They are as follows –

Before applying for a two-wheeler loan, the borrower should use a bike loan EMI calculator. An EMI calculator is a free-to-use tool that is available on the websites of leading two-wheeler portals. One can also find these nifty tools on the official websites of their preferred lenders. Why use these tools?
Well, by using an EMI calculator, one can get an idea of the EMIs they would have to bear for the motorcycle loan. Learning about the EMI before applying for the loan will allow one to ensure that one can afford the loan. Failing to pay EMIs on time entails hefty penalties. Furthermore, defaulting on EMIs will also reduce the credit score of the borrower. EMI defaults will also place red flags in the credit history of the borrower. To keep all of these at bay, using an EMI calculator tool is the way of the wise.
The borrower should double-check the KYC details they have offered to their lender. Inaccurate KYC details will result in loan application rejections.
Borrowers should apply for motorcycle loans if and only if their credit score is above 750.

For more details, consulting with a reputed financial advisor is strongly advised i.e Bajaj Auto Finance.

Must read: What is Bike Loan EMI Calculator and How Does it Work?

How to Get Instant Approval on Two Wheeler Loan?

Two Wheeler Loan

To enjoy quick bike loan approvals, a borrower needs to follow certain tips.

Some of the most easy-to-implement tips for quick bike loan approvals are as follows –

Always ensure that one is choosing a revered lender

The primary factor that dictates whether one will get instant bike loan approval is the overall reputation of the lender.

A reputed lender will have the latest infrastructure and skilled workforce. These two aspects are crucial when it comes to paperless loan approvals. Secondly, reputed lenders will try to offer the best services. The reason is simple; it will ensure that they can hold on to their market share. It also allows them to remain at the top of the minds of their clients.

When one chooses to apply for a Two wheeler loan, they should choose a reputed lender. This will allow the borrower to have access to quality-assured customer services. This is an important consideration. One will be able to refer to the customer service cell when they face difficulties with their bike loan.

One should never forget to use an EMI calculator tool

One should use the bike loan EMI calculator tool available on the official website of their preferred lender. This would allow them to choose the best combination of tenure and downpayment. The tool would also allow them to make sure that the rate of interest for the borrowed amount remains affordable.

Using the tool will also reveal the tentative EMIs the borrower would have to bear. This will ensure that the bike loan and its EMIs won’t add to the financial burden of the borrower.

One must make sure that they are meeting the generic eligibility criteria for bike loans

It is best to ensure that the borrower is meeting the eligibility criteria set for a bike loan.

The eligibility criteria for a bike loan offered by NBFCs and banks in India generally consist of –

Age of the borrower
Monthly income of the borrower
Financial stability of the borrower
Residential address of the borrower. The borrower should reside in the same city as the lender’s office.
The credit history and credit score of the borrower. The credit history of the borrower should be spotless. The credit score of the borrower should be above 750.

For more details, feel free to consult with the spokesperson of a revered lender today!

Must read: How To Calculate EMI On Bike Loans With EMI Calculator

What Are The Documents That You Will Need To Apply For A Two Wheeler Loan?

Two Wheeler Loan

Bikes in India these days come with hefty sticker prices.

Hence bikers planning to buy a new bike tend to apply for two wheeler loans.

Why?

Well, a bike loan helps a person keep their savings intact!

What are the documents a person would need to submit while applying for a bike loan?

Well, they are as follows –

For salaried loan applicants –

ID proof in the form of any one of the following –

Passport
Photo credit Card
Pan Card
Driver’s Licence
Voter’s ID
Aadhaar Card
ID card with the applicant’s photograph that is issued by the state or central government of India.
Two recent passport size photographs (mandatory).

Address Proof in the form of any one of the following –

Passport
Driver’s Licence
Voter’s ID
Utility Bill
Aadhaar card
Bank account statement
Post Office savings bank account statement
Property or municipal tax receipt
Last 3 month’s salary slips
Form 16
Latest ITR
Last 3 months’ bank statement (mandatory).

For loan applicants who are business persons –

ID proof in the form of any one of the following –

Passport
Pan Card
Driver’s Licence
Voter’s ID
Aadhaar Card
Two recent passport size photographs (mandatory)

Address proof in the form of any one of the following –

Passport
Driver’s Licence
Voter’s ID
Utility Bill
Aadhaar card
Bank account statement
Post Office savings bank account statement
Property or municipal tax receipt
Latest ITR
Last 3 month’s bank statement (mandatory)

Conclusion

For the best results, be sure to use the bike EMI calculator before applying for a loan!

Must Read:

How To Choose The Best Two Wheeler Loan?