What Are the Major Benefits of Two Wheeler Loan?

With the increasing number of potholes and roadblocks everywhere, it is easier to have two-wheeler to commute short distances. Getting the required loan to buy a two-wheeler is very convenient and hassle-free. In fact, two-wheeler loans have a lot of advantages. Starting from having a lesser financial burden over your head to a higher degree of affordability, two-wheeler loans have a number of perks.

The bank also gives you additional benefits like an increased credit score when you pay off the loan before time. In some cases, you can also extend the tenure of loan payment as per your convenience. Two wheeler loan have a high resale value. You can choose to buy a new vehicle after replacing your old one once you pay off the old loan.

Bajaj auto finance allows you to purchase several latest two-wheeler models on EMI. Some are:

  • Bajaj Dominar 400
  • Bajaj Pulsar 150 DTSI
  • KTM 125
  • KTM RC 390
  • Bajaj avenger street 220.

All these models have more exceptional mileage than even the basest of four-wheeler vehicles. This would free you off all the tension on this field. Bajaj Auto Finance hence allows you to invest in something useful and pay for it at your convenience.

Also Check: – Calculate Your Two Wheeler Loan EMI Online

Major Advantages of buying a Bike on EMI

These days (Loan) EMI system is the best and fastest process of purchasing a dream bike. Due to some reasons, many people can’t afford a bike on a single payment, Two Wheeler loan is the best option for those persons. There are many Banks and NBFS companies offer a loan with lower interest rates.

Advantages of buying a bike on EMI –

  • Reduce the Burden on Your Budget – It reduces the burden on your budget. It the best process to take a loan and you can pay the pending amount in easy instalments.
  • Offers & Flexibility – There are many benefits of availing a 2 wheeler loan like instant loan approval, fast processing, flexible EMI system and also have online documentation process. This saves your time and money.
  • Fast Process – These days loan approval is the fastest and simple process, no need to waste your time and money. You can check your eligibility criteria and document verification process online. Also, know about documents required for Bike Loan.
  • Low-Interest rates – Banks and NBFC firms provide Two wheeler loans on the lowest interest rates. Rate of interest based on your income, price of 2 wheeler and market variations.
  • Best for CIBIL Score – CIBIL Score or credit score details summary of your previous loan credits. It is the best option to improve your credit score. Many loans like home loans, car loans require a good CIBIL score.

Know Major Benefits of Buying Two Wheeler Vehicle

Easier to navigate – It is easy to navigate during traffic jams (congestion). It takes less space and reach your destination faster as compared to four vehicles.

Environmentally friendly  – It produces less pollution, less harmful impacts to the environment.

Lower maintenance – The service cost of a bike is very less as compared to cars. Also , It is an easy mode of transportation.

Affordable – These days purchasing a bike easy and affordable. The reason behind this the EMI system (Equated Monthly Installments), lower interest rates by various sources.

Best Loan policy- Best loan policies with lower Interest rates available for Two Wheeler Vehicles. You can take a Two Wheeler loan with Flexible timing and less documentation from various sources.

Savings-  In terms of Toll tax and good mileage which results in huge savings on fuel costs.

Ease of parking – Two Wheeler takes less space for parking. It is best for high-traffic areas. Many people prefer bikes in traffic areas.

Also, read :- Two-Wheeler Loan – Eligibility Criteria & Required Documents

Is Choosing Two Wheeler Loan is a Good Option?

Commuting through public transport such as bus, metro, auto and more has become such a task. People face various issues like delays, time taking, seat rarely available, crowds, unhygienic, high costs when suffering in public transport. 

In the market there are various kinds of bikes like adventure touring bikes, dirt bikes, commuter bikes, sports bikes, naked bikes that you can finance by taking a two wheeler loan.

Below we have listed some reasons why you should take a bike loan:

  1. Low Financial Burden – Such loans reduces the burden from your shoulder. Everything depends on the eligibility criteria and documentation requirements. One can purchase premium bikes also.
  2. Good Credit Score – To avail a two wheeler loan you don’t need to have a high CIBIL score that makes this loan is better from personal loan.
  3. Fast Process – Those days are gone when you have to wait for months for loan approval and stand outside the banks/NBFCs in long queue. Nowadays the loan gets approved within a day. Also, the repayment period varies around 12-48 months which makes it convenient for the borrowers to pay it in small amounts.
  4. Multiple Benefits – As per the Indian Motor Act, Banks and NBFCs approve loans with an accidental cover and an insurance cover.
  5. Interest Rates: The interest rates ranges between 12%-27%. The rate depends on your income, bike specifications, employment period etc. As per the information the rates have gone down in the last 2 years.

Before applying for a bike loan, you should also check bike loan interest rates. To apply for a two wheeler loan, visit the official website today.

5 Tips to Pay Off Two Wheeler Loan Faster

Paying the bike loan faster helps in lessening the financial burden of the borrower. The sooner you pay the two wheeler loan the better. One can go for prepay your loan option. To prepay your loan of banks or financial institutions will charge some amount of fee. It is possible to prepay your loan only when you have some surplus amount other than your fixed monthly income.

Below are the methods to pay your bike loan debts faster:

1. Make Use of Excess Money- 

Few times people get money which they didn’t expect. For example: Bonus by the employer, old debt settled by friend etc. People should use such amount instead of wasting it.

2. Choose Auto Payments-

Few banks and financial institutions offer discounts if borrowers choose auto payments as it saves a lot of paperwork and time. It will also help in saving some money.

Additional Read: Bajaj 100cc Bike

3. Make Prepayment- 

Though financial institutions may charge a penalty on prepayment, most lenders don’t mind a couple of extra installments per year. So, take advantage of that. Just in case, you’re capable to fully settle the loan, make ensure the savings you’re making via prepayment is somewhat more than penalty charged. 

4. Negotiate Repayment Terms- 

It is one of the most important step to negotiate bike loan interest rate, amount, tenure. One shouldn’t hesitate because any bank or financial institutions don’t want to let go of an eligible borrower. 

5. Focus on Other Sources of Income

If your monthly income is not enough to pay off the bike loan then generate some other sources of income. This will help you in paying your loan faster.

Useful Links:

Is It Possible for a Student to Get a Bike Loan?

How to Get Bike Loan without Down Payment?

Documents Required for Bike Loan

What are the Documents Required to Get a Bike Loan?

If you are planning to buy a bike with a loan from a private institution or a bank, you must first know which documents will be required to take a loan. Due to the absence of documentary, it may be time to get an exposure of your loan. This will waste your time. Therefore it is necessary to collect all the necessary documents before applying for a bike loan. To get approved loan, lender seeks different types of documents from the applicant.

Required Documents For Bike Loan

Applicant must have Income Proof, Identity Card, Resident Proof, Income Tax Return or Form-16, latest salary slip, bank statement, passport and driving license. Also, decide how long you can repay the loan. If you have taken any loan in the previous years, the bank or a private institution also checks the rebate of its payment. 

You may also like: Top 5 Fuel Efficient Bajaj Bikes

Representative’s Visit and Loan Acceptance

After giving all the documents in the bank or a private institution, the Investigator comes to your home or office and again checks the papers you have made available to the bank or a private institution. The applicant is required to meet the bank or a private institution representative’s visit. If he/she asks for some information, then you need to provide information to them.

Check bike loan interest rate and ride your dream bike.

Is It Possible for a Student to Get a Bike Loan?

In India, Two wheeler is one of the most used modes of transport. Many people are opting for bike loan nowadays but one must have to meet certain criteria set by the lender to avail a bike loan. If you are a student and want to get a bike loan, so you have to match with following eligibility and criteria:

  • Age- The minimum age to avail a two wheeler loan is 21 years. But there are some lenders which are ready to give loans to 18 years students as well.
  • Credit Score History- A person with a good credit history has more chance of getting two wheeler approval.

Also Check Out: KTM Bikes in India

  • Down Payment- Higher the down payment, the higher the chances of bike loan approval.
  • Guarantor- It is easy to get a two wheeler if apply for a loan with a guarantor. But the guarantor has to be in a good and stable job. A guarantor is a person who will be responsible if you couldn’t afford to pay the loan amount.
  • Part-Time Job- Mostly lenders wants income proof to check borrowers repayment capabilities. Students can show their part time job pay slips.

Students should be wise with Bike Loan Interest Rate because different lenders offers different interest rates. Select lowest from all. There are certain documents that almost every lender needs like ID proof (PAN card), Address proof (Driving license, voter card, passport, utility bill), Income proof (Salary slips for the last 3 months).

You May Also Like to Read: Bajaj Pulsar NS200 or Bajaj Pulsar RS200

How to Get Bike Loan without Down Payment?

From the last two decades, two-wheelers are in high demand in India. One can get a bike loan without down payment if you fulfill certain criteria. The norms can vary from lender to lender but there are some common criteria like:

1) Age: It Should be under 21 and 65 years of age.

2) Credit History: Lenders check your credit history to determine how you have managed your credit in the past. A good credit history will help you to get cheap finance.

3) Residential Status: One must be residing at the address for a minimum of 1 year. Document proof is needed in case of a change in the place.

Must Read: KTM Bike vs TVS Apache

4) Income: Gross income of a salaried person minimum should be Rs. 84,000 a year and for self-employed, it should be Rs.72,000.

5) Existing Customer: One can get loan at low-interest rate if you already have an account in the bank/financial institution. Existing customers gets preferred before anyone else.

6) Working Status: Minimum 1 year of work experience required.

Check- KTM bike price in India

For documentation address proof, identity proof, income proof among other documents are required. To apply for loan all you have to do is fill an application form online and get funds transferred to your account instantly. It is necessary to compare bike offers of various lenders before opting for one.

You can check your Two Wheeler Loan Eligibility online.