Driving in the city can be very stressful. The heavy traffic and reckless drivers lead to road rage and delays in your everyday commute. Cars are simply the harder option in cities and other places with narrow roads. This is why more people are making the switch to a two-wheeler. Along with cutting down on the time taken to travel to work, using a two-wheeler is also more economical in terms of fuel efficiency and service costs.
Unfortunately, not everyone can afford to pay a bulky amount to buy a two-wheeler. If you are one of these people who are stuck in the daily cycle of using public transport and coming home tired and stressed only to repeat the same thing all over again the next day, you’re in luck.
Auto finance companies
Auto finance companies are now offering easy loans with low-interest rates that eliminate the tedious disbursal process and processing fees. Here are the things to keep in mind before applying for a Two wheeler loan:
What You Should Look Out for While Searching for the Best Loan?
Never take a loan before thoroughly understanding your options. Various banks and companies will have different terms and conditions for their loans. There are a few facets that all banks use to set the terms for their loans.
Lower interest rates
Flexibility during repayment
Understanding which of these factors are more important to you can help you choose the best loan for your financial situation. Once you are aware of what these terms mean, you can make a more educated decision while taking a loan.
Although getting a loan has become an easy and seamless process, it can be of great help to have a repayment plan in place before you take a loan. This will ensure that you do not default and that you can pay the loan back on time without any hassles.
Most banks have a very helpful customer care service in place. Call the customer care and ask for assistance, they will help you create a repayment plan. You can also use an online bike EMI calculator to generate your EMI amount by providing details like the loan amount, interest and time. Ensure that the final EMI amount is not a burden to your monthly financial status. Always opt for a longer tenure so that you can be sure of repaying before the due date.
What Makes You Eligible for a Loan?
There are a few criteria that decide whether or not you can avail a two-wheeler loan.
All applicants must be between the ages of 18 and 65.
You must have a stable job for one year or be self-employed and receive IT returns for at least 2 years.
You must provide address proof to prove residential reliability.
You must maintain a high CIBIL or credit score.
All applicants must have the required documents to be eligible.
Making sure that you are compliant with the condition before you apply for a loan can eliminate the chances that your loan will be rejected.
These are the documents that you must present before your loan is approved.
ID proof- includes Aadhar card, PAN card, Passport or driver’s license.
Address proof- Driving License, Latest Electricity Bill, Latest Phone Bill, Aadhar Card, PAN Card or Passport.
Along with these two compulsory documents, you also need to have proof of income. This can vary depending on whether you are salaried or self-employed.
For salaried applicants-Employment or offer letter, the Last salary slips within 45 Days, bank statements for the previous 6 months and the latest form 16
Self-employed- Bank statements for the previous 6 months, Sales tax returns, TDS Certificate, Company details and the income tax return for the previous three years.
Once you are sure that you are eligible for a loan, you can apply either online or offline. Applying online takes only a few minutes. After calculating your eligibility, your loan will be approved in about 24 hours.
An offline application can be done by visiting the nearest branch where an executive will guide you through the entire process.