Purchasing a two-wheeler has numerous benefits! It gets you anywhere in time and enables you to increase your productivity and blaze through the city traffic hassle-free. However, not everyone can spend a lump sum to purchase this. This is where two-wheeler finance options come into play, making it easier to own your dream vehicle without straining your finances. Want to know more? Let’s have a look at the post below:
What is Two Wheeler Finance?
Two-wheeler finance refers to the various financial products and services available for purchasing two-wheeled vehicles, such as motorcycles and scooters. These financial products are typically offered by banks, non-banking financial companies (NBFCs), and other financial institutions like HDB Financial Services Limited. The primary goal of a two wheeler finance company is to make it easier for individuals to afford these vehicles by spreading the cost over a period of time through loans or other financing arrangements.
Benefits of Financing Your Two-Wheeler
Financing a two-wheeler is now easier, with high loan values, attractive rates, flexible terms, and minimal documentation for quick approval. Let’s take a detailed look at the benefits:
- High Loan Value
One of the primary benefits of two-wheeler finance is that you can get a loan value of up to 95% of the vehicle’s on-road price. This means you only need to arrange for a minimal down payment, making it easier to manage your finances.
- Attractive Interest Rates
Two-wheeler finance companies offer attractive interest rates tailored to your financial profile and repayment capacity. This ensures that your monthly EMIs (Equated Monthly Installments) are affordable, and you can repay the loan without financial stress.
- Flexible Repayment Tenure
With repayment tenures ranging from 12 to 60 months, you can choose a repayment plan that suits your financial situation. Longer tenures mean smaller EMIs, while shorter tenures allow you to pay off the loan quicker.
- Minimal Documentation
Applying for a two-wheeler loan is simple, with minimal and hassle-free documentation. Many finance companies offer paperless application processes where you can upload soft copies of the required documents online.
- Quick Processing and Disbursal
Once your eligibility and documentation are verified, the loan amount is approved and disbursed quickly. This means you can own your dream two-wheeler without any unnecessary delays.
How to Apply for Two-Wheeler Finance?
Applying for a two-wheeler loan is a simple process that can be done through various channels, such as:
- Online Application
Most two-wheeler finance companies have an online application portal. Here’s a step-by-step guide to applying online:
Step 1: Visit the official website and go to the ‘Apply Now’ section.
Step 2: Fill in your personal details and verify your mobile number with an OTP.
Step 3: Provide your professional details and complete the application form.
Step 4: Upload the required documents.
Step 5: Apply and wait for a representative to contact you.
- Mobile Application
Some finance companies offer mobile apps that allow you to apply for a loan from the convenience of your smartphone. The process typically involves:
Step 1: Download the mobile app.
Step 2: Verify your mobile number with an OTP.
Step 3: Click on ‘Apply for a New Loan’.
Step 4: Enter the required loan and applicant details.
Step 5: Provide your address information and complete the application.
- Branch Visit
If you prefer a face-to-face interaction, you can visit the nearest branch of the finance company. Here, a representative will guide you through the application process, help you fill out the form, and submit the necessary documents.
- Customer Support
You can also get your two-wheeler finance by calling the finance company’s customer support number. A representative will assist you with the application process and help you complete it over the phone.
Eligibility Criteria for Two-Wheeler Finance
To be eligible for a two-wheeler loan, ensure you meet certain criteria:
- You must be a resident of India.
- The minimum age is 21 years. The maximum age is 58 years for salaried individuals, 60 years for government employees, and 65 years for self-employed individuals at the end of the loan tenure.
- Salaried applicants should have a minimum net take-home salary of ₹10,000 per month. Self-employed applicants should have a minimum ITR (Income Tax Return) of ₹1.20 lakhs annually.
Documents Required by a Two-Wheeler Finance Company
When applying for a two-wheeler loan, you need to provide the following documents:
- Proof of Identity and Address (Any One)
- Passport
- Voter’s ID
- Driving License
- PAN Card
- Aadhaar Card (voluntarily
- Income Proof (For Income Proof Program)
- Salaried: Latest salary slip, last three months’ bank statements reflecting salary credits, latest Form 16, or latest ITR.
- Self-Employed: Latest ITR, latest tax challan with ITS 2, latest sales tax return, latest audited, certified reports, or TDS certificate for the same financial year.
- Surrogate Proof (Instead of Income Proof)
- Proof of owning a house or agricultural land
- Last three months’ bank statement
- Debit or credit card statements
Tips To Choose the Right Two-Wheeler Finance Company
Choosing the right two-wheeler finance option involves considering several factors:
- Compare Interest Rates
Interest rates vary between different finance companies. Comparing rates can help you find the most affordable option.
- Check Loan Tenure Options
Choose a repayment tenure that fits your financial situation. Longer tenures mean smaller EMIs, while shorter tenures allow you to repay the loan quickly.
- Understand the Terms and Conditions
Read the fine print to understand all the terms and conditions associated with the loan. This includes prepayment charges, processing fees, and any other hidden costs.
- Use an EMI Calculator
Most finance companies offer an online EMI calculator. This tool helps you calculate your monthly EMIs based on the loan amount, interest rate, and tenure. It’s a handy way to plan your finances and ensure the loan fits within your budget.
Financing your dream two-wheeler is simple when you follow the right steps. From setting a realistic budget to choosing the best lender, each step brings you closer to owning your desired vehicle. By ensuring you meet the eligibility criteria, organising your documents, and understanding your loan terms, you can secure the best deal and enjoy a smooth purchase experience. Start this journey confidently, knowing that with careful planning and informed decisions, you’ll soon be riding your dream two-wheeler. Embrace the road ahead with excitement and financial ease!