2 Wheeler Loan

5 Factors That Will Help You To Take 2 Wheeler Loan

There is no doubt that the 2 wheeler loan in India is becoming increasingly popular with each passing day. It is, in fact, the go-to source for most bikers, and owning a bike has become a common affair for many. This, however, does create severe competition for space on the road which can be really stressful at times. With rising pollution and traffic congestion across the country, there should be a need to borrow a two-wheeler. If you are in need of money urgently and have your eye on a bike, why worry about approaching a bank or credit card issuer when you can easily apply for a 2 wheeler loan.

Credit Score

A credit score is a number calculated based on various factors including your payment timeliness and the total outstanding balance of any loans. A low credit score will affect your ability to borrow money for such items as a car or home. While it is certainly possible to have good credit, some people just do not have enough data available in this scoring model due to a short history of credit usage.

Type of Loan

Secured loans are those that require the borrower to pledge an asset as collateral for a specific amount. The lending institution holds the rights over the collateral as long as the loan becomes effective, and is repaid in time. A good example of a secured loan is a 2 wheeler loan, when you need to use your vehicle as security. Visiting a car or bike dealer’s office can give you a better idea about the same.

Tenure of Loan

We offer our customers a choice between 12-60 month tenure loans on two-wheelers. While the loan interest varies with the tenure period, the EMI that you have to pay is generally lower for the longer-term loans. The shorter-term loans are cheaper in terms of EMIs but you would need to pay them off quickly. All TNPL loans offer floating interest rates and you can avail of this benefit by simply making timely monthly repayments of your EMIs.

When choosing the tenure of the loan, it is better to take a loan with a lesser tenure. This will help you save money on interest charges and still fulfill your financial obligation. You can pay off the short-term loan as soon as possible and then continue to work on repaying the remaining amount of your original loan that has a larger tenure.

Interest Being Charged

Fixed interest rates are like a fixed deposit. The amount that you receive remains unchanged. In fact, the name “fixed” is derived from the Latin word focus which means “set”. Fixed interest rates can either be short-term or long-term. The interest rate on a fixed deposit remains unchanged for the entire term of the deposit, unlike the floating rate of interest where it can change depending on market conditions

Documents Required for loan

Here is a list of required documents for a loan application. We recommend that you complete the pre-application form to start the loan process as this gives you access to your credit report and qualifies you for a loan offer.

  • Aadhar Card, PAN Card, Voter ID, etc.
  • Income proof – salary slip, ITR, and latest bank statement
  • Canceled cheque and passport size photographs

The minimum salary required to qualify for loans is 30,000 ($500) while the maximum is 1,50,000 (25,000). To lay your hands on a personal 2 wheeler loan, you need to provide your personal details and go through a credit review process to be qualified for such loans.

You need to decide how much time is required to repay your loan. It should be between three to five years depending on your monthly income and savings. Avoid high-interest rate loans as they tend to burden borrowers and force them into financial distress. Consider a low-interest rate loan if you do not have adequate savings for repayment.

This 2 wheeler offers a wide range of features to suit your requirements. It sports excellent mileage, amazing performance, brilliant aesthetics, and much more. For more information regarding this 2 wheeler loan, call us today. Also, Get detailed Muthoot share price news and analysis, Dividend, Bonus Issue on their official website.

DailyBN