Want to Apply for a Loan to Buy Your Favorite Bike

In our country- India, going to the office through a crowded public transport could be time-consuming and a frustrating affair. A car or a two-wheeler can bring a relief and reduce your traveling time.

That days have gone when you need to give a huge amount of money to buy a vehicle of your choice. It has now become simple to buy a vehicle with banks and private lenders. They provides auto loans with varied interest rates depending on your need.

Appling for a loan to buy a two-wheeler is much easier than a car loan. As there is a huge demand for bikes, the two-wheeler is competitive. Hence the consumer has the upper hand when it comes to financing. It only takes 2 to 3 business days for sanction.

But here are some basic criteria.

1: Eligibility Criteria: You must be over 21 and below 60 years of age for applying a two-wheeler loan. Also your financial capability is checked through your bank statements, and for paid employees, remaining in the same job and residence for 1 year is an important benchmark to be eligible for a bike loan.

2: Documentation: The documents that required are ID proof, Age proof, Address Proof, last three months' salary slip for salaried employees and bank statement.

3: Down Payment: The banks do not provide you the entire amount as loan. Minimum down payment differs from moneylender to lender depending on the value of the vehicle. Generally, the minimum down payment should be 10% of the principle amount.

4: Loan Tenure: You can select a repayment lease of 12 to 36 months based on your monthly income. Making a high amount of down payment is recommended as the repayment lease and rate of interest will be less.

How to Apply for a Two-Wheeler Loan? 

You can either apply online or offline for a bike loan. Online method is stress-free and you can also calculate your EMI amount, a rate of interest and tenure. For the offline method, you need to approach the investor and go through several formalities vector capital loans.

So, Instead of paying up your whole savings and being worried about your finances, a bike loan will be an appropriate option where with less interest and EMI, you won't feel the problem in the long run. While cars are run down assets, bikes have a good re-sale value, and you can update your vehicle according to your wish.

A two-wheeler gives you the best form of personal transport to commute to your workplace and getaway with your friends on a weekend. Hence go for a two-wheeler loan if you were planning to buy a bike for a long period of time.

Always remember that any kind of loan comes with terms of repayment and a contract and your credit activities will be recorded in the credit profile. Acts, such as delays in payments, paying minimum balance could damage your credit profile and your future wealth. Always Take care of your credit health!