Since the pandemic, social distancing has become the new norm. While travelling to and fro from work, maximum people use public transport which can be risky. In such situations buying a two-wheeler is a great option. It is an option that crosses each individual at some time of their life. So instead of delaying it now is the best time.
If you are falling short of some funds to buy a vehicle then the two-wheeler loan is your answer. With just a click you can now get a two-wheeler loan to purchase your vehicle. Let us discuss what two-wheeler loan is and the top reasons why one should take it.
What is a Two-wheeler loan?
The funds allocated to individuals by various financial institutions to purchase a two-wheeler is known as a two-wheeler loan. It can either be secured or unsecured. For a secured loan, the individual is required to pledge security and thus the loan is offered at the lower interest rate. However, for an unsecured loan, no collateral is required, but the rate of interest charges is also high.
Reasons for taking a personal loan
Different individuals have different reasons, but the most common ones for taking a personal loan are:
- Why settles: If you are borrowing money from the bank then there is no need to settle for a bike that you do not want. Instead, you can buy your dream bikes, without worrying about emptying your savings account.
- Enjoy Tax Benefits: The vehicle loan also allows some tax benefits. If you are taking the loan on your name, then apart from the loan interest payment, you can deduct various expenses like insurance, fuel, maintenance as these charges are deducted from your profits, allowing you to enjoy depreciation benefits.
- Low-interest rate: due to the popularity of bikes, the two-wheeler loans are stress-free and the interest rate is considerably low. With so many competitions even, the lenders are offering a lower rate. So, make sure to look for the minimum rate lender.
- Save the cash for emergencies: If you have the savings for buying a bike, opting for a loan with the help you save money for emergencies. You can repay the loan amount in small monthly pockets.
With so many benefits attached with a two-wheeler loan, you also need to fulfil the eligibility for two wheeler loan for the same.
Eligibility criteria for a two-wheeler loan
- The applicant must be at least 18 years of age at the time of loan application and a maximum of 65 years before the loan matures
- The applicant must be a resident of India, residing in the same address for a minimum period of 1 year
- The applicant for a minimum of 1 year, must either be an employee at a private limited company, an MNC, a public sector enterprise.
- For self-employed professionals, IT Returns for 1 consecutive year have to be produced
- The applicant must have a good CIBIL score
- The applicant must have all the relevant KYC documents as specified by the lender. The documents include:
- Two-wheeler loan application form duly filled and signed
- All KYC documents to verify the following:
- Proof of identity – PAN card, voter’s ID, passport, driving license
- Proof of address – Utility bills, passport, rental agreement
- Proof of age
- Passport size photographs
A two-wheeler loan not only offers funds but the key to owning your dream vehicle. A lesser interest rate and various other benefits, Two-wheeler loan is a dream come true. If you are planning to apply for the loan, make sure to build your credit score and before applying to make sure about all the loan terms from the lender.