What is Two wheeler Loan?
A Two wheeler loan is a type of personal loan without any tax benefits which can be availed by an individual to buy a new or used bike. Two wheeler loan amount could be 60% to 90% of the Ex show roam price. It allows individuals to pay a small part from his pocket and rest of the amount need to paid in each monthly instalments (EMI) with interest rate applied. A bank offers such Two wheeler loans to the borrowers with a good credit score and must be able to pay bike’s RTO, Insurance & min. 10-20% down payment.
Types of Two wheeler Loans
Type of Two wheeler loan depends on the type of Two wheeler you are looking for, basically there are Two types – Two wheeler loan for new and used bike.
2 Types of Two wheeler Loans
1. Two wheeler loan for New bike
2. Two wheeler loan for Costly Used bike
New Two wheeler Loan:
A new Two wheeler comes with ex show room price and on road price. Banks usually offers loan on the ex show room price. A bank in India can provide upto 100% of ex show room price depending upon the customers income, credit score, type of Two wheeler and seasonal offers.
Used Two wheeler Loan:
Unlike used cars, high end used bikes are very expensive like a new car. Costly Used Two wheeler market is booming immensely these days and there are many startups in India currently deals in selling and buying costly used Two wheelers. The market is huge and the Two wheeler enthusiasts are lucky enough to grab many lucrative opportunity to own a high end bike. Banks are ready to offer loans for used Two wheeler and unlike new Two wheeler loan, a used Two wheeler loan depends upon the age of the bike, insured declared value (IDV) condition of the bike, previous accidental history and number of owners. Upto 90% loans are available for used Two wheeler with lowest interest rate in India.
Questions a Bank or Financial Institutions would Ask?
1. What type of Two wheeler you want to buy? New or Used?
2. Two wheeler make and model?
3. Place of residence?
4. What percentage of bike’s price you want to borrow?
5. Period or tenure of the long. A long EMI plan can be on higher side of the rate of interest.
6. Your source of income? Whether you are a salaried, self employed, etc.
Benefits of Two wheeler Loan
Two wheeler loans actually brought happiness to billions of Indians. Youngstars are always looking for new trends and stylo bikes for their daily use. From college goers to sports person, everybody just love to ride a bike. There are many bike riders who loves to travel various places like mountains, landscapes, remote or rural areas in India.
Now, any person with a steady income can afford a Two wheeler easily and as well maintain properly. In urban or rural area, a Two wheeler is very much necessary. Whether a working professional or small business person, everyone needs a Two wheeler to communicate easily and effortlessly. Two wheeler loans has been benefiting many in India and one of the best benefit is that the loan can be taken against the Two wheeler itself like a car loan or home loan. So, you can use the Two wheeler by just paying monthly EMIs and once the emis gets over, the whole Two wheeler is yours.
Moreover, by having a Two wheeler loan you will get a chance to improve your credit score by paying EMI’s on time. A bank checks your credit score in order to approve new loans. You just need to take bikee of your bike’s health and each monthly installments. Also, there are many banks which offers insurance against accidental damage to the bike. Once you are out of the installments, you will be happy to use the Two wheeler for more years. A Two wheeler can be in good shape even after the laon term is complete. Life time of a Two wheeler typically is 10-20 years and whereas a Two wheeler loan can be completed in 1-5 years only.