A two-wheeler is a common means of transport which can be found in almost every household. But not everyone has enough amount of money to buy a bike at once. For that what you need is a two-wheeler loan. It is the best way to finance the down payment required to get the bike.
There are many banks or financial institutions which provide two-wheeler loans. But how do you decide which bank to choose for the best two-wheeler loan? Well, you have come to the right place. In this article, we are going to discuss the points to look at while selecting a two-wheeler finance provider.
1. ELIGIBILITY CRITERIA
There are specific eligibility criteria for every person who applies for a two-wheeler loan. Different banks have different criteria set for loans. It would help if you looked for the bank which matches your eligibility so that you don’t have to face rejection on the first go. The essential eligibility criteria for a two-wheeler loan is:
- You should be 21 years or above (18 years if you go for Muthootcap)
- You should be salaried or self-employed.
- You should have at least one year of experience in your job.
- The annual income should be approx. 96,000 for working professionals and 1,20,000 for a self-employed person
2. LOAN TERM
The longer is the duration of the loan; the lower is the rate of interest. Do proper research on which bank provides longer loan term and what suits you. Mostly the loan tenure for two-wheeler is 4-5 years.
3. LOAN PROCESS TIMING AND FEES
Banks used to take a lot of time in processing the loan. But this is not the issue nowadays and especially in case of vehicle loan. You do not want to sit in the bank for hours and hours just for a small amount of money. Look for a financial institution that gives you loan facilities in a short amount of time like Muthootcap, which approves a two-wheeler loan within a few hours that are required for documentation and asks for no hidden charges.
4. LOAN AMOUNT
If you don’t have any money saved with you but still want a bike, you don’t have to worry about when Muthootcap is there. It provides 100% loan amount so that you don’t have to collect money for a down payment. But it would help if you kept in mind that more loan amount equates to a more significant number of EMIs.
5. EMI
Equated Monthly Installments are the payments you give back to the bank after taking a loan. The amount you pay depends on the loan tenure, your loan amount and interest rate. Find a bank which has a reasonable or minimal interest rate say, for example, Muthootcap, which gives loan at an interest rate starting from 0.99%. You can even use the EMI calculator present at the official site of Muthootcap (https://muthootcap.com/) for calculating your EMIs based on the loan amount and duration you want.
6. DISCOUNTS AND OFFERS
Nowadays, banks give discounts and offer on loan for existing and non-existing customers. For example, an offer on a two-wheeler or four-wheeler loan on the festive season. Try to buy your two-wheeler at that duration of time and avail exciting offers.
CONCLUSION
The points mentioned above are the main points to focus on while looking for a finance provider for a two-wheeler loan. It is best to do your research properly before going for any bank to apply for a loan, and we hope you have got all the information regarding that.
Congrats in advance for purchasing your dream bike- Muthoot Fincorp.
