Two Wheeler Loans in India

Two Wheeler Loans - An Overview

Whenever you are planning to buy a two wheeler vehicle within an engine range i.e. 300- 350 cc, next question come to your mind how to manage your finance. With shoot up in the cost of traveling, owning a vehicle is a necessity for any individual. When we compare four wheelers along with two wheelers it is always easier to maintain two wheelers in comparison with four wheelers. A two wheeler consumes less fuel and provides good mileage. Next question may come to your mind how to go ahead for two wheeler loan. Many banks, big as well as small, are providing two-wheeler loans; to buy a vehicle i.e. two wheeler of your dreams. At the same time pay back the loan without any financial stress through easy installment.

best two wheeler loan in noida

It's always better to discuss prevailing interest rate in the market before applying for the two wheeler loan.

Interest Rates

The interest rate on two wheeler loan charge by different banks is as under:

Banks Rate of Interest* Tenure
State Bank of India 8.75%-17.65% Up to 36 months
Oriental Bank of Commerce 10.20%-10.45% Up to 84 months
Bank of India 9.50% Up to 60 months
Punjab & Sindh Bank 11.60% Up to 36 months
Corporation Bank 13.10% Up to 36 months
Vijaya Bank 11.65% Up to 60 months
Punjab National Bank 14.50% Up to 60 months
HDFC Bank 10.50%-24.00% Up to 48 months

Special Notes: - * Terms and Condition apply.

Eligibility-
  • Most of the lenders offer two-wheeler loans for people within the age group of 18 to 65

  • The loan applicant can be a student, a salaried profession or a self-employed customer
  • The loan applicant must have a permanent driving license

  • Some selected banks also offer specialized two-wheeler loan products for agriculturists

  • Individual income criteria for two-wheeler loans depend on the type of loan and at the same time discretion of the bank
Documentation Requirement-

For Salaried Individuals -

  • Government approved identity same includes Pan Card & Adhar Card

  • Address proof same may include any utility bill or ration card

  • Applicant need to submit photographs-5

  • Banks statement-6 months

  • 3 months salary slip

  • 3 years ITR with computation

  • Employee ID or visiting card

  • Confirmation on the company may be required (May be asked by Bank)

  • Two Wheeler Quotation

For Self-employed Individuals -

  • Government approved identity same includes Pan Card & Adhar Card

  • Address proof same may include any utility bill or ration card

  • Applicant need to submit photographs-5

  • Banks statement-1 years

  • ITR-3 years with B/S, P/L, computation

  • One registration certificate

  • Sale tax/service tax return (if have)

  • Confirmation on the company may be required (May be asked by Bank)

  • Two Wheeler Quotation
Benefits-

Two wheeler loans in India generally carry the following features:

  • Maximum Loan: You can expect up to 90% of loan dispersal on a two wheeler, which allows the customer to pay 1 tenth of the total two-wheeler cost out of his/her pocket.

  • Lending Institutions Tie-ups: Strategically, Afinoz is well connected with different lending institutions, which gives us an extra mile to pass on good lucrative schemes to our customers. We also share good offers including benefits with our customers.

  • Loan Dispersal is Straight: All lenders have simplified the processing and made easier eligibility for the two wheelers. Duration for a loan may vary from 12 to 48 months along with lower interest rates.

  • Age Eligibility: For processing of two wheeler loans request, most of the lenders have the minimal eligibility age of 18 years and on maximum side 65 years. In some of the cases, bank may ask of minimal eligibility which is 21 years.

Frequently Asked Question-
  • Query- Whether it is mandatory to go to the bank personally to get the loan?
    Reply- Not at all, In fact, many two-wheeler dealers or showrooms have in-house teams and representatives from the bank who help the customer in processing their loan application. Additionally, you can apply for loans via Afinoz portal. Paperwork requirement may vary from lender (i.e. bank) to lender as some bank may ask for soft copies of the documents while others will require hard copies of the same.
  • Query-What is the loan coverage amount?
    Reply- Various banks have different operating margins and that is why the loan amount differs from bank to bank. But as per one estimate, same can go up to 90%.
  • Query- Whether is it necessary to get with two wheeler insurance?
    Reply- Driving a two-wheeler entails a lot of risks as it is not as safe as a car, therefore, one must purchase the insurance policy.
  • Query- Whether individuals or students those who are 18 years and above as well they are jobless are they eligible for a loan?
    Reply- Yes, the bank can offer you the loan only if, you have collateral or guarantor support in case you fail to make timely payment in individual cases. Since a student comes under special cadre all together and treated as special cases. The bank may choose to lend loan on a merit basis or in other words, it is their sole decision whether to extend a loan to a student or not.
  • Query- Is there an option to pre-pay the entire loan amount?
    Reply- Absolutely, you may choose to foreclose your two wheeler loan. Though banks have different guidelines around pre-payment, but, you can pre-pay the loan only after 6 months gestation period. The option is available (after 6 months) by paying some nominal changes.
  • Query- What is the ideal CIBIL score for applying the two wheeler loan?
    Reply- It's always advisable to apply for loan in early age same helps. The score of 750 and above is considered to be a good CIBIL score by most of the banks in totality. All it takes to get a better or improve the rating is to systematic and timely payment of your bills or EMIs.
  • How long does it take by a lender approved a two wheeler loan?
    Reply- In some of the loan cases can be approved on spot up at the same time in most cases loans are sanctioned within 48 hours to 72 hours.
  • Query- Whether I can get a loan without income proof?
    Reply- Finance up to 70% of the total cost can be approved without income documents to small medium enterprise and borrowers with clean loan repayment record in the past.
  • Query- What will happen if the borrower fails to pay EMI on time?
    Reply- If the borrower does not pay EMI on time; he/she will be charged a penalty @2.5% per month on the pending installation amount.
  • Query- Whether borrower need to hypothecate the vehicle?
    Reply- Absolutely yes the two wheeler purchased by the borrower need to be hypothecated to the bank or NBFC.

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