Flexible two wheeler loans in Pune have helped many people fulfill their dream of buying a ride. You have the liberty to choose from a number of terms and down payment options to get the best financing options for you. Getting a two-wheeler loan is pretty easy these days, and with just a few simple steps, you can get your loan approved with a first-rate financing plan. The rate of interest on this loan is quite affordable and varies according to many attributes.
For a quick acceptance and disbursement of loans, you should have all of the essential documents for bike loan at the time of application. Aside from that, you must also consider a few other factors. We will provide you with a breakdown of all the critical facts for a simple approach to a two-wheeler loan so that you may boost your chances of receiving one.
How Does a Two-Wheeler Loan Work?
Two Wheeler Loans are the same as any other type of vehicle loan, such as new or used automobile loans. Then, the asset is pledged to a lender. After paying the final EMI, the lender gets from the creditor a “No Objection Certificate,” which is required for the hypothecation to be erased from the vehicle’s registration documentation.
A two-wheeler loan can provide you with a loan of up to ₹10,000 to ₹1,00,000 at a very competitive and low-interest rate, with up to 95% loan-to-value ratio, for a period of up to 48 months.
Why Choose a Two-Wheeler Loan?
If you are wondering why to choose a two-wheeler loan, then we will give you a bunch of reasons to tell you why a financing option is much better than an outright purchase.
- If you have enough funds, you can go for an outright purchase, but with the financing, you can purchase your two-wheeler on a small monthly income and save the remaining money in some other place for better benefits.
- The application procedure for two-wheeler loans is quick and simple, with minimal documents required, making it quite handy for you.
- Financing is sometimes packaged with plans and offers such as a cheaper interest rate, a reduced processing fee, insurance, and so on, which can give you great benefits.
- While most loans require a guarantor, two-wheeler loans typically do not, which speeds up the approval process making it hassle-free.
- Not only the process but the approval for this loan is pretty quick, so you can get your two-wheeler within no time with a considerably superior financing plan.
What Are the Eligibility Criteria for a Two-Wheeler Loan in Pune?
To be eligible for a two-wheeler loan in Pune, you must meet the eligibility conditions shown below.
- You must be of Indian nationality.
- You must attain the age of 18 or above.
- If you are a salaried person you must be employed for a minimum of one year, with at least six months in the present job.
- For self-employed professionals, the criteria are that you should have been in business for at least one year.
What Are the Required Documents for a Bike Loan?
You will require only a few documents for bike loan. Here is a list of all those documents.
- For KYC verification, you will need identity proof and address proof.
Identity proof includes: Any one of VotersID/ PAN card/ Ration card/ Driving licence/ Passport copy/ Aadhar Card
Address Proof includes: Any one of telephone bill/ electricity bill/ voters ID/ driving licence/ gas connection bill/ passport copy/ Rental agreement/ ration card
- Income evidence includes bank statements, pay stubs, and so forth.
- One passport-sized picture
The Interest Rate on a Two-Wheeler Loan
The interest rates on two-wheeler loans in Pune differ from one lender to the next. Thus, the rate of interest is typically determined by the following factors:
Credit Score: People with a strong credit score are more likely to be approved for loans with lower interest rates, and vice versa. Your past loan repayment history may also have an impact on your interest rate.
Lender-Borrower Connection: Your two-wheeler loan interest rate may be affected if you have a trustworthy relationship with the borrower as a consequence of strong payment history.
Monthly Earnings: If you have a good monthly income, this motivates lenders to make loans available to you at cheaper interest rates as your tendency to replay loans becomes greater at the same time. Plus, working for a reputable firm might also assist you in obtaining cheaper loan rates.
Loan Size: The interest rate is proportional to the loan amount. Interest rates for collateral-based loans are often lower.
Vehicle Type: The interest rate on a two-wheeler loan will also be determined by the type of vehicle you intend to purchase. The financier determines the interest rate based on the vehicle’s worth.
Loan Duration: Loans with shorter terms will have cheaper interest rates. The longer the term, the greater the interest rate and the total amount of interest paid.
Tier of the City: The interest rate on two-wheeler loans may also be affected by the tier to which your city belongs. To decide the interest rate at which the loan may be given, lenders assess the borrower’s credit score as well as the risk involved in the transaction from the city.
How to Apply for Two Wheeler Loan?
You can apply for a loan via both online and offline modes.
- Visit the website of your loan provider.
- Apply for a two-wheeler loan
- Fill in all the details and select the dealership from where you want to buy your vehicle
- Select all the checkboxes, agree to terms and conditions, and click on apply.
For offline mode:
- Visit the nearest two-wheeler dealership.
- Speak with a representative at the dealership about your desire.
- To complete the process, provide your KYC and income verification papers, and one passport-sized image.
The application procedure is rather basic, and once you have gathered all of the necessary documents for bike loan, you can quickly apply for a two wheeler loan in Pune through online and offline channels. Though both of these options are straightforward, for convenience, you should prefer the online mode, as it will help you save time and effort.