Questions To Ask Before Applying For A Two-Wheeler Loan
Whether an office, a ride with friends or a crowded place, a two-wheeler is always the top priority. Two-wheelers always come handy and are easy to get on a loan. The rate of interest on a bike varies according to different factors such as income, job stability, old loans, past performance etc.
But, if you are taking a loan for the first time, you must have many questions regarding two-wheeler loan and two-wheeler interest rate. Well, do not worry as we have got you covered here.
In this article, we will answer some most asked questions by the customers and put you out of your misery. So, relax and enjoy the read.
Two-Wheeler Loan Eligibility
First, we are listing the eligibility criteria required to get a two wheeler loans. These are:
- It would help if you were salaried or self-employed.
- Your age at the time of the loan should be at least 21 years and at the end tenure 60 years or 65 in case of self-employed.
- Minimum 1-year job experience.
- Minimum 96,000 p.a. for a salaried person and 1,20,000 p.a. for a self-employed.
Documents Required for Two-Wheeler Loan
The following are the documents required to be submitted by the customer:
- Any valid id proofs
- Valid address proof
- Income proof: bank statement/form 16/ITR form/payslip
- Asset proof: land/building/house tax receipt
- The Latest passport size photo
Questions to Ask Yourself or Know things Before Applying for a Two-Wheeler Loan?
● What type of loan should I go for?
There are two types of vehicle loan in India- Secured and Unsecured. In Secured loan, you give the papers of your asset as a security, and in Unsecured loan, no asset security is required, but the interest rate is very high.
● How much loan amount should I take?
While a bike loan is readily available, do not over-borrow. It can derail your monthly expenses, and you may bounce your EMI and default. It is not the right image if you want credit in the future.
● Any fees I should be aware of?
The bank charges loan processing fee, late payment fees in case of default and some bank charges prepayment fee if you wish to end the loan before the tenure.
● What is ‘’Two-wheeler Hypothecation’’?
It is a process in which the vehicle purchased acts as a security against the repayment of the loan. When the loan is over, and all the EMIs are paid, do not forget to cancel the hypothecation by showing the bank your repayment slip and the vehicle will be yours fully.
● What are the benefits of taking a two-wheeler loan?
Owning a two-wheeler has been this easy. With a little amount of help from a financial institution, say Muthootcap, you can get the bike of your dreams. It provides asset and non-asset-based loan, up to 100% of on-road price loan, flexible repayment options, attractive interest rates, quick approval, hassle-free documentation and much more. Even if you can buy the bike at a one-time payment, it can jerk you financially.
Here are the essential things that need to be known before going for a two-wheeler loan. If you are still not satisfied, you can go to the official website of Muthootcap or Muthoot Finance here you can get all the details about two-wheeler loans. Get your dream bike; now is the time to vroom.