One can finance a two-wheeler in India with the help of a two-wheeler loan that can be applied for from a bank or Non-Banking Financial Company (NBFC).
Why a two-wheeler loan?
1 This is because most banks and Non-Banking Finance Companies (NBFCs) finance 100% of the two-wheeler’s on-road price, which is very beneficial for the customer as this implies that no down payment is needed which is easy on one’s pocket.
2 The loan amount in most cases is inclusive of the registration of the two-wheeler and insurance cover for the same. This is also advantageous as one can repay all this in monthly instalments without having to pay for the same in one shot.
3 Interest rates are comparatively lower as a two-wheeler loan is a form of secured loan, wherein the vehicle itself is considered as security. The interest rates begin at just 9% and can go up to 26% based on the credit profile of the individual and a few other factors, such as relationship with the bank, employment and income.
4 The tenures for a two-wheeler loan are usually only up to 4 years. Some banks or NBFCs offer 5 years for a two-wheeler loan, but it is not very common. You can choose a tenure based on personal preference. The longer the tenure, the more the outflow of money towards the interest.
5 There are pre-approved two-wheeler loans that are now available for existing customers of certain banks. These loans are instantly approved and disbursed to one’s bank account.
6 Most two-wheeler showrooms have tie-ups with different banks or lenders for two-wheeler loans and these loans can be applied for from the showroom itself, thereby making it very easy for the customer to buy the vehicle.
7 Documentation for a two-wheeler loan is very simple, minimal and speedy.
8 Some banks offer special low-down payments and EMI schemes for customers for easy repayment of the loan.
To apply for a two-wheeler loan, click here.