The rising population in metro cities, heavy traffic and lack of available parking space have increased the popularity of two-wheelers in urban cities.Having a two-wheeler gives you the freedom of commuting anywhere and anytime without facing the hassle of waiting in long queues for buses and trains. If you are planning to purchase a two-wheeler for yourself, availing a two wheeler loan can be extremely helpful. As a result of the growing popularity of two-wheelers, a large number of financial institutions provide two wheeler loans with lucrative features and benefits. Below are some of the major advantages of availing a two wheeler loan to finance your two wheeler purchase.
Affordable interest rates
A loan with lowinterest rate is one of the most important factors to consider while availing a loan. Low interest rates can help you save a large amount of money in the long run. With leading banks and other Non-Banking Financial Company (NBFC), it is possible to avail a two wheeler loan at the most competitive interest rate. Your good credit history can make you eligible for a higher loan amount at a reduced interest rate.
Most of the financial institutions have lenient eligibility criteria for two wheeler loans. If you meet the required eligibility criteria, then you have high chances of quick approval of your two wheeler loan. Instant disbursal of the loan amount is yet another advantage of availing a two wheeler loan with a prominent financial institution.
Minimal Down Payment
Most banks and NBFCs offer financing up to 90% of the vehicle amount. Since you are required to pay a very less amount as down payment, the loan to value ratio increases significantly.
Easy application and less documentation
It is possible to apply for a two wheeler loan online in a hassle-free manner. Since the process is digitized, the application process involves minimal documentation.
Low prepayment charges
Most financial institutions also give you the option to prepay your loan. The prepayment charges of two wheeler loans are lower as compared to other financing options.
You can also estimate your monthly EMIs with the help of online EMI calculator. This will enable you to plan your monthly budget accordingly. Before applying for a two wheeler loan, make sure that you keep all these factors in mind.
Improve your credit score – Financial institutions check your credit score before approving your two-wheeler loan. A high credit score will improve the chances of your loan approval. Therefore, it is recommended that you should boost your credit score by clearing outstanding dues before applying for a two-wheeler loan.
Compare various loan offers– Comparing various deals offered by different financial institutions will help you find a two wheeler loan that best suits your needs. You should also research the financial institution you are opting for.
Lastly, do not forget to read the terms and conditions of your loan agreement before signing it. This will help you avoid any inconvenience in the later stages.