Two-wheelers are a common form of transportation throughout India, not only in Kolkata. For those who only need to go a small distance, they provide a practical and economical solution. Financial institutions have begun providing two-wheeler loans to customers who want to buy a bike but do not have enough money to do so due to the increase in demand for two-wheelers.
This blog will talk about two-wheeler loans in Kolkata and the several things you should think about before applying.
Features of two-wheeler loans in Kolkata
- Typically, in order to qualify for a loan, you must be employed full-time or have your own business with a steady stream of income. Hero Fincorp does not, however, have set loan requirements. Your loan is approved through an electronic procedure.
- To apply for the 2 -wheeler loan, you must have a PAN card and an Aadhaar card; all other information is optional.
- You only need to take a selfie and send it to the app as legitimate identification as part of the KYC verification process.
- Let you choose from a variety of payback terms. In light of this, you are free to select a tenure that suits you.
Factors affecting a two-wheeler loan
- Credit score: The credit score of the borrower plays a crucial role in determining the 2-wheeler loan eligibility and interest rate.
- Income: The income of the borrower is a significant factor that determines the loan amount they are eligible for.
- Employment stability: Lenders prefer borrowers who have a stable source of income and a secure job.
- Age: Borrowers above a certain age are usually preferred by lenders as they are considered to be more financially stable.
- Type of two-wheeler: The type of two-wheeler the borrower is interested in financing also affects the loan amount and interest rate.
- Loan Tenure: The loan tenure also affects the interest rate, with a longer tenure typically attracting a higher interest rate.
- Down payment: The amount of down payment made by the borrower also affects the loan amount and interest rate.
- Market conditions: The overall market conditions and the performance of the two-wheeler industry also affects loan availability and interest rates.
- Lender: The terms and conditions offered by different lenders also vary, and it’s essential to compare the options before selecting the lender.
Advantages of two-wheeler loans in Kolkata
- Easy to apply: Two-wheeler loans are easy to apply for and can be availed in a short time.
- Low-interest rates: The interest rates for two-wheeler loans are relatively low, making them an affordable option for people.
- Long repayment tenure: The repayment tenure for two-wheeler loans can be extended up to 60 months, which makes it easy for people to repay the loan.
- No collateral required: Two-wheeler loans are unsecured loans, meaning you do not have to pledge any collateral to avail of the loan.
- Wide range of bikes: You can purchase any two-wheeler of your choice, whether it is a scooter, motorcycle, or geared bike.
Eligibility Criteria to get a two-wheeler loan
The eligibility criteria for a 2-wheeler loan are as follows:
- Age: The applicant must be between 21-65 years of age.
- Residency: The applicant must be a resident of India.
- Income: The applicant must have a minimum income of INR 15,000 per month.
- Employment: The applicant must be either a salaried employee, a self-employed individual, or a professional.
- Employment of Employment: The applicant must have a stable and verifiable employment record.
- Credit Score: The applicant must have a good credit score with no outstanding debt.
- Documentations: The applicant must submit all necessary documents such as ID proof, address proof, income proof, and loan application form.
How to apply for a two-wheeler loan?
- Research different financial institutions that offer 2-wheeler loans.
- Gather the required documents such as identity proof, income proof, and residence proof.
- Fill out the loan application form, either online or in-person at the bank.
- Submit the required documents and wait for the loan approval process to take place.
- If approved, the loan amount will be disbursed and you can use it to purchase your 2-wheeler.
Note: The requirements and procedures may vary depending on the financial institution and location. It is best to check with the bank directly for their specific requirements and procedures.
How to Improve Your Possibilities of Getting a Bike Loan
The following important considerations will help you have a better probability of receiving a two-wheeler loan in Kolkata
- Amount of the loan – Estimating the amount you need to borrow is the first step in obtaining a two-wheeler loan. Make inquiries and compare the costs of the bike and two-wheeler models you like to determine the least and maximum amount you require.
- EMI payment – Next, figure out how many EMI payments you must make each month. Check your monthly savings, costs, and income to see whether you can afford to make EMI payments.
- Credit Score, or CIBIL Score, is used to assess if a lender will approve your loan application. Your loan will be authorized swiftly if your CIBIL score is above 750. Your CIBIL score will be raised if you make your existing loan payments on time each month, don’t borrow more than 50% of your available credit, and don’t borrow money from several different lenders.
- Co-Applicant or Guarantee — If you don’t have a credit card or have a low credit score, you can seek a co-applicant or guarantor to help you receive loan approval.
In conclusion, two-wheeler loans in Kolkata have become a popular option for individuals looking to purchase a bike or scooter. The loan process is straightforward and convenient, and several banks and financial institutions offer attractive interest rates and flexible repayment options. With a two-wheeler loan, you can save on your monthly expenses, such as transportation costs, and enjoy the freedom and convenience of owning a bike or scooter. However, before applying for a two-wheeler loan, it’s important to assess your financial situation, consider the cost of the bike or scooter, and compare different loan options to find the one that best fits your needs.