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What is a two wheeler loan?
You have gone out for another late night party. The wait for an auto in those dark lanes is a real pain. Finally you got an auto. After circling half the city and reaching your doorstep you find he charges you more than what you spent on the party.
That is when you decide you need a new two wheeler. You don’t have the money and need to avail a two wheeler loan.
What is a two wheeler loan?
You can avail a two wheeler loan secured against the two wheeler. (The two wheeler is the collateral).You can also avail a two wheeler loan without a collateral. The bank would charge you a higher rate of interest if your two wheeler loan is unsecured.
What documents do you need to avail a two wheeler loan if you are salaried?
You need an identity proof:
- Pan card , Passport , Voters Identity or a Driver’s license.
- Passport, Voters Identity, Driver’s license, Utility bills (Electricity or a water bill) or a ration card.
- Your last 3 months salary slip or the Form 16.You might also need to show your bank statements of the last 3 months.
What is the eligibility criteria for availing two wheeler loans in India?
- You need to be between 18-60 years of age to avail a two wheeler loan in India. This is the age within which you are employed and can easily repay the loan.
- The bank asks you to make a down payment of around 15-20% of the cost of the two wheeler. You can avail a loan for the rest of the amount from the bank.
- You need to have a minimum salary of INR 60000-INR 84000 a year to avail a two wheeler loan. Many banks give you a clubbing facility where a father/son or father/daughter can avail a two wheeler loan by adding their income. A husband/wife can jointly avail a two wheeler loan.
- The loan tenure is generally for a period of 3-5 years within which you need to make your repayments.
- The bank would charge you a loan processing amount of around 1-3% of the loan amount borrowed. The documentation charges would be around 2-3% of the loan amount borrowed.
- You need to reside for at least 1 year in the city and at the area of residence where you have specified.
- You need to have a good Cibil score of above 700 so that you can easily avail your two wheeler loan.
- You need to file your ITR for at least 2 years.
What are the interest rates of a two wheeler loan?
The interest rates can be around 12-16% for the two wheeler loan you have availed from the bank.
Special schemes of a two wheeler loan:
- You can avail a two wheeler loan at a lower rate of interest in the festive seasons.
- Women get a discount on the interest when they avail a two wheeler loan under some special schemes.
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