Updated on: 3 August 2023
Published on: 29 September 2020
It’s undeniable that getting your own vehicle brings a sense of freedom, and the first vehicle one generally owns is a two-wheeler. The experience of driving a two-wheeler is liberating, and in addition to being cost-effective, a two-wheeler is the perfect means of transport for everyone.
If you have been thinking of shelving away your dreams of owning a scooter or a bike just because you seem to lack the necessary funds or would rather put your funds aside for emergencies, we have some good news for you! You can achieve your dreams of owning a personal two-wheeler vehicle with the help of external financing in the form of 2-wheeler loans.
Read on for more about a two-wheeler vehicle loan, the eligibility criteria you need to meet, and more.
1. Two-Wheeler Loans are Safe and Affordable: Regulated by government and RBI guidelines, two-wheeler loans offered by various financial organisations in India are a transparent and secure option for you to get the two-wheeler you have been dreaming of.
Make sure you know all the associated charges and fees clearly before you apply instant loan and figure out your repayment beforehand as well.
2. You Get to Put Your Savings Aside for Emergencies: For the general populace, the cost of a two-wheeler is quite a substantial drag on resources. However, if you apply for a 2-wheeler loan instead of using your savings for a vehicle, you free up your existing funds. You can keep cash aside for emergencies as well as personal expenses.
Additionally, you can use the funds at hand to invest in instruments of your choice, like mutual fund schemes, stocks, insurance policies or other assets.
Now that you know bike loans (or scooter loans) are a safe and beneficial option, read our complete guide to taking a swift two-wheeler vehicle loan with ease.
If you are applying for a two-wheeler loan online for the first time, start by having a clear idea of the terminology associated with such loans. Here are common terms you need to know to plan your loan and select a lender.
1. Loan Amount: First up is the two-wheeler loan amount, and the title is pretty self-explanatory. This is the amount you will be borrowing and is also called the principal amount.
2. Loan Eligibility: Lenders check your two-wheeler loan eligibility to assess if you qualify for the loan amount you are applying for. To do this, they consider the cost of the two-wheeler of your choice and your repayment capabilities.
3. Repayment Capacity: How is your repayment capacity checked? Lenders look into your current monthly income and spending habits, as well as the records of any other loans you may have previously taken. Your repayment capacity directly affects your eligibility for taking a certain loan amount as a loan.
4. EMI: EMI is the acronym for Equated Monthly Instalment. This is the amount you will be expected to pay back to your lender every month. Each instalment of your two-wheeler loan EMI consists of a portion of your two-wheeler vehicle loan amount and the interest accumulating on the loan.
5. Interest Rate: This aforementioned interest being accrued on your principal amount is calculated on the basis of a fixed or floating percentage known as the interest rate.
6. Loan Tenure: This is the duration of your bike loan. The loan tenure is the number of months you would need to repay your loan amount comfortably.
7. Processing Fees: Finally, this is a fee you have to pay the lender for the processing of your two-wheeler loan application.
Now that the terminology is out of the way, here is how you should ideally plan for a two-wheeler loan.
If you are planning to take a two-wheeler loan, use this checklist to your advantage.
1. Check Your Loan Eligibility: Some of the standard criteria to get a two-wheeler loan in India include:
2. Research: With a wide range of two-wheeler loan choices available in the Indian market today, it becomes difficult to choose the best. Understand the benefits provided and eligibility terms set by a lender. Compare a few banks and NBFCs, and then select the one which suits your needs and preferences the best.
3. Calculate EMI: It’s critical to calculate the two-wheeler loan EMI before you initiate your credit application. Determining the monthly amount you would be paying during your loan tenure can help you better understand how a personal loan may affect your monthly expenses. This way, you can come up with a comfortable repayment plan.
Online lenders usually provide an EMI calculator so you can see what kind of amount you are likely to be paying monthly to repay your loan amount and interest. Calculating your two-wheeler loan’s EMI is incredibly simple. The Fibe EMI calculator, for instance, can calculate your two-wheeler loan EMI based on the details you feed into it.
With it, you can avoid manual calculations, as the calculator takes into account your loan amount, tenure and interest rates and determines your two-wheeler loan EMI. Using an EMI calculator before applying for your two-wheeler loan is a smart way to begin the process.
4. Have a Repayment Plan: Formulating a repayment plan beforehand can reduce a lot of stress for you. Along with planning your monthly budget for the loan tenure, put money aside for emergencies and don’t forget to count in the expenses of fuel and various other service charges related to your two-wheeler. This way, you can ensure you will pay your EMIs on time and without strain.
5. Know the Factors Affecting Interest Rates: While you cannot control the lender’s policies or economic climate, you can get a more competitive rate of interest on your two-wheeler loan. How? Make sure your financial standing is good and that you have a stable income. This will help you get the best rates on your two-wheeler loan.
6. When to Take The Loan: Finally, it is crucial to keep your eyes peeled for attractive discounts and offers, especially around festive times. This may allow you to avail of benefits like reduced processing fees and more, which will decrease your overall costs.
Finally, coming to the actual application process, here is a list of steps you need to follow to get a bike loan, online or offline.
Check out the guide below to get going with a two-wheeler loan.
1. Select the Lender: Consider factors like processing charges, interest rates, features, coverage, customer service and more. This will help you select the ideal lender for your two-wheeler loan – online or offline.
2. Confirm Loan Eligibility: Most online lending websites calculate your eligibility for a two-wheeler loan on their own, which makes the process a lot more straightforward. All you’d usually have to do is provide some information they ask for.
3. Apply: With most lending organisations, you can complete the application process for a two-wheeler loan entirely online. Most require you to fill in your personal and bank details as well as details about your two-wheeler. This includes on-road price, name of the dealer, RTO location and more.
Ideally, you should pick a lender who asks for minimal proof/documentation and offers quick processing for a hassle-free two-wheeler loan application process.
4. Submit Documentation: Finally, to complete your two-wheeler loan application, you’ll typically need to provide some or all of the following documents:
And there you have it! This concludes everything you need to know to apply for a two-wheeler loan.
A lot of us usually hesitate before getting a loan, assuming that it entails a complex and lengthy application and disbursal procedure, high-interest rates, processing fees and more. However, applying for a Fibe Two-Wheeler Loan is an instantaneous and hassle-free process. Even newly salaried employees and those without a salary slip can apply for the Fibe Two-Wheeler Loan.
In fact, the Fibe Two-Wheeler Loan comes with flexible repayment tenures and zero prepayment charges. Apply for it to get up to ₹5 lacs for your two-wheeler purchase. Moreover, we don’t require you to pledge collateral or ask for a down payment – unlike most traditional financial institutions. At Fibe, you can also benefit from a fixed interest rate during your entire repayment tenure. Lastly, you can complete your application for a Fibe Two-Wheeler Loan fully online.
The dream often starts from a two-wheeler and expands to other future investments and financial goals. Regardless of the variety of your aims, Fibe personal loans are here to help!
Usually, you need to show some evidence of your ability to repay the loan, which is why lenders ask for income proof.
To get a bike loan, you need to submit documents, such as your PAN card, passport-size photographs, your identity proof (Voter ID, Aadhaar Card, Passport, driver’s license) and your residence proof (Voter ID, Aadhaar Card). You also need to submit documents as income proof (salary slips or IT returns). In addition, lenders may require documents relating to the bike and its price.
The maximum tenure for a bike loan typically ranges between 1 year to 5 years.
You can take a personal loan for a two-wheeler from Fibe at affordable interest rate.
The bike loan eligibility criteria at Fibe require you to be an Indian resident. If you are a salaried employee, you need to be between the age of 21 years to 60 years, and if you are a self-employed individual, the maximum age limit can go up to 65 years. Also, you must have a minimum monthly income of ₹18,000 if you live in a metro city and ₹15,000 if you live in a non-metro city.
Two-wheeler loans are a great way of getting funds for purchasing your vehicle, and you can get a bike loan online or offline. Alternatively, you can get a personal loan from Fibe and use it towards purchasing your two-wheeler. These loans come with no restriction on end use along with other benefits.
Purchasing a two-wheeler from October through December can be a great decision. During these months, you get massive discounts due to the festive season, and dealers clear their inventories by offering money-saving deals.
Category : Auto Loan
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