You may be eligible for 2 wheeler loan in India from one or more banks if you meet the following eligibility conditions:
2 wheeler Loan EMI is the amount that you pay every month to the bank or financial institution in order to repay your loan. EMI is composed of both principal amount and interest component. Interest component on your EMI is higher in early months and reduced with each EMI. Two wheeler Loan EMI Calculator helps you to calculate your monthly EMI at desired interest rate for a particular tenure.
To get best and lowest two wheeler loan interest rates online, read the do’s and don’ts mentioned below.
Why do I need two wheeler loan?
Two wheeler loans are usually taken to buy a new bike or used bike. Auto loan rates are given at fixed or floating rate. If you have a low CIBIL score, then you should not apply in multiple banks for 2 wheeler loan as each rejection will drop your CIBIL score.
How can I apply for two wheeler loan?
You can get a two-wheeler loan either by visiting the Bank’s branch or by applying online to the Bank or NBFCs. Other than that, a two-wheeler loan can be applied from any online marketplace like MyLoanCare.in. This can make your loan process easy and also could help you grab the best deal.
What is the minimum and maximum tenure of two wheeler loan?
Auto loan is generally taken for a short period of time. Generally, bike loan tenure is between 2 years to 5 years.
What are the charges for two wheeler finance?
Apart from rate of interest, there are two types of charges being charged by the banks.
- Two wheeler loan processing fee: This is charged when you apply for the loan. The processing fee charged on 2 wheeler loan is upto Rs. 1,000 of the loan amount and could be reduced if you can bargain.
- Two wheeler loan preclosure fee: This is charged when you close your loan before the completion of loan tenure. Prepayment penalty charged may be upto 3% of the outstanding amount.
Is CIBIL Score important?
Auto loan CIBIL score is very important. Good CIBIL score indicates good repayment record and hence banks can offer you higher loan amount at low rate of interest for two wheeler finance. Bad CIBIL Score will result in either loan at higher interest rate or rejection of the loan application.So, make all your payments on time and maintain your CIBIL in order to get best auto loan rates.
What is ex-showroom price and on road price?
Ex-showroom price is the price of the bike including excise duty but excluding local duties and statutory charges.
On road price is the price you pay for the two wheeler including the ex-showroom price and cost of registration, insurance, octroi, municipal entry tax, road tax and any accessories. The on road price tends to be 15-25% more than the ex-showroom price and may vary from city to city.
Do I need to open a bank account to service my 2 wheeler loan?
Yes, you need to have at least one functional bank account in your name to get an auto loan. It is even better if you have an account with the same bank from which you would like to get an auto Loan.
What are the main factors that affect interest rate of two wheeler loan?
Two wheeler loan lowest interest rate depends upon factors like down payment, loan tenure, credit report and your net income. High income with good CIBIL and maximum down payment can lend you loan at low interest rate.
How can I prevent rejection of my loan application?
Banks or NBFCs give two wheeler finance to those borrowers about whom they are sure that he/her can repay the loan. You need to know few things if you don’t want your application to get rejected:
- Job stability for 2 wheeler loan is important. You need to be stable in your current job as too many job changes can impact negatively at the time of loan approval
- You should not be having too many loans running at one time. Banks can reject your application if you are already paying too many EMI’s at same time.
- Don’t give you landline number for tele-verification if you know that nobody else is there at home when you are at work. A typing mistake in apartment number can also put negative impact on lenders.
Banks or lenders keep on adding these small things and reject your loan application.
What should I do if my auto loan application gets rejected by bank?
Some possible reasons why your application gets rejected are already running multiple loans and hence a bank may be in doubt about your repayment ability of a new loan.
- In this case, if you have a spouse who is also working, you can add him/her as a co-applicant to boost the combined salary levels.
- Clear your old debts first so that your leverage levels come down.
- Balance transfer of your existing loans so that the rate of interest on loans can come down and additional loan can be availed.
What is the interest rate on the bike loan?
The interest rate for a bike loan starts at 10.00%. The interest rates may vary across different Banks. Further, the interest factor is also dependent on the type of two-wheelers you wish to buy, the income of the applicant, age, and occupation.
How to finance a bike?
Opting for a bike loan is the easiest way to finance a bike. A variety of Banks and other lenders could provide you with funds to buy your dream bike. However, one needs to meet the essential eligibility criteria and documentation requirements.
Can a student get a bike loan?
A student can apply for a bike loan if he or she fulfills the basic eligibility criteria. An applicant must be a minimum of 21 years of age. However, the loan can be applied only with a co-applicant, who has a good CIBIL score and a fixed, reliable source of income.
How much can I pay as a down payment on a bike?
A down payment usually ranges from 15-30% of the two-wheeler value. However, it may vary across the lender. The amount of down payment made on the two-wheeler will decide the EMI of the bike loan. The bigger the down payment, the lower the EMI.