Important points to keep in mind before applying for a two-wheeler loan

If you want to get somewhere quickly, a two-wheeler is the best solution. Two-wheelers make mobility easy and can help you navigate through the city easily. However, two-wheelers or any vehicle are expensive to afford for most families in India. The best option to help you afford a two-wheeler is to get a loan for a two-wheeler. A loan for two-wheelers will ease of the burden off your pockets. A loan for a two-wheeler is a hassle-free process, quick and easy to comply with. 

With the multiple options available in the market for two-wheelers, you can get the two-wheeler of your choice with assistance from a loan for a two-wheeler. 

Here are some key points that you need to know before applying for a loan for two wheeler:

1. Loans are provided for both types of vehicles, i.e. brand new vehicle as well as a second hand one. You can approach a lender and avail of a loan online as well. The process is quick, and since the entire process is online, you are saved from further trouble. In addition to this, if all your documents are appropriate, you may receive your funds within 24 hours.

2. A loan for two-wheelers is a type of personal loan. Personal loans are unsecured in nature, and they do not require you to pledge any asset as collateral. These loans can be availed for a sum of Rs. 10 lakhs. The tenure of repayment ranges from a year to 5 years. 

3. The verification process is quite simple. Apart from your regular KYC documents and personal identity proofs, you need to submit your income statement for approval. You need to upload these documents on the website of the lender. On average, you need to earn Rs. 20,000 or more in tier 1cities and Rs. 15,000 or more in tier 2 cities.

4. Another critical point that you need to cover is scouting for various offers and reading the fine print of the loan documents. Understand the jargon and all the terms used, compare multiple offers that are offered to you by various dealerships and select the best one. 

5. You need to calculate your costs too. Costs like loan processing fees, understanding repayment schedules, understanding the foreclosure policy as well as the penalties they may impose, the EMI calculation and tenure. At times when you choose a longer tenure, you end up paying much higher than expected when all the EMIs are totalled up. 

6. You need to make sure you have some surplus funds set aside so that when in a particular month, if you are not able to meet the payment terms, these funds can rescue you and prevent you from breaking any conditions of the loan for two wheeler. 

You need to be alert as well as aware. A customer who is aware of the product, the service, his rights, and the market is smart and careful. These customers make life easier for the ones on the opposite end too.