From long trips to easy parking, a two-wheeler is an asset of every common man. Recognizing this widespread demand for two-wheelers, several lenders have come forward extending their financial assistance in buying a two-wheeler through a loan. Opting for two-wheeler loans not only help you address your needs with financial stability but also prevents buyers from shelling out their savings to purchase the vehicle.
Devised below is comprehensive coverage on two-wheeler loans, its features, and benefits.
Benefits of two-wheeler loans
1. Financial aids
Two-wheeler loans help lift off the necessities of paying a lump sum amount at one go. Through flexible repayment schemes provided by several lenders, applicants can choose to buy two-wheelers by paying a small amount through planned EMI repayment schemes. Applicants can compare and decide the best-suited lender using a two-wheeler EMI calculator. Lenders like Fullerton India provide loans at two-wheeler interest rates starting from 8% to 28% with flexible repayment schemes.
2. Improve your CIBIL scores
CIBIL scores are the reflection of the health of an applicant’s credit profile. High-end loans like home loans and four-wheeler loans require good credit scores for loan approval. Since the repayment amount involved with two-wheeler loans are less, applicants can easily build a strong credit profile through consistent repayment.
3. Savings for financial emergencies
The amount you save by opting for a two-wheeler loan can address your financial crises. By choosing flexible loan repayment schemes, you do not drain out your account and exhaust your savings.
4. Futuristic investments
The savings set aside for two-wheelers can now be utilized to create an investment for your future. Based on your risk appetite and goal, you can choose among the several investment options available in the market. Investments covered under section 80C not only help you save your money but also let you enjoy tax benefits under the old regime.
5. Tax benefits
Regardless of the employment type, one can claim the tax benefits on interest rates and depreciation from the vehicle owned, if owned for business.
Applicants can also claim deductions on their profits for fuel, maintenance, and loan repayments.
Procedure to apply for two-wheeler loans
With several advantages, as mentioned above, a two-wheeler loan not only helps you own your dream vehicle but also lessens the burden on your savings. With the demand increase on two-wheelers, several lenders have come forward to provide two-wheeler loans. Loans are sanctioned based on your employment, income profile, and age.
So how to choose the best lender?
The answer lies in your demand and interest rates you are looking forward to. Several lenders offer hassle-free loans at interest rates from 8% to 24% with flexible repayment schemes and minimal documentation. They also offer instant loan approval features synchronizing with the client’s needs.
The regulations put forward on eligibility requirements changes from lender to lender. Applicants can decide the best-suited lender through two-wheeler loan calculators. By comparing the interest rates and repayment schemes across lenders, applicants can make an informed decision.
Listed below are the eligibility criteria and documents required for two-wheeler loan approval that, as mentioned above, would vary from lender to lender.
- Age limits: 18 years to 65 years old
- Applicants can apply across Fullerton India branches across India. However, the applicant should be residing in the city of application for at least a year.
- The applicant should be employed for at least a year.
- ID proof documents which can include Passport, Voters ID card, Driving license, Employee ID card, PAN card and Ration card
- Address proof documents which can consist of Passport, Voter’s Id, Driving License, Rental Agreement, Electricity Bill, Telephone Bill, Gas Connection Bill, Ration Card, Sale Deed, Life Insurance Policy, Property Purchase Agreement, Letter from Company or Company provided accommodation
- Income proof:
- Salaried employee: Salary slip or Salary certificate
- Self-employed: Income tax return documents.
With several advantages and hassle-free processing, two-wheeler loans are boons. By choosing the right lender, with flexible two-wheeler interest rates, every applicant can own their dream vehicle without exhausting their hard-earned savings.