Here is What You Need to Know About Two-Wheeler Loans

As the whole world is facing the consequences of COVID19, daily commute might be your share of the problem. Certain things are essential for living; you need to step out of the house to fulfill those requirements. Personal vehicles have become a priority these days. Why not two-wheelers for daily mobility? Two-wheelers are convenient to travel within the city, with no jam breaks. Many vehicle finance companies can help you with your monetary subjects. 

You can easily avail of a two-wheeler loan if you are a salaried or self-reliant individual. This will help you to pay the whole amount in small installments and won't pinch your pocket at all. But you need to pay the interest and the borrowed amount every month through EMI's. The EMI's are calculated by vehicle finance calculator.

The two-wheeler loan market is expected to have a CAGR of 11%, in the next five years. It is expected to cross 12.3 billion by 2025. 

Two-wheelers are widely used by centennials or people born between 1997 to 2015. The young generation prefers riding a motorbike, as it is convenient and cheap to maintain. 

Eligibility Criteria 

All finance companies in Mumbai need a minimum age of 21 years to sanction a loan. You are bound to repay the loan till the age of 60. If you are self-employed, you will get an additional five years to repay the amount. 

Possess a decent CIBIL score of around 700-750, before financing your vehicle. Banks can stipulate a minimum income for sanctioning the loan. According to the current market, a minimum income ranging from 72000 to 1.5 lakh p.a is required. 

It is advised to have a permanent job for at least one year, before taking a vehicle loan. You need to stick to the existing line of business for one year if you are self-employed. 

Documents Required for a two-wheeler loan

To process your loan, all top nbfc companies in India need some specific documents. As identity proof, a self-attested copy of the PAN card is mandatory. You need to submit a self-attested copy of your Voter ID or Passport as address proof. 

If you are a self-employed individual, the bank can ask you to submit some extra documents. Present your business profit and loss statement and balance sheet. You also need to submit the last two years of the income tax return. Financial institutions analyze your business stability before sanctioning a vehicle loan.

A salaried individual needs to submit salary slips and bank statements of at least three months. Bank will also need a copy of the latest Income Tax Return and a few passport size photographs. Fill the application form correctly for a hassle-free loan process. 

Conclusion 

Some NBC companies in Mumbai offer vehicle loans at low-interest rates. Choose a financial institution and visit their online portal. Look for an option where they send an executive to your doorstep.

You can also calculate the EMI through the vehicle loan calculator and

vehicle loan interest rate.