6 Factors To Consider While Comparing Two Wheeler Loans

Two-wheelers give you a sense of freedom that is rarely matched in its experience. Swerving through traffic and reaching your destination in short times is a feeling that every adult is familiar with. Having a personal commuting vehicle means that you have the freedom to go to places that otherwise would be difficult to go to.

If you have a bike or a scooter on your mind that you’d like to purchase, monetary constraints won’t let you then come to the right place. Bajaj Auto Finance offers Two-Wheeler Loa

n with a short and straightforward procedure and is also dispersed very easily. With the added benefit of the 100% financing, owning a two-wheeler has never been easier.

Here are few things to consider before you apply for a loan

●          Amount of loan

There are a minimum and maximum amount a lender is willing to lend. You must find a lender that would be comfortable with the amount you might need; when you do so, make sure that you double-check whether they are willing to provide that kind of loan amount or not.

This might be a concern for availing a small loan of like under a lakh, but when you want to buy a superbike, then it might be a hassle.

●          Down Payment

The down payment is the amount that one puts down as a lump sum towards the loan repayment. The down payment depends on whether the loan is secured or unsecured. Some lenders will go for 100% financing, too, but many will be happy to finance at least 70 or 80% of it. In such a case, you will only need to pay the remaining amount as the down payment.

●          Loan Term

This is the tenure of your loan. The loan term is the amount of time you have to repay the financial organization with interest in your EMI. The duration varies from lender to lender, but in the case of a two-wheeler loan, it can usually be from 3 months to 3 years. Your tenure will also depend on the amount that you have borrowed. We would advise you to go for a longer tenure as it reduces the EMI substantially. Always use a Bike EMI Calculator to check how much your EMI will be affected if you have a short tenure or extended tenure. Factor in variable costs too and pick a period that would be easy on you.

●          Interest Rate

Interest Rate is a huge factor when you are buying a vehicle. The rate of interest can either make or break the deal. Most lenders have different prices, and it is in your best interest to look for the lowest one preferable. After selecting a lender, you can choose either a fixed interest rate or a variable one.

Fixed Interest Rate is not subject to market risks and remains stable for the entirety of the loan.

Variable Interest Rate, also known as floating interest rate, keeps fluctuating following the market index.

●          Fees

Besides a non-recurring processing fee, a lender will have a variety of charges that can be levied on you like late payment fees, prepayment charges, and bounce fees. The amount can vary from lender to lender, so make sure to have a good look at these costs.

 

Documents: While applying a two-wheeler loan keeps your documents ready. Here are the mentioned documents:-

 

Salaried Person:

●          ID Proof: Passport /Photo credit Card/Pan Card /Driver's License /Voter's ID/Aadhaar Card/ Identity card with applicant’s photograph issued by Central/ State Government Departments, PSU.

●          Two recent passport size photographs

●          Address Proof: Passport/Driver's License /Voter's ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be digital papers released by PSU, MNC Banks, or Pvt Sector only. / Property or Municipal Tax receipt; Address evidence in the name of the applicant's parents or spouse name is acceptable

●          Last 3 month's salary slips/ Form 16/Latest ITR

●          Last 3 month's bank statement is mandatory

 

Self Employed:

●          ID Proof: Passport /Pan Card/Driver's License/Voter's ID/Aadhaar Card

●          Two recent passport size photographs

●          Address Proof: Passport/Driver's License /Voter's ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector, or MNC Banks only. (All banks except corporation bank)/  Property or Municipal Tax receipt; Address proof in the name of the applicant's spouse or parents name is acceptable

●          Latest Income Tax Return (ITR)

●          Last 3 month's bank statement is mandatory

●          Extras

If you get a raise or have some additional money coming in from a side business, you can prepay your loan. Ask the lender about this and make sure you know what the prepayment charges are. We at Bajaj Auto Finance strive to work towards your goals and dreams with our loans.