Defining A two-wheeler loan in layman's terms

The COVID- 19 pandemic has overpowered you to move from public transport to private transportation. You cannot travel even by a shared taxi. Should you purchase a scooter/bike or a car? Before reaching a decision, consider the statistics. In the Indian Economy, 27 million in the age group of 20-30 years, lost employment in April.  It would assist if you held a salary cut before making the purchase. A brand new car takes a lot of funds. You could choose a pre-owned vehicle, but a brand-new motorcycle is a desirable option. It is suitable for traffic and simple to park in congested places.

Benefits of a two-wheeler loan

 

• The bank imposes a minor interest rate when connected to a personal loan. Banks may support the total price of your two-wheeler on-road cost.

• You can create a healthy credit score with on-time repayment of the loan. It assists you to get good rates on future loans. 

• Lenders sanction the loan, even if you hold a lower income. 

• You get a tax advantage on appealing a loan for an electric scooter from a financial firm. It is a tax reduction up to Rs 1.5 lakh yearly on the interest, in Section 80EEB of the Income Tax Act. The lender must approve the loan in between April 1, 2019, and March 31, 2023. 

Tips to get the right loan

 

• Communicate with the lender where you hold a bank account to receive a lower interest rate. 

• Purchase your two-wheeler through the festive season. Lenders have extra offers like complimentary insurance or nil processing charges.

• Consult with lenders for a lower rate if you possess a healthy credit score.

• Verify if your lender grants you to prepay the loan without extra fees. Review the charges, overdue payment charges and others.

• Select an extended loan duration to avoid grappling with the payment. 

• Focus on insurance and registration fees when purchasing a bike.

• Select a payment plan with adjustable EMIs to nevermore miss a payment. Make a huge down payment for a lesser repayment sum and duration. 

• Examine the complex clauses before confirming the loan contract. 

• Learn the conditions before signing the loan contract.

• RBL Bank Two Wheeler Loan provides low EMIs on the loan.

• Most lenders take a minimum age of 21 for the particular borrower and the maximum age must be is 60.

Features 

 

• Most lenders fund up to 90%-95% of the price of the bike.

• Lenders levy an interest rate beginning from 9.5%-17% per annum. 

• You need to pay the two-wheeler loan inside five years.

• You can receive pre-approved scooter/bike loans if you are a current customer of the bank.

• You can appeal for the scooter/bike loan online with minimal documentation.

Also read:- Amazing rights the Auto loan defaulters