Two Wheeler Loan Eligibility Criteria

The most common method of buying a two-wheeler in India is by taking a loan from the bank or a non-banking financial company. Approximately over 80% of the two-wheeler is financed.

There are two types of two-wheeler loan:

• Secured loan: in this type of loan, security, or collateral is required to get a loan. The security can be in the form of your land, home, or any valuable asset. Most lenders keep the bike itself as a security. This means that the lender will legally own your bike if you fail to repay your loan. Also, in this case, the interest rate is less as the lender has less money on risk.

• Unsecured loan: this is the opposite of a secured loan. This loan doesn't require any kind of security or collateral. These are personal loan which is used to buy a bike. The two wheeler loan interest rate is very high on this type of loan as risk increases on these kinds of loans. So, to cover these risks, the bank charges a high amount of interest rate.

To apply for a two-wheeler loan, you must cover a few eligibility criteria:

• AGE:  the age of a loaner must be 21-65.

• EMPLOYMENT: For obvious reasons as in to give the EMI, the loaner must be employed in registered organization or shall be self-employed in a registered organization.

• EMPLOYMENT TENURE: The loaner must have completed 6-12 months of tenure in their current organization to indicate their permanency in the organization and job security.

• INCOME: the loaner must have an income of average 15,000 Rs

• If you think to get a loan for an expensive bike, then you are required to have a self-owned house.

• Lone tenure must be a minimum of 6 months and can be a maximum of 60 months.

• Maximum loan amount to sanctioned can be up to 95% of the total amount of the vehicle.

Factors affecting your loan eligibility:

• Credit score: credit score is directly proportional to eligibility. The higher your credit score, the higher will be your loan eligibility. Axis Bank Two Wheeler Loan is most preferred as it gives leniency to customers in case of credit score

• Previous loans: large unpaid dues will have a huge effect on your loan eligibility. This is because of the non-payment of the loan, your credit score decreases, you are considered as a defaulter.

• Income: income is also directly proportional to eligibility. The higher the income, the higher are your chances of eligibility. Higher-income can also lower your two-wheeler loan interest rate as the lender gets a little bit of assurance that the borrower will repay the money.

AlAlso read:- Should I go for a short or long tenure for a car loan?

Home loan myths

Just like there is a paranormal buster that busts the ghosts, today we are going to be your myth busters to help you bust some myths that are associated with home loans. These myths have been floating in the sea of logic for a long time. It was because of some Tom, Dick, and Harry that people began to put faith in these myths and thus started the chain of it. 

Now, for the sake of logic, we have brought to you five myths that revolve around home loans. If you come across someone who rubs these myths in your face, you can share this blog with them and then bust their myth too! 

High Down-Payment Concept!

There barely are schemes that ask you for a high down payment, banks do not ask you for a high down payment. So Mr. Myth can stop feeding lies to people, home loans don’t require huge down payments for them to be approved. Instead, they require all your correct documents. A person only needs to pay 15% of the 85% that he/she is going to borrow from the bank. This being said, it is not necessary that you only have to pay 15%, if you can make a higher down-payment then that could be fruitful for you. 

Take one if you need one! 

Please do not be a sheep you follow the herd even when it is full. At times these banks bombard you with emails, messages, calls, and tell you that you are eligible for a home loan. So what do you do, take a loan right away? No! You check with your situation and see whether you want a loan or not. The banks only lend you a loan, they do not pay it back on your behalf. See to it that you consider it with your family and then take a loan, because if you fail at its repayment then the consequences are faced by the entire family, not just you! 

Research like Sheldon Cooper!

Every bank states that their loans are the best, but in reality, you know what is best! So, see to it that you research all the schemes in the market and then choose one that fits you and your dream home. Every dealer or bank would give you exciting rates at the start but then they might even show you their true colors late if they are not registered. Take loans from trusted banks and schemes like Axis bank home loan. It also provides an exciting home loan interest rate.

Second hands are the real deal! 

India is a huge market for every kind of product, be it a first copy or a second copy. So, if you like a home that is second hand, and you want a loan for the same, go get it right now! Don’t let people tell you that you cannot take a loan for a second-hand home, because that is a full proof myth. Just see to it that your home is good and you are going to live in it for at least until you repay your debts. 

Also Read-Understanding a home loan

Two-wheeler loan application and disbursal process

Riding a two-wheeler provides you with a way of freedom and allows you to travel on your own terms. With a fast process and stripped work. Since you may be repaying your two-wheeler loan within the sort of EMI or Flexi EMI choice, it's vital to possess associate adequate monthly financial gain which will cowl the EMIs moreover as your alternative money commitments for the month. As such, the upper your monthly financial gain, the upper are going to be your two-wheeler loan eligibility and vice-versa. Meaning, with a high monthly financial gain, you may be eligible to borrow the next loan quantity and counter-wis.

Your credit report, having details of your past borrowings and repayments, maybe a reflection of United Nations agency you're as a recipient. supported the credit report, you're assigned a score called the CIBIL or credit score on a scale from 300 to 900. a coffee CIBIL score can portray you as an unsound recipient within the eyes of an investor and vice-versa. Lenders like that your credit score for bike loan is a minimum of 750 or higher than for loan sanctionative. a really low CIBIL score could altogether get your 2 wheeler application rejected. Union Bank of India Two Wheeler Loan provides you with a swish application procedure.

Once you offer all of your documents to the investor, it typically takes concerning twenty minutes to calculate the eligibility for the 2 Wheeler Loan quantity to be approved. The charge for a nominal process fee of three of the loan quantity with a minimum quantity of Rs five hundred. This keeps the loan terribly reasonable for the overall public. The processing fee ensures we tend to are ready to give the simplest interest rates for the general public and build it a fast and straightforward method to urge a loan. it's a 1-time charge thus you're not needed to hold the burden everywhere your loan tenure.

You are not needed to pay the processing fee out of your pocket. The fee is subtracted from the loan quantity throughout the disbursal of the loan quantity in your checking account. as an example, if your disbursed quantity is Rs 15000 the processing fee charged is going to be Rs five hundred and not third-dimensional of the loan quantity. However, if your sanctioned loan quantity is Rs 80000, the processing fee charged are going to be third-dimensional of Rs 80,000, ie Rs. 2400. it'll be subtracted from the loan quantity before the number is attributable to your checking account.

The application method is simple and may be completed in minutes through our application portal on the web site itself. It makes it easier for North American country and also the customers to confirm the fast approval of loan and disbursal at intervals twenty-four hrs. you'll get your loan quantity attributable to your checking account by the tip of the day if you applied for the loan throughout the morning session. we tend to keep the entire method paperless and hassle-free creating it easier for you to urge a loan from a lender.

Also read this: Availing Loan Facility For Payment of Medical Bills