Two wheelers are popular among Indians since they are affordable and make it easy to move through traffic. Choosing a four-wheeled alternative may be simple for some. Those who cannot spare their cash exclusively for transportation can still get this quick means of transportation using easy loans. Obtaining a two wheeler loans isn’t all that tough with the help of the internet.
A two wheeler loan is easily accessible and may be obtained by simply pressing a few buttons. If you decide to apply for a two wheeler loan, many crucial details must be confirmed first. People often question how they can select the loan term while getting this loan. Tenor plays an important role if you want the lowest two wheeler loan interest rate.
Consider all the factors, such as the interest rate on the bike loan, the tenor, the EMIs, etc. Consider these factors in advance to make the most of your loan application. The interest rate applied to the loan repayment and the loan amounts are two of the most important factors. Even tenor becomes a crucial issue that may affect your repayment schedule and amount.
The process of deciding the Tenure for a Two wheeler loan?
Tenor is a factor that directly affects the interest rate and EMI percentage paid for the loan borrowed. Decide what kind of tenor you want to keep your payments simple and hassle-free before applying for the loan. The duration you choose for repaying the loan could change several factors. Every two wheeler loan comes with a specific range and duration.
- Longer tenure- The EMI amount decreases if you choose a longer loan tenor. This leads to more of these payback transactions. You end up paying a higher interest rate as a result.
- Shorter tenure- The amount of EMI repayment will be higher if you choose a shorter tenor. But there will be fewer of these transactions overall. These decreased numbers of transactions might result in a comparatively reduced interest rate.
- Choice of EMIs- Calculating monthly repayments is the most efficient and effective way to comprehend your preferred payment tenor. Use a two wheeler loan EMI calculator to determine what a certain estimate of the monthly payments should be. Choose a shorter tenor when you can afford large EMI amounts. Choose a longer tenor when you are out of budget to pay larger EMIs.
- Repayment of EMIs- Read all terms and considerations before deciding how to settle the loan. Take care of how long it will take to return your two wheeler loan. Two years is recommended as the maximum extended term that may be requested. It benefits the debtor to be released from their loan commitments quickly.
Two wheeler loan interest rates:
The second most important thing after tenor is the interest rate. Financial institutions determine bike loan interest rates after considering the applicant’s financial situation and history.
Financial institutions offer attractive and desirable interest rates to forge long-term customer relationships. They decide the interest rate based on a person’s profile and historical repayment history. The applicant’s credit score has a significant impact on the interest rate that is given. A bad credit history would result in a higher interest rate and vice versa. Best credit lines like a two wheeler loan from Bajaj Finserv offer an annual interest rate of up to 9.25% to 14%.
Two wheeler loan eligibility:
Consider the eligibility criteria mentioned by your lender after considering loan tenor and interest rate. Here are some requirements that you must meet to qualify for a two wheeler loan in India:
- Salaried individuals, self-employed people, pensioners, professionals, students, and homemakers are eligible to apply for this loan.
- The age range while applying for a two wheeler loan is between 21 and 60 years for working professionals. Self-employed individuals’ age must fall between 21 years and 65 years.
- Lenders set a minimum earning amount depending on whether the applicant resides in a metro or non-metro city. The applicant must earn that much money per year to be eligible to apply for a two wheeler loan.
- Your business or home must have a landline phone connection. Your address must be constant for at least a year.