The perfect two-wheeler will provide you the flexibility to navigate congested roads to work, drive to a picnic location with pals, or give in to your wanderlust for a journey upwards without any worries. A newly acquired two-wheeler may endure for even more than 1 lakh kilometers.
You may apply for scooter or bike financing online with the required two-wheeler loan documents so there’s no need to put off your desire to buy a bike because of a lack of finances.
Making Plans for Your Two-Wheeler Loan
Though organizations such as Hero Fincorp; provide a rapid, no-hassle, easy-to-secure, and appealing two-wheeler loan, the necessity of studying and understanding what you’re getting into cannot be overstated.
Below are a few Things to Consider When Choosing the Best Two-Wheeler Loan Deal:
Prep for your purchase: You can get tempting deals and discounts during festivals and towards the end of the year. There are no processing costs and perks such as free insurance.
Knowing your loan eligibility: Most lending organizations consider your credit score. However, as previously stated, your repayment ability is used to determine the amount of the loan you are qualified for.
Considering the other requirements for eligibility: When you contact the lenders for a loan, there must be requirements for eligibility that you need to take into consideration, such as income and age.
Understanding Loan Terminology
Those who are new and want a loan for a two-wheeler -apply online with your ease but before that learn the terminology or words used by the lenders.
Loan Amount – This is the amount you borrow; it is also known as the primary amount. The loan amount you request takes into account the price of the two-wheeler as well as your repayment capacity.
Interest Rate – The interest that the borrower is anticipated to pay on the principal amount is determined using a percentage that is known as an interest rate.
EMI, or Equated Monthly Instalment: It is the monthly payment that the borrower is obliged to make to the lender. With each payment, you repay a portion of the loan’s principle as well as interest.
Loan Tenure – This is typically the number of months you have to repay the loan amount. You can select a tenure period ranging from 12 to 48 months.
Repayment Capacity – Your current income and spending, as well as any other debts you have, are used to determine your repayment capacity. It assists in calculating the EMI you can comfortably pay for the entire period. Your loan eligibility is directly related to your payback capacity.
Making a Repayment Schedule
Making a monthly budget is essential to ensuring that you can pay the EMIs on time. Following are some actions you can organize your payback by :
- Contact the customer service agent so they can assist you with the repayment schedule.
- Utilize the loan calculator online. You could choose the amount of the loan, interest rate, and tenure using this simple tool to determine the EMI. The EMI shouldn’t cause you financial hardship right now.
- Include petrol and other expenses. Be sure to take into account the expense of fuel, service fees, and other expenses when preparing your monthly budget.
- Create a contingency plan. A longer loan term is preferable, and you should set up cash for any additional costs you could face.
Keeping your two-wheeler loan documents in order
You must submit your documents by the RBI rules and procedures, as requested by the lenders. A list of the two-wheeler loan documents you must have on hand is provided below:
Required Documents for salaried employees
Mandatory Documents
- Properly completed loan application
- A colored passport-size photo
ID Verification (anyone)
- Driving Permit
- ID card, Aadhaar
- ID cards and passports are issued by the government, state, and public sector organizations.
Residence Evidence (anyone one)
- Driving License Municipal or Property Tax Receipt Passport Utility Bill Ration Card
Income Proof
- Salary slips (last six months)
- Last six months’ worth of bank statements (salary account)
- Certificate of salary
- Form 16
Job Security Guaranteed
- Current employer’s letter of the employment offer.
- Certification of experience from the previous company.
Age Verification(anyone)
- Birth Certificate PAN Card Passport Driving License.
Required Documents for a self-employed individual
- Properly completed loan application
- A colored passport-sized photo
ID Verification (anyone)
- License to drive, passport, PAN card, and Aadhaar card
Residence Evidence (anyone)
- Ration Card, Passport, Driver’s License, Utility Bill
Proof of Office Address (anyone)
- Rent Agreement Utility Bill Property Documents SSI or MSME Registration Certificate Maintenance Bill
Proof of Business Existence (anyone)
- Tax Registration Copies
- Proof of Shop Establishment
- Certificate of Company Registration
- Income Documentation
- Bank statement over the previous six months
- Recently Filed Income Tax Return (ITR)
Conclusion
As long as you match the eligibility requirements, getting a loan for a bike or scooter is simple. To make a well-informed decision, research interest rates, two-wheeler loan documents, and repayment capacity.
You can easily get a two-wheeler -apply online with Hero Fincorp and the loan will be available within a few hours.