Know the Key Benefits of Availing Two Wheeler Loan

A two-wheeler is often most Indians' first vehicle. This is because it is not just an affordable and convenient investment but is also much suited to Indian traffic and its loopholes. In urban and rural settings, it is one of the most dependable and popular forms of transport. However, while people may be more likely to know about home loans when it comes to personal loans or car loans, they are less likely to avail of a two-wheeler loan, despite its advantages. 

It is essential to be aware of such a loan because having a vehicle can make a huge difference in your life in terms of ease and comfort. It can even be seen as an investment in some ways. Knowing all the facts about two-wheeler loans and the tools available, such as a two-wheeler loan calculator, is necessary before taking out the loan. The advantages of taking a two wheeler loan are many, such as the ones listed below.

Key Benefits of Availing Two Wheeler Loan

  • Down payment

Financial institutions can cover up to 80% of the amount required to buy a two-wheeler. This takes a burden off from the down payment amount and is an excellent incentive for availing of this loan, as it does not erode your savings all at once. 

  • Loan tenure

Relative to other loans, a two-wheeler loan also has a longer duration. It can be repaid in about 12 to 36 months, which allows you to ensure that your finances are in place. 

  • Loan Processing

To apply for a two-wheeler loan, you must be in the age range of 21 to 58 years. In addition, you will be required to submit some documents. These documents are basic and include proof of income, identity, address, and so on. In some circumstances, proof other than income proof can also be sufficient. The process for availing of a two-wheeler loan is smooth and easy and can be approved within as little as two days after you have applied for it. 

  • Prepayment

Before you apply for a two-wheeler loan, you must check what the prepaid charges are like. If a large amount of money is availed during the loan tenure, you can repay this amount before the duration of the loan ends, at a small pre-closure charge. Therefore, it is important to ensure that the fee you pay for prepayment is nominal and not excessive.

  • Interest rates

While using a two wheeler loan calculator would give you a more accurate idea, the interest rates tend to be relatively lower. Repaying through Every Monthly Installment (EMI) is not a hassle. Additionally, the repayment schedule also tends to be flexible and does not cause stress. 

Two-wheeler loans are thus a great option if you are looking to invest in a vehicle without dealing with the hassles of taking a bigger loan. However, it is essential to only invest in a reliable and trusted financial institution. You may also have to be careful about the interest rates and ensure they aren't too high. It may also help to go through multiple options and interest rates before settling on one, as it could make a huge difference in how much you end up paying in the whole process. Keeping your specific financial situation and ability to repay in mind may be helpful in this regard. This is important to make the best use of your resources and keep your savings. 

It is also important to be aware of the additional charges that financial institutions may charge for processing, legal processes, or penalties. These may add up and increase the amount of money you would have to pay to take a loan. Doing some research by yourself, taking the opinion of an expert in this regard, reading through the terms and conditions yourself, and keeping your financial situation in mind while making a decision can make the process much better for you. With all of this information at your hand, and by finding the right lender, you may be able to live your dream of owning a two-wheeler.