Two Wheeler Loan Online
Purchasing a two-wheeler is like a dream come true for many Indian middle-class people. Some high-end sports-model bikes are as expensive as four-wheelers. This is when they apply for a two-wheeler loan to fund the purchase rather than exhausting their savings. These days, NBFCs have made bike loans easily accessible to the masses. Some even offer zero down payment bike loans, which means the borrowers need not pay a single extra penny from their pocket.
An applicant who fulfills their eligibility conditions and furnishes the required documents will not find any difficulty getting a two-wheeler loan online approval. Let us take a look at how loan approval works and tips to improve your chances.
Steps for Two Wheeler Loan Approval
Here are the steps to get instant approval on two wheeler loan – Check Eligibility, Gather Documents, Calculate EMIs, and Apply for a Bike Loan.
While looking for a bike loan, start with checking the lender’s eligibility criterion. Most lenders’ eligibility conditions include the applicant’s age, income, employment, and credit rating. Although simple, the applicants must meet the requirements to move to the next step.
The lender will ask for a few essential documents to verify your identity, income, and residence. These include KYC documents, salary slips, bank statements, ITR, etc. The bike papers will stay with the lender as collateral until you pay off the loan. There is no need to visit the lender’s office to submit these documents. It is possible to scan and upload them through the lender’s website or app and get instant approval.
Before accepting the loan offer, it is crucial to calculate the bike EMI amount to ensure timely payment. Most lenders have flexible repayment terms. Use a bike loan EMI calculator to find the amount you are comfortable paying each month. Accordingly, select a loan term with easily affordable EMIs.
Apply for a Bike Loan
Visit the lender’s website, fill in the required details, upload the necessary documents, and submit the application form. Check if you qualify for a zero-down payment bike loan. Once applied, the lender will check the credentials and send a loan agreement. If you accept the loan offer, they give you instant two-wheeler loan online approval and disbursal within 24 hours.
Tips to Improve Chances of Bike Loan Approval
The above section showed how easy it is to apply for a bike loan and get approval. Now it’s time to find a few tips to improve the chances of approval with better terms and conditions.
Make a Bigger Down Payment:
The more you borrow, the harder the approval becomes. So, start saving early and make a bigger down payment. Doing this will improve the chances of approval and also prevent unnecessary loan burdens. Depending on eligibility, an applicant might qualify for a bigger loan amount or a zero down payment bike loan. However, it’s wiser to borrow minimum to reduce the total loan cost.
Maintain a High Credit Rating:
The lender checks the applicant’s credit score to see their repayment history and determine their credibility. They decide the interest rate and loan amount according to this parameter. Applicants with a high CIBIL score get easier two-wheeler loan online approval with a bigger loan amount and lower interest rate. Therefore, stay consistent with EMI and credit card bill payments, use credit cards judiciously, and lengthen your credit history to maintain a high credit rating.
Reduce Financial Obligations:
Lenders do not easily approve loans for applicants with a high debt-to-income ratio. Those having high financial obligations each month have higher chances of missing bike EMI and defaulting on the loan. Therefore, pay off any existing debts before taking a new loan. DTI ratio of less than 30-40% will improve the chances of approval at better interest rates.
Avoid Multiple Loan Applications:
Many people who want to buy their dream bike quickly apply for several loans simultaneously. Their strategy is to get approval from several lenders, compare their loan offers, and pick the best one suitable to their needs. However, little do they know that each loan application attracts a hard inquiry on their credit report. Several hard inquiries pose them as credit-hungry borrowers, leading to rejection from all the lenders. Besides that, they also end up hurting their credit score in the long run.
Therefore, the best trick is to compare lenders before applying and look at their terms and conditions. Apply to one lender that best suits your eligibility. Choosing a lender carefully improves the chances of quick approval at the best rates.
Getting a two-wheeler loan online approval is not hard at all. The tips mentioned above will further improve your chances of approval and attract better interest rates and conditions. With easy and fast approval available online these days, you may own your dream bike without further delay.