2 WHEELER INSURANCE

2 WHEELER INSURANCE FORM

WHAT IS 2 WHEELER INSURANCE?

The two-wheeler loan helps you to buy a motorcycle or scooter of your choice and pay for it in equated monthly installments (EMI). Two-wheeler loans are available for both salaried and self-employed persons. … Once your loan application is approved you can ride out with a two wheeler of your choice.

2 WHEELER INSURANCE- APPLY IN QUICK AND EASY WAY

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Two Wheeler Loan Interest Rates

Two-wheeler interest rates are variable, based on the bank as well as a range of other factors such as your chosen tenure, your credit report and even the vehicle you have chosen to buy. The rates generally vary between a minimum of 11% to 18.25% p.a. Apart from your interest rate, you will need to check your processing fee and other charges in order to determine the total expenses of your loan. You can negotiate the interest rate with your lender if you have a credit score or if you have some other way to prove your good repayment ability. …

Two-Wheeler Loan Eligibility

Banks do not give loans for your vehicle on your face value. In fact, nowadays, banks are extremely careful about making sure that their customers are able to pay up their loans. This is especially due to the rising debt rate among youngsters in the country. Hence, they have a general set of eligibility criteria for two wheeler loans, among which the following are the most important to cover.

The following table shows the general eligibility criteria for certain factors. These details can differ from bank to bank. You can check with your lender before you apply for a loan. …

Particulars Eligibility Criteria
Age 18 or 21 years to 65 years
Employment status Salaried or self-employed
Preferred credit score 750 and above
Employment tenure At least 6 months in the same job
Minimum income Pretty low
Residential stability Applicant should be residing in the same space to show residential stability
Permanent telephone number Required

Why Should I Choose a Two-Wheeler Loan?

Given the growing number of private cars in urban areas in India, one might think that the transportation of the rural sector could also have a similar trend. The fact is that most rural demographers can buy a two-wheeler vehicle, mainly because of the availability of credit for buying it. But the bikes feature are not the only factors that make these loans a popular finance product in India:

  • There is a better resale value in the long run against two-wheeler vehicles and, therefore, once your loan is repaid, you can think of a new vehicle already.
  • Many people in India have the money to buy entry level motorcycles or scooters at one go. But it will be very much suffering, in terms of finances for the family. Also, a part of the lump sum that they have is can be used to buy mutual funds, fixed deposits or even two-wheeler insurance or to invest in other investment products. In other words, it helps to reduce the burden of buying a vehicle in a single month.
  • A lot of people cannot buy vehicles unless they are allowed to pay installments and most of the buyers fall into this demographic. Two Wheeler finance allows the borrowers to pay the EMI comfortably. In addition, they have very low maintenance cost compared to four-wheel vehicles. The consumption of mileage or fuel is also better to buy it in a more convenient way.
  • The Indian debt market has many options as banks to choose with competitive interest rates and even throw in combos taken together for loans and insurance packages. Some also come with the benefit of payment through post-dated cheques.

Documentation Required for Bike Loan Applications

It is important to remember that with every eligibility criterion that needs to be covered, there is a need to prove the bank through a document. Based on these aspects, the following are the most basic documents that may need to be presented with your loan application in order to ensure positive results on your loan approval:

Particulars Documentation Required
Photo identity proof Passport-size photographs, at least 2 to 6 are recommended to be kept handy for your loan application.
Identity proof Any one of the following:

  • Passport
  • Electoral Voter Identity card
  • Driving License
  • PAN Card
  • Aadhar Card
Address proof Permanent address proof: PAN card, Driving License
Temporary address proof: Bills against your name
Employment proof For salaried employees:

  • Employment or offer letter
  • Bank statements
  • Salary slips

For self-employed individuals:

  • Latest Form 16
  • Bank statements
  • Proof of their source of income

Two-Wheeler Loan Fees and Charges

Whenever you plan to apply for a two-wheeler loan, you have to consider the fees and charges associated with it. You cannot ignore these charges. If you look at the real cost of the loan, you will not find the right idea about your loan expenses. With interest rate, you need to compare fees and charges for each loan too. This will help you choose the right bike loan according to your preferences and requirements. Let us take a look at some of the common fees and fees that you will need to pay for your bike loan:

1. Processing fees¬†–

Processing fee is charged for processing the request for loan and it is mandatory for most banks. They, too, are generally calculated in the percentage of the total loan amount. It is also necessary to note that this fee is non-refundable under any conditions. The amount charged varies from bank to bank but ignoring this number often allows people to pay more for their loans.

2. Prepayment fees –

It is alleged under the circumstances where people have been able to pay the payment beforehand and sometimes even pay the remaining loan amount first. For bike loans, this charge is usually very low and sometimes is also non-existent.

3. Late-payment fees –

As the name suggests, this fee can be avoided easily, with little planning. The borrower is generally charged when the due date for loan repayment crosses, usually a real consequence of financial crisis or lack of funds. However, banks charge fees regardless of circumstances.

4. Charges for conversion –

This fee is charged if you want to change your two-wheeler loan from a floating rate calculation to a fixed rate or vice versa. It is essentially a fee for switching, depending on your needs. In other words, it is a resilience fee.

5. Copy of an account statement –

Sometimes people might need a statement for their current statement for loans. Although most banks do not charge you to get a copy of the same, there may be some banks that can charge a nominal fee for the same hard copy.

6. Administrative fee –

It is often a very cheat name for this fee because it is often confused with the processing charge. This charge takes care of the administrative cost of the bank to process your loan, which is not part of the processing fee.

FREQUENTLY ASKED QUESTIONS

Absolutely not. In fact, with the representative from the bank available in the showroom showroom in the case of the dealership, many times will take care of the loan considerations. And, you can apply online. While some require soft copies of the loan documentation, others will simply send a bank representative to gather documentation and even discuss the product with you.

The only way you can find it out is by calculating your finances, both currently and for the future. To do this, use an EMI calculator and get an approximate number in your head for monthly payments. Once you think you can afford it, you should stop nothing, unless you have an awesome credit history.

Various banks provide various margins of finance. While some you can only offer 80% margin, do not be surprised when you get 90% cover as well. It is necessary to note that the above banks will offer you the full cost of your new vehicle, including the cost of the insurance and the same as luggage. …

Absolutely yes, since riding a two-wheeler has a lot at stake against riding a closed four-wheeler.

Yes, sure you can. You might be charged a nominal pre-payment charge for the same.