How To Secure a Two-wheeler Loan Successfully in India?

With growing traffic in cities, owning a two-wheeler is a smart way to get around quickly and easily. Whether it’s for commuting to work, college, or daily errands, a scooter or bike offers a practical solution. If buying a two-wheeler seems out of your budget, a Two-Wheeler Loan, also called a bike loan, can help. This blog will explore the bike loan procedure and how Muthoot Capital makes it simple and affordable to own your dream two-wheeler.

Eligibility for a Two-Wheeler Loan in India

You can apply for a Two-Wheeler Loan to purchase a motorcycle or bike, whether you are salaried or self-employed. The loan amount is borrowed and repaid in monthly instalments or EMIs, which include interest. Muthoot Capital approves the loan based on the price of the two-wheeler, the EMI you can afford, and the interest that decreases with each payment.

Before applying for a bike loan, you must check the eligibility criteria for a 2-wheeler loan in India. The eligibility requirements are:

• You must be a resident Indian citizen.
• You must be at least 18 years of age at the time of loan application and no more than 65 years of age at the time of loan maturity.
• If you are salaried, you should have a minimum annual income of Rs. 96,000. If self-employed, your minimum annual profit should be Rs. 1,20,000.
• You must submit all relevant documents, including KYC, Aadhaar/PAN card, and other necessary identification proofs.

Once you determine if you satisfy all the eligibility requirements, you can calculate the exact amount you will need to pay as EMI. You can calculate this amount through the bike loan EMI calculator online tool.

Understand Loan Terms

Loan Amount
This is the amount you borrow, known as the principal. It is calculated based on the cost of the two-wheeler and your ability to repay.

Interest Rate
The interest rate is the percentage of the principal amount that you need to pay in addition to the borrowed amount.

EMI
EMI (Equated Monthly Instalment) is the fixed amount you pay every month, covering both the principal and interest.

Loan Tenure
This refers to the period within which you must repay the loan, typically ranging from 12 to 48 months.

Repayment Capacity
Your repayment capacity is assessed based on your income, expenses, and any other existing loans.

Read More : How to get a Pre-Approved Loan for Two Wheeler?

Factors to Consider Before Taking a Two-Wheeler Loan

Before applying for a Two-Wheeler Loan, it’s important to carefully assess your options and ensure you’re making an informed financial decision. Here are some key factors to keep in mind:

• Look for Seasonal or Festive Offers: Take advantage of discounts and special offers available during festive seasons to reduce the overall cost of your bike.
• Avoid Over-Borrowing: Borrow only what you can comfortably repay. Over-borrowing can lead to financial strain and difficulty in repayment.
• Clear Existing Debts: Pay off any outstanding loans or credit card debts before applying for a Two-Wheeler Loan. This will improve your chances of approval and reduce your financial burden.
• Opt for Flexible EMI Plans: Choose a loan with flexible EMI options that align with your budget. Making a larger down payment can help lower your monthly payments.
• Select a Convenient Loan Tenure: A longer repayment tenure can make your EMIs more affordable, but be mindful of the overall interest you will pay over time.
• Check for Additional Charges: Review any extra costs, such as processing fees, late payment charges, or prepayment penalties, to avoid unexpected expenses.

Steps to Take a Two-wheeler Loan

To apply for a Two-Wheeler Loan online, follow this bike loan process:

• Check Your Eligibility: Ensure you meet the eligibility criteria before applying for the loan. This will help streamline the process.
• Calculate Your EMI: Use the online EMI calculator on the Muthoot Capital website to determine the Two-Wheeler Loan EMI amount you’ll be paying.
• Click ‘Apply Now’: Once you’re ready, click on the ‘Apply Now’ button to begin your loan application.
• Fill in the Application Form: Complete the application form with the required details to initiate the process.
• Submit Documents: Provide essential documents like identity proof, address proof, and bank statements to support your application.
• Verification: Once your credentials are verified, a Muthoot Capital representative will get in touch with you to guide you through the next steps.

A Two-Wheeler Loan has a simple application process and fast approval. Once approved, the disbursement is quick, allowing you to take your bike home and enjoy hassle-free commuting.

Read More : Steps to Calculate Two Wheeler Loan EMI

Conclusion

A Two-Wheeler Loan is the preferred way to get your dream bike or scooter. To ensure a smooth process, ensure you meet the eligibility criteria, understand your EMI, and check the necessary documentation. Whether you’re looking for scooty finance or a bike loan, it’s important to be aware of the bike loan procedure, the minimum age for a bike loan, and the minimum CIBIL score for a bike loan approval. By staying informed, you can secure your Two-Wheeler Loan easily and quickly.

FAQs

What is the minimum age for a bike loan?

The minimum age for applying for a bike loan is 18 years.

What is the minimum CIBIL score for a bike loan?

A CIBIL score of 750 and above is generally required to qualify for a bike loan.

How can I apply for a bike loan?

You can apply online through our website by following the simple bike loan process or by visiting a branch with the required documents.

What documents are required for a Two-Wheeler Loan?

You will need to submit identity proof (Aadhaar/PAN card), address proof, income proof, and bank statements.

Can I get a bike loan if I am self-employed?

Yes, self-employed individuals can apply for a bike loan as long as they meet the eligibility criteria.

Is there an age limit for repayment of a bike loan?

Yes, you must be at least 65 years old at the time of loan maturity.

How long does it take to process a bike loan?

Typically, a bike loan can be processed within a few business days after all the necessary documents are submitted.

What is the maximum tenure for a Two-Wheeler Loan?

The loan tenure can range from 12 to 48 months, depending on your eligibility and lender’s policies.

Can I get a loan for purchasing a scooty?

Yes, you can avail of scooty finance or a bike loan for purchasing a scooter, provided you meet the eligibility requirements.

What are the extra charges associated with a Two-Wheeler Loan?

There may be processing fees, prepayment charges, late payment fees, or administrative charges, depending on the lender’s policies. To know about the extra charges associated with a Two-Wheeler Loan, you can visit our website.