When it comes to buying a 2-wheeler, a two-wheeler loan is a convenient way to finance your purchase. However, many people often wonder about the maximum loan amount they can get for their two-wheeler loan. Here's a detailed guide on the maximum loan amount you can avail for a two-wheeler loan and how to apply for it.
Two-wheeler loan basics:
A two-wheeler loan is a personal loan that can be used to purchase a new or used 2-wheeler. The maximum loan amount for a two-wheeler loan varies depending on several factors, including your credit score, income, employment history, and the price of the 2-wheeler. Generally, banks and financial institutions offer loans of up to 85-90% of the on-road price of the 2-wheeler.
For example, if the on-road price of the 2-wheeler is ₹1,00,000, the maximum loan amount you can get is around ₹90,000, subject to your eligibility criteria. It is important to note that if you have a high credit score, you may be eligible for a higher loan amount at a lower interest rate.
Types of two-wheeler loans:
1. Secured Loans: A secured two-wheeler loan requires the borrower to provide security or collateral as an assurance of repayment. In this case, the 2-wheeler itself serves as the collateral. Secured two-wheeler loans have a lower interest rate as there is reduced risk for the lender.
2. Unsecured Loan: An unsecured two-wheeler loan is a type of loan that does not require the borrower to put forth any type of security or collateral. These loans usually have higher interest rates but do not require any collateral.
3. Pre-owned two-wheeler Loan: Banks and financial institutions also offer pre-owned or used two-wheeler loans. In this case, the loan amount is based on the 2-wheeler's value, and the maximum loan amount may depend on the age of the vehicle.
4. Low-cost two-wheeler loans: Low-cost two-wheeler loans offer a zero or low down-payment option to potential borrowers with the assurance of reduced interest rates on the loan amount.
5. Two-wheeler overdraft: A two-wheeler overdraft is a type of loan wherein the borrower, after availing a loan for the 2-wheeler, can use it as a credit line to access additional funds as per their financial requirements.
Steps to apply for a two-wheeler loan:
Applying for a two-wheeler loan is easy. Here's a step-by-step guide:
1. Research Lenders: First, research reputed lenders that offer the best deals on two-wheeler loans.
2. Check Eligibility Criteria: Check the eligibility criteria to ensure you qualify for the loan.
3. Gather Required Documents: Gather the required documents, including ID proof, income proof, and address proof, among others.
4. Apply Online or Offline: You can apply for a two-wheeler loan online through the lender's website.
5. Submit the Application: Provide all the details and submit the application.
6. Get Approval: The lender will then review your application and provide the required loan amount if it satisfies their criteria.
Some of the Financial Institutions offering Two-wheeler Loans:
1. HDFC Bank - HDFC Bank provides convenient finance options with minimum documentation and faster disbursal of loans.
2. ICICI Bank - ICICI Bank offers loans for both new and pre-owned 2-wheelers and provides several value-added services at no additional cost.
3. State Bank of India - State Bank of India offers flexible repayment options and faster loan disbursals.
4. Axis Bank - Axis Bank offers loans for both salaried and self-employed candidates.
5. Kotak Mahindra Bank - Kotak Mahindra Bank offers loans for purchasing new and used two-wheelers.
Some of the Non-Financial Institutions offering Two-wheeler Loans:
1. Bajaj Finserv - Bajaj Finserv is a popular lender for two-wheeler loans. With Bajaj Finserv, you can get a two-wheeler loan of up to 100% of the on-road price of the two-wheeler. It offers flexible tenures of up to 5 years, allowing customers the flexibility to repay their loans over an extended period as well as immediate approvals of loans.
2. Hero FinCorp - Leading multi-billion-dollar financing company that provides customizable loans with minimal documentation.
3. TVS Credit Services - Founded in 1982 as a subsidiary of TVS & Sons, it offers hassle-free finance options, no hidden charges, and quick approvals.
4. Mahindra & Mahindra Financial Services Limited - One of the leading non-banking financial companies in India provides loans and insurance coverage.
5. Capital First - Capital First, offers attractive rates of interest and provides the customer with up to 100% funding of the bike's on-road price.
In conclusion, the maximum loan amount for a two-wheeler loan depends on various factors such as your eligibility, credit score, etc. It is always helpful to research multiple lenders and look for the best deal for you.
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