Riding a bike is a thrilling experience. It offers you a sense of liberty and confidence. Bikes enable you to quickly negotiate congested roads, take on tough mountainous road excursions, and demonstrate your riding skills on empty roads. Overall, the Zen experience you receive from riding in an open-air is incomparable. In addition to the joy of riding, having your own bike offers countless benefits. However, many people are unable to buy their dream bikes due to budgetary restrictions. Many financial institutions are now giving instant two-wheeler loan online approval to help customers get the finances they need to purchase their dream bike.
However, before applying for this loan, you should be aware of the elements that influence two-wheeler loan online approval, as well as the required two-wheeler loan documents.
7 Factors that Affect Two-Wheeler Loan Online Approval
Your earning potential is one of the most important elements that a lending organisation evaluates when making a two-wheeler loan online approval decision. In general, a secure job and consistent income demonstrate your financial stability and ability to repay. Though, unlike other loans, you do not need a higher income to acquire funds for your bike purchase, your higher income does influence your loan interest rate and approval possibilities. Lenders believe the higher your earnings, the more likely you are to be able to afford and repay the loan.
So, to boost your approval chances and to get a low-interest loan, try improving your income. If you have any additional or secondary source of income, make sure to mention that on your application.
This point goes without saying. Almost every borrower understands how their credit score and credit history affect their chances of getting a loan. Credit score or history is the key element that gives a lending institution an overview of your previous loan repayment history. It also assists lenders to understand your willingness or ability to repay the loan amount.
If you have a decent credit score and high creditworthiness, the chances of getting approved for a bike loan is very high. In case you have a low score, make an effort to raise it. If you discover an error on your credit report, contact your lender or write to the credit bureau to get the inaccuracy corrected.
Your Employer’s Status
Even though the bike is hypothecated with the lender until the loan is repaid in full. Financial institutions are still interested in your employer’s status. If someone says that working for a reputable organisation comes. With more benefits than just the brand, they are not wrong. This is because your employer’s status also represents your repayment potential. Working in a prestigious company ensures that your job is secure and your salary is credited on time. Some financial institutions even have special lending policies for people who work for specific organisations.
Loan Tenure and Amount
The loan tenure refers to the period in which you need to pay off your entire. Principal loan amount along with interest. In general, if you choose a longer repayment period and your loan amount is significantly higher. The lender will divide the repayment amount into smaller EMIs, but your interest rate will be higher. In contrast to the prior scenario, if the borrower borrows a small amount for a short period of time, the EMI will be larger. But the interest rate and other loan fees will be reduced.
To select the ideal loan amount and the ideal tenure, always use a bike loan calculator. It will help you to determine what EMI is within your budget and how much you can afford to pay towards the interest component. So, to get instant two-wheeler loan online approval, fill the desired loan amount and tenure on your application wisely.
Two-Wheeler Loan Documents
To get the speedy two-wheeler loan online approval, you must make yourself aware of the key two-wheeler loan documents. The following is a list of the documents you will need to apply for this loan.
- Identity Proof: PAN Card/ Aadhar Card/ Driving License/ Job Card issued by PSU, Central Government, or State Government/ Voter ID Card/ Passport
- Address Proof: Utility Bill/ Passport/ Property or Municipal Tax Receipt/ Aadhar Card/ Driving Licence/ Aadhar Card/ Bank Account Statement
- Income Proof: Recent Income Tax Returns (ITR), Salary Slip, Bank Account Statement
- Passport size photograph
The documents might vary from one lending institution to the next.
In order to receive an instant two-wheeler loan online approval, you must lower the credit risk attached to your profile. And to do so, simply increase the down payment amount. The down payment is the sum paid to the dealer upfront out of one’s own pocket, with the remainder being paid by the lender via the bike loan. The higher the down payment, the lower will be the credit risk, and vice versa. To get instant approval and if your budget allows, try to pay 40-50% of the bike value as a down payment.
Under this loan, the bike is hypothecated with the lender. A higher down payment puts more of your money at risk rather than the lender’s, and if you default, you will be the one who will lose more. As a result, the situation ensures the lender that you will make your payments on schedule.
Bike’s resale value is another crucial aspect that impacts your two-wheeler loan online approval. The higher the resale value, the lower will be the credit risk. In the event of default, the bikes with higher resale value allow the lender to recover full or the major portion of their debts at the auction.
Having your own bike is an all different experience that cannot be expressed in words. Bikes are not only a convenient mode of transportation on Indian roadways but are also cost-effective. To buy a bike on loan, you should use a calculator and know the EMI ahead of time so you know what you can afford. Now that you have learned about the aspects that affect the two-wheeler loan online approval, you may apply for the one that best fits your needs.