Know About the Top Eight Advantages Of Two-Wheeler Loans For Women

Our country's workforce structure has witnessed a drastic shift over the years. With various government-backed women empowerment programs and increased literacy among the female population, today many women are hailing the top positions in different workplaces. Be it the corporate space or the business world, there is no dearth of women leaders. The situation has also increased the popularity of a two-wheeler for commuting purposes, which in return has boosted the demand for a two-wheeler loan. The advantages of this loan product go far beyond easy accessibility. Here is the complete list.
 

Benefits of two-wheeler loan for women

 

1. Minimal paperwork

   Most working women avoid applying for a two-wheeler loan because they believe the application and documentation process is time-consuming. This is not the case with modern lenders. You can submit your application from the lender's website or use their online loan app. The documents required for loan approval are also minimal, as you will only need identity proof, address proof, and an income certificate.
    

2. Affordable interest rate

   If you are a woman, your lender may offer you a special rate of interest on your two-wheeler loan. Furthermore, this loan product is a secured form of financing, and the lender hypothecates your vehicle until the loan is fully repaid. Another factor that makes this loan affordable is that the rates are determined not just by your credit profile and income but also by the vehicle's resale value. The advice here is to be cautious when selecting your dream two-wheeler. Investigate the resale value of that scooter's previous model.
    

3. Higher loan amount

   The two-wheeler loan for ladies comes with a higher loan amount. Financial institutions typically offer this loan with a maximum loan-to-value ratio (LTV) of 95%. In terms of value, you can apply for this loan between Rs 10,000 and Rs 1,00,000. And you can easily find your dream scooter within this loan amount. This makes the down payment very less. But please note that you should always opt for a loan amount that’s as low as possible. Do not exhaust your limits or increase your financial burden unnecessarily. If you have the cash available, then increase the down payment to as much as possible.
    

4. Flexible repayment tenure

   Financial institutions these days offer flexible repayment tenure ranging from 12 to 48 months. It means you have the option of selecting the term with the lowest EMI. When applying for this loan, it is recommended that you use a two-wheeler loan EMI calculator and enter different combinations of variables (loan amount, interest rate, payback tenure) to find the most affordable EMI while keeping the interest payable within your budget.
    

Also Read: A Step-By-Step Guide to Getting Your Two-Wheeler Loan Application Approved

1. Special discounts

   No, we are not talking about an interest rate reduction but rather an offer from a dealership. Many two-wheeler manufacturers offer special discounts on vehicle prices if purchased in the name of a woman to promote women's empowerment. It saves you between Rs 2,000 and Rs 5,000 on the invoice price. The situation ultimately lowers the down payment amount. You can also check out special discounts on festive seasons and other offers that could help you get a staller deal.
    

2. Low-income requirement

   Whether you are a man or a woman, one benefit is available to all: easy access to funds across income levels. This loan requires the hypothecation of a bike. This provides additional security to the lender in the event of a default. Hence, the lender will grant this loan even if you have a monthly income of Rs 15,000 or less. Check out the eligibility criteria mentioned by different lenders, and do not go for the one that accepts minimum documentation or minimum salary. Also, check out the interest rates and other fees and make sure you go for the one that offers the best balance.
    

3. Helps in credit building

   Scooty loan EMIs are lower when compared to other loan products such as home loans, loans against property, or car loans. You can build a strong credit report and increase your future borrowing capacity if you have a solid repayment plan and pay off all of your dues on time. This is a great idea if you have never applied for a loan before.
    

4. Insurance cover

   A two-wheeler loan provides an additional benefit. The Motor Vehicle Act requires financial institutions to make loans that include the cost of third-party liability insurance as well as coverage for the rider's personal accident. Financial institutions/dealerships have partnered with multiple motor insurers to provide streamlined services. If you want to purchase comprehensive insurance for your vehicle, you may do so through the dealership.
    

Also Read: Tips To Pay Off The Two-wheeler Loan Faster
 

To conclude

Benefits for two-wheeler loans are available to all, regardless of gender. You only need to make sure you meet the lender's minimum qualifying criteria and have all of the necessary loan documents in order. Furthermore, if you want to get an affordable bike loan interest rate, consider the vehicle's resale value as well as your credit history.