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

Two-wheelers are a necessity for every household in a country like India, thanks to the convenience it offers. Youno longer have to worry about the traffic congestion and the cramped parking spaces. Whether it is a swanky bike or a modest scooter, you can buy a vehicle of your choice with a two-wheeler loan. You can simply walk into the nearest dealership of your choice where you will meet thelender's representative, who will help you understand the amount of loan you can avail, based on your monthly income. However, even with this hassle-free process, it is possible that your application canbe rejectedmerely due to less homework on your part.

So, here is a simple step-by-step guide that will helpyou in getting your two wheeler loan approved.

Step 1 - Choose the right type of loan

Once you have decided what type of bike is suitable for your requirements, the next step would be to pick the loan. You need to pay attention tothe following factors to choose the right one:
 

1. Loan amount
2. EMI
3. Time required for disbursal of loan amount
4. Check if there are festive offers such as free gifts, discounted price, insurance at nominal amount, etc., for select customers
5. Flexibility in the repayment process

 
While there is no foolproof way to choose the right loan, a lot will depend on the above-mentioned parameters,your ability to part with your liquidity currently, andother financial obligations. Make sure tocompare the rates offered against the market rate using loan comparison platforms.
         
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Step 2 - Check your eligibility for the loan

While it has become quite easy to avail a two-wheeler loan today, most financial institutions check the minimum requirements that an applicant have to fulfill in order to avail the loan. Here are the parameters that can affectyour eligibility:
 

1. Age of the applicant
2. Down payment
3. Monthly income
4. Source of income and stability
5. Interest rate
6. Residential stability

Before you apply for a two-wheeler loan, check whether or not you fulfill these criteria, as required by the desired lender.

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Step 3 - Assess your EMI

Once you have checked the eligibility and selected the right type of loan, calculate the EMI and assess whether it is conducive for you to commit for this monthly expense. Consider other obligations and set some funds aside for emergency contingencies before calculating the amount you can comfortably pay.
Some lenders offer loan for a higher duration for an EMI as low as a two-digit amount. However, if you can part with a higher amount on a monthly basis, do not stretch the loan tenure unnecessarily.
         
Step 4 - Keep your documents in place

Go through your documents properly before filling the two wheeler loan application form. Make provisions for arranging alternate documents in case any paperwork goes missing. Also, ensure that the documents are in line with your application form. Typically, you will require the following documents for a two-wheeler loan.
 

1. KYC documents
2. Statement
3. Latest salary slips or income proof
4. Latest Income Tax Return
    

ALSO READ:  The Ultimate Guide for Selecting the Desired Two-Wheeler 

Conclusion
Nothing beats the thrill of owning your favorite two-wheeler. If you have been thinking about buying one, there is no better time than now as lenders have become more sensitive towards the needs of their consumers. Many financial institutions are contributing towards developing a loan process that will weed out the unnecessary hurdles and make it easier for people to obtain a two-wheeler loan at an affordable interest rate.
Click here to go to our website and view more about two-wheeler loans.