Two Wheeler Loans and Their Various Facts

A two-wheeler can be a great addition to your life, it provides freedom, comfort and convenience. The perks of using a two wheeler aren't limited to city roads or metropolitan areas, instead they are really useful even in distant towns/ villages, where a vast majority of India's population continues to stay. Motorcycles are one of the most affordable modes of conveyance requiring low maintenance and are extremely economical to run. This article will touch upon two wheeler financing and some of its key aspects.

Ways to Buy a Two Wheeler

Almost anything can be bought in two ways, either outright or through external financing (via a bank or financial institution). If you don't have sufficient spare cash, then one should avoid making an outright purchase and instead opt for monthly EMIs. Although this option would be slightly more expensive, but it would allow you to buy a two wheeler today, and make much smaller and more manageable monthly EMI payments.

Benefits of Availing a Two-Wheeler Loan

1. Up to 90% Financing: Loans usually range from Rs. 10,000/- to Rs. 1,00,000/-

2. Flexible Tenure Option: Flexible Tenure of up to 48 months

3. Lower Immediate Financial Burden: EMIs spread a large payment over several months or years

4. Convenience: Quick and easy application process, with near instant approvals. Hero FinCorp provides loan decisioning for most Two Wheeler Loans in under 15 minutes

5. Affordable: The relatively smaller loan amount and shorter tenure makes them highly affordable.

6. Availability: These loans are available for salaried, self-employed and business professionals

How to Get the Best Deal on your Two Wheeler Loan?

When finances are involved, one should search for and try to get the maximum possible discount. That being said, getting best deals for a two wheeler loan could strengthening and/ or  stabilising your financial position.

1. Higher monthly income, with a lower fixed outflow could help in getting a lower rate of interest

2. A loan may be bundled with an additional offer or add-on such as discounted processing fee/ insurance, etc.

3. Haggle hard, most lenders will try and sweeten the deal in order to make you their customer

4. Keep an out for festival offers and themes, especially during the Diwali/ Dussehra and New Year period

Eligibility >Eligibility & Documents Requiredamp; Documents Required

1. Age: The usual eligibility age is 18 years, but some Banks/ FI'smight ask for a minimum 21 years.

2. Stable Income: For getting a loan, a stable income is important. You may be salaried or self-employed.

3. Employment Tenure: To ensure income stability, most banks require you to be employed for at least a year.

4. Minimum Income: The minimum income depends upon the vehicle you are going to buy, and the bank that you are getting the loan from. Make sure to check this before applying.

5. Residential Requisite: To curb default, banks require at least one permanent address.

6. Good Credit Score: A good Credit Score is essential to get any loan, be it two wheeler, car or

7. Documentation: The following documents are required for applying for two-wheeler loans

   • Photo Identity & Address Proof (government issued photo ID card) - Aadhaar, Voter ID card, etc.

   • Employment Proof (like offer letter, appointment letter, salary slips, etc.)

   • Pan Card

In case you would like to know more about Two Wheeler Loans, then please refer to our earlier blogs linked below:

1. A ready guide to two-wheeler loans
2. How to decide the best motorcycle to purchase?
3. Buying a bike? Keep these points in mind
4. The basics of bike finance
5. Purchasing a bike on EMI