Suppose you’re a recent college grad or a family man with obligations. In that case, whether in a rural area with little traffic or a bustling metropolis, most Indians rely on two-wheeled vehicles as their primary means of transportation.
To keep up with demand in a country as populous as India, the two-wheeler business has lowered prices and expanded available financing alternatives to appeal to buyers of all ages and socioeconomic backgrounds. Everything you need to know about two-wheeler loans in Chennai is included in this blog post.
Eligibility Criteria for Two Wheeler Loans in Chennai
The eligibility criteria for a two-wheeler loan vary from lender to lender. However, some of the standard eligibility criteria are:
- Age: The applicant must be at least Twenty years old and not more than Sixty Five years old.
- Residence: The applicant must be a resident of Chennai.
- Income: The applicant must have a steady source of income to repay the loan.
- Credit Score: A good credit score is essential for a two-wheeler loan.
Documents Required for Two Wheeler Loans in Chennai
The documents required for a two-wheeler loan in Chennai are as follows:
- Identity Proof: PAN Card, Aadhar Card, Voter ID, or Passport
- Address Proof: Aadhar Card, Voter ID, Passport, or Ration Card
- Income Proof: Salary slips, bank statements, and Form 16
- Two passport-size photographs
- Vehicle Quotation
Types of Two-Wheeler Loans in Chennai
Two types of two-wheeler loans in Chennai are secured and unsecured.
Secured Two Wheeler Loans
Secured two-wheeler loans require the applicant to provide collateral in the form of a property or a savings account. The collateral serves as security for the loan, and the lender can seize it if the borrower defaults. Secured two-wheeler loans have a lower interest rate and a longer repayment tenure than unsecured loans.
Unsecured Two Wheeler Loans
Unsecured two-wheeler loans do not require collateral. They are ideal for individuals who do not have collateral or are unwilling to risk their savings. The interest rate on unsecured two-wheeler loans is higher than on secured loans, and the repayment tenure is shorter.
Interest Rates for Two Wheeler Loans in Chennai
The interest rate for two-wheeler loans in Chennai varies from lender to lender. However, the interest rate for two-wheeler loans ranges from 12% to 16%. The interest rate depends on several factors, including the applicant’s credit score, income, and loan amount.
Repayment Tenure for Two Wheeler Loans in Chennai
The repayment tenure for two-wheeler loans in Chennai ranges from 12 to 48 months. The repayment tenure depends on the loan amount and the interest rate. The longer the repayment tenure, the lower the EMI (Equated Monthly Installment), but the higher the interest paid.
Tips for Availing Two Wheeler Loans in Chennai
Maintain a Good Credit Score
A good credit score is essential for availing two wheeler loans in Chennai. Keep your credit score in check by paying bills regularly on time and reducing credit card debt.
Compare Lenders and Interest Rates
Compare lenders and interest rates before availing of a two-wheeler loan. Choose the lender that offers the best interest rate and repayment terms.
Check the EMI
Calculate the EMI before availing of a two-wheeler loan. Ensure that the EMI fits within your budget and that you can repay the loan on time.
Read the Fine Print
Read the fine print before signing the loan agreement. Ensure that you realize the terms and conditions of the Bike loan, including the interest rate, repayment tenure, and any additional charges.
Benefits of Two Wheeler Loans in Chennai
Cost-effective
Two-wheeler loans are cost-effective compared to paying for the bike in cash. The loan amount can be spread over an extended period, reducing the burden on the applicant’s finances.
Easy Mobility
Two-wheeler loans provide easy mobility, enabling the applicant to commute to work or run tasks without depending on public transportation.
Improves Credit Score
Repaying a two-wheeler loan on time can improve the applicant’s credit score, making it easier for them to avail of loans in the future.
Flexible Repayment Options
Two-wheeler loans offer flexible repayment options, allowing the applicant to choose a repayment tenure that suits their financial situation.
Wide Range of Options
A wide range of options is available regarding two-wheeler loans in Chennai. The applicant can choose the lender and the loan that best suits their needs.
Secured two-wheeler loans require the applicant to provide collateral in the form of a property or a savings account. The collateral serves as security for the loan, and the lender can seize it if the borrower defaults. Secured two-wheeler loans have a lower interest rate and a longer repayment tenure than unsecured loans.
Unsecured Two Wheeler Loans
Unsecured two-wheeler loans do not require collateral. They are ideal for individuals who do not have collateral or are unwilling to risk their savings. The interest rate on unsecured two-wheeler loans is higher than on secured loans, and the repayment tenure is shorter.
Conclusion
Two-wheeler loans in Chennai are a convenient and cost-effective way to buy a bike. However, it is essential to consider the eligibility criteria, interest rate, repayment tenure, and the fine print before availing of a two-wheeler loan. Following the above tips in this blog, you can make an sound decision and select the best two-wheeler loan for your needs.