A recent report indicated the two-wheeler industry in the country is expected to reach a volume CAGR of between 7 and 8 % due to positive conditions such as a favorable demographic profile, the increased participation of women in the workforce, and the growing middle class.1 A two-wheeler offers significant benefits to the buyer due to the following reasons:
Mileage: The price of petrol increased by 5 to 6 paise per litre in April 2019. The price hikes over the past few years have created significant hassles and made owning a vehicle a comparatively less affordable option. A two-wheeler offers better mileage as compared to four-wheelers as it can cover up to 40 km for each litre of petrol. However, this depends on the model and condition of the vehicle.
Maneuverability: A two-wheeler can be lighter and easier to use as compared to a four-wheeler especially with the traffic conditions in a large number of metro cities.
Convenience: Traffic congestion can cause severe delays due to the time taken to reach your destination. Two-wheelers can help you zip through traffic and save time even for shorter distances.
Parking: Parking can be a major issue in metro cities with fewer designated parking areas due to space constraints. A two-wheeler requires less parking space and can fit snugly into a tight space. It is an ideal option if you are looking to travel within the city.
Affordability: It is much more cost-effective to use a two-wheeler to travel as compared to a car or taxi. Two-wheelers also come with lower associated costs such as parking fees, toll fees, and expenses related to service and repair.
How to finance the purchase
Two-wheeler loans are a convenient way to purchase your new vehicle. They are specially designed to enable you to purchase the bike or scooter of your dreams. The loan is provided with attractive and flexible payment options and customized Equated Monthly Installments (EMIs) depending on your loan amount and tenure. Before selecting a loan product, you should browse through available plans on digital platforms such as Finserv MARKETS.
The portal offers some of the leading loan products in the market such as a Bajaj Finserv two-wheeler loan. A loan can enable you to make the purchase with deferred payments through EMIs. The EMIs are ideally large enough to cover for the loan amount and at the same time, ensure that you do not have to take up a major financial liability. Loan providers are now giving loans with zero down payment options to attract consumers. However, there are a few factors to consider while taking on a two-wheeler loan.
Where can you apply for a two-wheeler loan: You can browse through plans and select a loan product online or offline. The steps to access the loan, however, are quite similar. Before you apply for the loan, make sure that you have the requisite documentation in place and that you are eligible for the loan. Your loan provider will check your CIBIL credit score to verify creditworthiness and the likelihood of you making payments in time. Loan rejections and defaults can significantly impact your CIBIL score.
The eligibility criteria for two-wheeler loan: As two-wheeler loans are largely unsecured borrowings, companies are cautious while approving applications. The lender will ensure that you are capable of paying the loan and have a clear credit history. The general criteria include minimum and maximum age requirements, a credit score of 750 and above, and a minimum annual income. The criteria depends on your employment status (self-employed or salaried). A credit score below the requirement can lead to a higher rate of interest on your loan amount.
The documentation needed to avail two-wheeler loan: You need to review the terms and conditions on the policy document and website to know more on the requisite documentation. However, some of the general documentation needed to process the loan include identification proof (such as a PAN card, driving license, and more), proof of employment, last form 16 (if applicable), proof of income source, salary slips (if applicable), and bank statements for the previous months.
The interest rate for two-wheeler loan: The interest rate on your loan depends on your credit score, tenure, and the model and nature of the bike or scooter. The rate of interest can even differ depending on the loan provider.
Before you finalize on a plan, look at the safe and convenient options available on online portals such as Finserv MARKETS. While purchasing a policy offline has been a traditional option for accessing loans, digital platforms can help you get a loan within hours with minimal documentation requirements.
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere”!