Everything you want to know about Two Wheeler Loan
This is simply a particular loan structured for those who want to borrow money, purchase a two-wheel vehicle like a motorcycle, and pay back the money on the installment basis. Each bank has it is own set of rules for giving a two wheeler loan and once you are sure about the right process then things will be much easier for you. Each bank has got it own set of rules for allotting a two wheeler loan and also the documents required are slightly different and once you know them then things will be very different.
On the basis of law, Banks in India can primarily be classified as Scheduled Banks and Non-Scheduled Banks. Non-Scheduled Banks are rare as they require a minimal Reserve Capital of less than Rupees 5 lakhs. Very few banks function at such a small scale and can claim eligibility as a Non-Scheduled Bank. All other banks in India fall under the category of Scheduled Banks. For a bank to qualify as a Scheduled Bank, it needs to fulfill certain criteria. Amongst other criteria, and unlike a Non-Scheduled Bank, a Scheduled Bank needs to maintain a reserve capital of Rupees 5 lakhs in the Reserve Bank of India. The structure of scheduled banks in India is a hierarchical one with the Reserve Bank of India at the top, all the way down to the State Bank of India, associate banks and nationalized banks at the bottom.
The Reserve Bank of India is central to the Indian banking system and is in charge of the reserve capital for all Schedule Banks in India and was establish in the year 1935. The purpose and function of the Reserve Bank are clearly states in its preamble as being establish “to regulate issue of the banknotes and the keeping of all reserves for securing monetary stability and to operate credit system and currency of India to its benefit”.
Two Wheeler Loan Eligibility:
- Minimum applicant age of 18 years.
- Maximum applicant age of 65 years at maturity of loan.
- Statement of bank account.
Calculation of Two Wheeler Loan eligibility amount:
- For salaried workers, a minimum requirement of Rs. 60,000 to Rs. 75,000 of net income on annual basis is necessary.
- For the self-employed, same amount of Rs. 60,000 to Rs. 75,000 of net income on annual basis is necessary.
Two Wheeler Loan Down Payment:
Prepayment is compulsory to the range of about 10% to 20% of the total cost of the two-wheeler. For a 1 lakh bike 30-40,000 downpayment. every month 3-5000 through cheques,
Loan tenures are generally for a period of a year to three years. Although some may stretch theirs through a five year period Popular 1 [email protected]% 2years at 15% on the on-road price.
Interest rate bank wise:
Interest rate and charges come up to about 17%. Some banks can go down to as low as 11.5% though in the completion for prospective customers on the loan.
Top five banks providing Two Wheeler loan in India:
- Development Credit Bank.
- Bank of Maharashtra.
- KarurVyasa Bank (KVB).
- Canara Bank.
- Union Bank of India.
So if you want a two-wheeler loan do not wait any longer. Then just go to your desired bank and look for it and once you have it then things will be very simple. Getting this loan is not tough and that makes it very interesting to get one, and since the process is not tough and it is given in quick time. This is a very popular type of loan as most people need a two-wheeler and once you have it then you can travel, anywhere in quick time, as per your liking.