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Two-Wheeler Loans 101: Walk In, Ride Out

Clix September 12, 2019

Everyone craves for the innate comfort that comes with owning a vehicle. Having a hassle-free and faster means of transport is not just convenient – it also provides a sense of independence as well. Whether it’s the urban woman running errands or a farmer transporting harvests – two-wheelers are an indispensable asset for most Indian people.

Today, the majority of people in India prefer to avail a bike loan even if they have the required funds to purchase the vehicle outright. The reason for doing so is that this loan provides them with the option to pay back the amount in small installments, which ensures that the budget isn’t hampered in any manner. These installments are large enough to pay the loan but not large enough to put a significant financial dent on their funds. Two-wheelers are also a more convenient option to zip through the ever-growing traffic. As a result, two-wheeler bike loans are one of the best and most popular products of NBFCs, banks, and other such lenders.

What is a two-wheeler loan?

A two-wheeler loan, as the name suggests, is designed to ensure that the vast masses of the country are able to purchase their dream bike or scooter / scooty to go about their life. This loan is availed by individuals who purchase their preferred vehicle in attractive payment options and they have the option to choose between a secured and unsecured loan.  If one opts for a secured loan, collateral or guarantee needs to be pledged. It should also be noted that in most cases, a lower rate of interest is charged for a secured loan rather than an unsecured loan due to the higher risk involved in an unsecured loan.

Why go for a two-wheeler loan?

  1. Easy, Economical Convenient

One of the biggest advantages of a two-wheeler loan is that it can be maintained as per the borrower’s financial capacity. Moreover, one doesn’t have to spend a fortune on fuel maintenance charges either when it comes to two-wheelers. These types of vehicles generally come with more mileage than even the lowest of four-wheeler models, so you inevitably end up saving a lot of money in the process. Furthermore, now one can easily apply for this loan online from the comfort of their homes, waiving off tedious banking procedures in the process.

  1. Improves Credit Score

Two-wheeler loans are much easier to pay off within a short tenure, implying that the borrower can achieve a good credit score through timely repayments. So, if you have plans to take bigger loans in the future for purposes like higher education, purchasing a house, or even funding your marriage, then you should definitely consider getting this loan to build a decent credit score.

  1. Lesser Financial Burden

With instant two-wheeler loans, the borrower has the option to repay the loan amount as per their convenience, instead of making a huge one-time payment and burning a hole in their pockets. In fact, there are many NBFCs that allow the borrower to customize their repayment plan as per their monthly income and convenience.

  1. High Resale Value

Another significant advantage of a 2 wheeler finance is that it has a better resale value than that of four-wheelers. Hence, the borrower has the option to purchase a new model and replace the old one as soon as they are done paying off the loan, further incentivizing the notion of purchasing two-wheelers.

  1. Additional Benefits

According to the Indian Motor Act, two-wheeler loans are sanctioned with an insurance cover of the vehicle. Moreover, the borrower has the option to pre-pay the loan as well if they have a sudden inflow of cash without worrying about any debilitating prepayment charges that might arise as a result.

Two-wheeler Loans: Eligibility Criteria

At Clix Capital, we aim to make the loan application process as smooth and hassle-free as possible. We only ask that you meet the following criteria:

– Indian resident

– Between 18 to 65 years of age

– Salaried or self-employed

– Holding a clear financial history

We don’t want to overwhelm you by asking for too much paperwork. We just require the most basic forms of documentation, like:

– Complete application form

– Proof of address

– Identity proof

– Age proof

– Passport-size photograph

– Signed application form

– Bank statement justifying the salary

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