Two-Wheeler Loan Documents – Checklist Curated Just For You!

Two-Wheeler Loan Documents – Checklist Curated Just For You!

Written by Alinamass, In Business, Published On
December 29, 2022
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The ideal two-wheeler will provide you the freedom to worry-free negotiate congested routes to work, travel to a picnic place with friends, or give in to your wanderlust for an ascent. A recently purchased two-wheeler might last even longer than 1 lakh kilometers. There’s no need to put off your wish to purchase a bike due to a lack of funds because you can apply for two-wheeler or bike financing online with the necessary two-wheeler loan documents.

Though organizations such as Hero Fincorp; provide a rapid, no-hassle, easy-to-secure, and appealing two-wheeler loan, the necessity of studying and understanding what you’re getting into cannot be overstated.

Things to Consider When Choosing the Best Two-Wheeler Loan Deal:

Prepare for your purchase by keeping in mind that festivals at the end of the year sometimes offer enticing deals and discounts. There are benefits like free insurance and no processing fees.

Being aware of your loan eligibility Your credit score is taken into account by the majority of lenders. However, as was already said, the amount of the loan you are eligible for is based on your ability to repay it.

Taking into account the additional criteria for eligibility There must be qualifying restrictions that you must take into account when you contact the lending institutions for a loan, such as age and income.

Understanding Loan Terminology

Those who are new and want a loan for a two-wheeler apply online with your ease but before that learn the terminology or words used by the lenders.

Loan Amount – You borrow this sum, which is also referred to as the main sum. The loan amount you ask for takes into account both your ability to pay back the loan and the cost of the two-wheeler.

Interest Rate – An interest rate is a percentage that is used to calculate how much interest the borrower will be expected to pay on the principal amount.

EMI, or Equated Monthly Instalment: It is the monthly payment that the borrower is obliged to make to the lender. With each payment, you repay a portion of the loan’s principal as well as interest.

Loan Tenure – This is typically the number of months you have to repay the loan amount. You can select a tenure period ranging from 12 to 48 months.

Repayment Capacity – Your ability to repay a loan is based on your present income, expenses, and other debts that you may have. It helps you determine the EMI that you can comfortably pay throughout the course of the loan. Your ability to repay the loan directly affects your loan eligibility.

Making a Repayment Schedule

Making a monthly budget is essential to ensuring that you can pay the EMIs on time. Following are some actions you can organize your payback by :

  • Speak with a customer care representative to get help with the repayment arrangement.
  • Make use of the online loan calculator. Using this straightforward tool, you could select the loan amount, rate of interest, and tenure to calculate the EMI. You shouldn’t currently experience financial hardship due to the EMI.
  • Include petrol and additional costs. When creating your monthly budget, be careful to account for the cost of fuel, service charges, and other expenses.
  • Develop a backup plan. It is best to take out a loan with a longer period, and you should have budget for any potential extra expenses.

Keeping your two-wheeler loan documents in order

A list of the two-wheeler loan documents you must have on hand is provided below:

Required Documents for salaried employees

Mandatory Documents

  • Properly completed loan application
  • A colored passport-size photo

ID Verification (anyone)

  • Driving License
  • ID card, Aadhaar
  • ID cards and passports are issued by the government, state, and public sector organizations.

Residence Evidence (anyone one)

  • Driving License Municipal or Property Tax Receipt Passport Utility Bill Ration Card

Income Proof

  • Salary slips (last six months)
  • Last six months’ worth of bank statements (salary account)
  • Certificate of salary
  • Form 16

Job Security Guaranteed

  • Current employer’s letter of the employment offer.
  • Certification of experience from the previous company.

Age Verification (anyone)

  • Birth Certificate PAN Card Passport Driving License.

Required Documents for a self-employed individual 

  • Properly completed loan application
  • A colored passport-sized photo

ID Verification (anyone)

  • License to drive, passport, PAN card, and Aadhaar card

Residence Evidence (anyone)

  • Ration Card, Passport, Driver’s License, Utility Bill

Proof of Office Address (anyone)

  • Rent Agreement Utility Bill Property Documents SSI or MSME Registration Certificate Maintenance Bill

Proof of Business Existence (anyone)

  • Tax Registration Copies
  • Proof of Shop Establishment
  • Certificate of Company Registration
  • Income Documentation
  • Bank statement over the previous six months
  • Recently Filed Income Tax Return (ITR)

Conclusion

Obtaining a loan for a bike or scooter is easy as long as you meet the eligibility requirements. Evaluate interest rates, two-wheeler loan agreements, and repayment capacity before making a decision. You can easily get a two-wheeler -apply online with Hero Fincorp and the loan will be available within a few hours.

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