5 Major Things To Keep In Mind Before Getting A Two-Wheeler Loan

5 major things to keep in mind before getting a Two-Wheeler Loan

Not everyone can buy a two-wheeler like a bike or a scooter just like that. Buying a new one is more costly and arranging funds can be difficult and tiresome, if you are on a tight budget.

That being the case, getting a Two-Wheeler Loan is a great way to purchase your dream bike or scooter without saving for years. A Two-Wheeler Loan is the way you can finance a two-wheeler of your choice. However, before you take the plunge and apply for a loan, several key factors must be considered, to ensure that you get the best deal possible and can repay the loan comfortably.

This article will discuss the five major things you should keep in mind when applying for a Two-Wheeler Loan and how you can apply for one with us.

Things to consider before applying for a Two-Wheeler Loan

1. Budget and Eligibility Criteria

Before looking for a loan, it is important to determine how much you can borrow. Take your monthly income, expenses and savings into account and determine the maximum amount you can comfortably repay each month.

Apart from this, it is important to see if you meet the Two-Wheeler Loan eligibility criteria. Each bank has a different criterion and before applying, you need to check if you meet the same to qualify for the loan. ICICI Bank has an age criteria for anyone above 21 years to ensure taking a loan is easy on your pockets.

2. Interest Rate and CIBIL Score

The interest rate on a Two-Wheeler Loan can significantly affect the loan's overall cost. It is important to compare the interest rates offered by different lenders and choose the best deal. Remember that a lower interest rate will result in lower monthly repayments and a lower overall loan cost. We offer attractive interest rates with an instant sanction option that makes the process easy and hassle-free.

Most banks check the CIBIL score as a criterion to approve your loan. Most lenders consider a CIBIL of 700 or above as a healthy credit score to approve your loan.

3. Loan Tenure and Down Payment

The loan tenure is the period in which you will repay the loan, typically ranging from 1 to 5 years. Choose a loan tenure that works best for you, taking into account your monthly budget and the amount you can afford to repay each month. A longer loan tenure will result in lower monthly repayments and a higher overall cost due to the accumulated interest over time.

With us, you can get a loan tenure of up to 4 years with minimal documentation and attractive interest rates.

Some lenders might also expect you to give an amount as a down payment. Mostly, it ranges between 10-40% of the loan amount. Remember to check the same before applying for the loan. ICICI Bank offers the loan with 100% financing of the loan amount, as per the vehicle's on-road price to ensure you are free from the burden of a down payment.

4. Processing Fees

Some banks and financial institutions might charge a processing fee on the loan amount. These fees can increase the cost of your loan. Due to the same, check whether your bank charges any kind of processing fee. We charge a processing fee only if you need an instant disbursal of your amount. However, please note that you need to meet the eligibility criteria to get the instant loan disbursal. The entire loan application process is digital, meaning you can apply easily from the comfort of your home.

5. Repayment Options

Finally, it is important to consider the repayment options the lender is offering. Some lenders may require you to make equal monthly repayments, while others may offer flexible repayment options that allow you to pay more when you can and less when you cannot. Choose a repayment option that works best for you, considering your monthly budget and financial situation.

You can repay us in EMIs with 100% financing of your loan amount. You can use our Two Wheeler EMI Calculator and know the number of EMIs you need to pay each month at the interest rate against the loan amount you want to borrow.

Applying for a Two-Wheeler Loan is easier with a seamless digital process. The documents required for a two-wheeler loan are given below:

1. Application Form

2. Identity proof and address proof

3. Bank statements

4. Income Proof like Form-16 or ITR returns

5. Employment proof.

Do keep in mind that the documents required from a salaried individual and a self- employed professional are different. Prepare accordingly.

With us, you can apply for a Two-Wheeler Loan in the following ways:

1. Find an ICICI Bank Branch near you

2. Contact our ICICI Bank Representative by going to the dealership store of the two-wheeler that interests you

3. Apply online through ICICI Bank Internet Banking. Available only to our customers with prior approval.

Should you take a take a Two-Wheeler Loan?

There is no harm in taking a Two-Wheeler Loan as long as you meet the eligibility criteria. A Two-Wheeler Loan will allow you to have a vehicle with a reduced financial burden and it is available at attractive interest rates, flexible repayment tenures and 100% financing. Remember to choose your lender wisely, to avoid any difficulties.

Conclusion

Getting a Two-Wheeler Loan can be a great way to purchase your dream bike or scooter, but it is important to keep these five major factors in mind to ensure that you get the best deal possible and can repay the loan comfortably. Check your credit score and finances before applying. Take the time to compare the options available and choose the one that works best for you.

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