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How to choose best two wheeler loan

If you are looking to buy a bike, but are in doubt about the amount of money that you may have to shell out for it, then this guide will help you a lot. It gives you a complete list of all possible options, making it easier for you to choose the right offer. This way you can save more and get the best out of your hard earned money while buying the product that satisfies your needs and requirements.

It is extremely easy to get a two wheeler loan sanctioned in India due to the saturation of banks and financial institutions offering such loans. The procedure involved in processing these loans is simple, and there are several incentives offered by most of the lenders to attract customers.

There are certain points to consider for choosing the best two-wheeler loan.

Two Wheeler loan eligibility:

To be eligible for a two-wheeler loan in India, there are basic criteria that need to be satisfied. These are essentially the same as those that you would need if you were applying for any other type of personal loan in India. Have a look at them right here, so that you know what documents you need to submit with your application or enquiry form:

  1. The age bracket when applying for a two-wheeler loan is 21 to 60 years for working professionals and 21 to 65 for self-employed individuals.
  2. Applicants who are residents of a metro city have to have a minimum earning amount per annum of Rs 3.5 lakhs and for non-metro city residents it’s Rs 2.25 lakhs.
  3.  You must have your current address, phone number, and/or office number for at least one year.

You should know all the words and terms used in Two wheeler Loan:

  1. Loan Tenure: You have the option of choosing a tenure ranging from 12-48 months. The tenure is usually the number of months within which you are supposed to repay the loan amount.
  2. Interest Rates: The MCSL Loan offers a flexible repayment schedule and the interest that the borrower is expected to pay on the principal amount is calculated based on a certain percentage called an interest rate. It starts as low as 0.99% per annum at MCSL.
  3. Repayment Capacity: The repayment capacity is an important factor that banks use to assess your eligibility for a loan. Your current income along with other loans you have, your expense pattern and credit history are taken into account to determine your repayment capacity. The repayment capacity has a direct impact on the amount you can borrow.
  4. EMI: The monthly payment is the amount that the borrower is expected to pay the lender every month. It includes a part of the principal amount and interest accrued on the loan.
  5. Loan Amount: When you apply for a two-wheeler loan from Muthoot Capital Services Limited (MCSL), you are eligible to borrow up to 100% of the on-road price of the vehicle. The loan amount you are applying for takes into account the cost of the two-wheeler and your repayment capacity.

Check Your credit score: 

When applying for a loan, it is important that you understand your credit score. If you don’t know what a credit score is, here is some information about it. A credit score is provided by the credit bureaus (like CIBIL) and is based on your credit history. It indicates your creditworthiness and can be within 900 points within this range if you have a strong history and within 300 points for people with bad history.

Maximum amount of Loan you can get: 

While choosing a two wheeler for yourself, you should be aware of the loan amount that is available to you. At Muthoot Capital, you can avail up to 90 per cent of the motorcycle cost as a loan if you are eligible. Moreover, the interest rate charged on your loan is one of the best in the market.

Bicycle and scooter loans can be taken out to help you acquire the perfect mode of transportation for your lifestyle. Simply meet the eligibility criteria for two wheeler loan, research interest rates and repayment capacity, and then apply for a loan from our selected lenders.

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