When you think of availing a two-wheeler loan what comes to your mind? Availing it from a bank, or maybe from a financial institution? Or you simply implore your parents for a two-wheeler escaping from the possibility of a loan? Jokes apart, when it comes to offering two-wheeler loans, there are two institutions or entities who are your lenders and from whom you can avail a two wheeler loan. These entities are as follows:
- Banks – private banks, State-owned banks, commercial banks, scheduled banks or non-scheduled banks, all offer loans in their product portfolio and a two-wheeler loan is one such loan product. Either you are a customer of the bank or not a customer you can avail of a two-wheeler loan from the bank easily if you meet other important criteria as prescribed by the respective bank.
- Non-Banking Financial Companies (NBFCs) – this is not a bank but deals in products which are offered by banks like loans, deposit schemes, etc. Non-Banking Financial Companies (NBFC) are institutions which also deal in two-wheeler loans and Hero Moto Corp. is one such NBFC which is a leader in the two wheeler loan market.
You can approach either your own bank in which you hold an account, another bank (if the rates are lower) or a Non-Banking Financial Company to avail of the loan.
Some of the salient features of Two Wheeler loans are
- Two wheelers have a superior resale value against cars in the long term. So once the loan payment is done, the owner can think about a new bike by selling it off.
- As an entry level vehicle, generally people in India prefer over cars. a considerable populace in India still cannot afford to buy a vehicle in a single lump sum payment. Hence, the 2 wheeler loans are really helpful in handling the financial burden of buying a vehicle.
- The rate of interest is comparatively lower on two wheeler loans than any other mode of finance available in the market.
- The and other processing formalities are very simple in two wheeler loans. Most of the time the loan is sanctioned instantly at the showroom itself. To make it more convenient all the loan providers have tie-ups with the dealer. This saves time and effort of the applicant to visit any bank or an for their loan.
- Nowadays, a lot of commercial banks and financing companies are offering two-wheeler loans at competitive interest rates. In banks do offer loans in combos with in-built insurance packages. So for an this is a since they need not go through the hassle of buying insurance cover for the new asset separately.
- There are numerous options for the repayment of two-wheeler loans. One can repay their loan either through ECS, post-dated cheques or cash on a monthly basis.