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What is a two wheeler loan and how to apply it?

Two wheeler loans are those that can be borrowed from the banks or financial institutions in order to procure a two wheeler vehicle. Such a loan can be available by people only when one wants to buy a two wheeler vehicle for personal usage. These loans are easy to get with flexible and fixed interest rates which again might vary from one bank to another depending on the base rate of these banks . The repayment starts once the loan is disbursed which happens in around a week from the loan sanction date.

The main benefits of two wheeler loan is that they are affordable, they have a speedy approval procedure and are often times convenient  and hassle free. Some banks give out special discounts to those who have their accounts in the bank the loan is taken from.

The repayment options are variable and may range fr5om 1 to 4 years and sometimes these are even available at the point of purchase. The repayment can be done through post dated cheques, standing instructions and easy EMI’s.

You have to either be a salaried individual or own a self-business , the age criteria varies from bank to bank. Sometimes there is a clause with banks that the borrower has to be working for at least one year.

For the loan the documents required are your

Proof of identity: Any one of the passport copy / a photo credit card- front and reverse/ voters ID card/ Driving license/Pan card / Copy of company ID/Ration card

Address proof: Any one of the Passport copy a photo credit card- front and reverse/ voters ID card/ Driving license/Pan card / Sale deed/ property purchase agreement/ credit card billing statement (latest)LIC policy/ Letter of company or company provided accommodation/ Address proof in the same name of the applicant’s spouse or parent’s name is acceptable.

Income proof – for salaried individuals: latest salary slip for government employees; if salary slip isn’t available only salary certificate is accepted with deductions.  For Partnership/ Proprietary firms & Pvt. Ltd. Co’s- Salary Certificate to be accepted with the following mitigants: Salary Certificate to clearly state the deductions, Name & Designation of the authorised signatory.

For Self-Employed: Copy of the latest I. T. return.

What are the interest rates and charges for the loan

The loan processing fees are maximum 3% of the loan amount, the documentation charges are maximum 3% of the loan amount. There are prepayment charges as well that vary from every bank, in case of late payment of the EMI the banks also charge late fee penalty that varies from bank to bank. Inc as the cheque bounces there is again a penalty to be paid but these charges vary from bank to bank.

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