Two Wheeler Loans
Two Wheeler Loans - Overview
Two-wheeler loans are most sought loans owing to the fact that majority of India’s population travels through a two-wheeler. Two-wheelers are not just convenient mode of transport but also are economic to use and affordable to buy. Two-wheeler can be bought by borrowing a loan. There are a number of banks that offer on-spot two-wheeler loans when you go to purchase your two-wheeler, however it is important that you know various features of two-wheeler loan before you apply for a two-wheeler loan. Enlisted below are various features of two-wheeler loan
Loan amount upto Rs.1,50,000/- can be borrowed for purchase of two-wheelers. Make use of eligibility calculator tool and know the amount that can be borrowed through a two-wheeler loan by simply filling an online application form. Customers with good credit score are considered eligible to borrow two-wheelers loan, therefore keep a track of your credit score for free through Letzbank portal.
Two-wheelers loan can be borrowed at a nominal rate of interest starting from 11% per annum. The rate of interest charged by your bank also depends on your credit score. Any bank lends or rejects your loan application based on the risk factor that is involved in lending you the loan. For a person with good credit score the risk factor is relatively less therefore a person with a good credit score can bargain upon the rate of interest at which he is being offered the loan.
The loan tenure to borrow two-wheeler loans can be as long as 48 months. Opting for longer loan tenure can add on to the overall cost of the loan because of the amount that gets added with the length of the tenure as towards the interest charged on your loan amount.
Processing fee is the amount that is charged towards the processing the two-wheeler loan. This fee is charged at the discretion of bank in form of a fixed fee or a percentage of the loan amount disbursed. Some banks may even exempt processing depending on the customer profile or the customer’s relation with the bank. The banks normally charge a processing fee ranging from 1.22% upto 4% as processing fee.
Fore-closure charge is the amount that is charged towards the pre-mature closure of your loan account. There are banks that levy a penalty whereas there are banks that do not levy a penalty. Normally, fore-closure charges for a pre-mature closure of a loan account range between Nil to 6% of the outstanding amount.
You can search, compare and apply for Two-wheeler loans at Letzbank and get benefited from a waiver on service fee for all applications submitted online. Once you apply online, use document locker to e-save your critical documents such as your KYC etc. Once you e-save your documents in a document locker, you can come back at any point of time to re-apply for any loan without having to upload the same documents again and again. Checkout Letzbank EMI calculator tool to know your monthly EMI, rate of interest that will charges throughout the loan tenure to take a well informed decision on your two-wheeler loan.