People prefer having a two-wheeler rather than a four-wheeler as the price of a two-wheeler is relatively less than four-wheelers. The maintenance cost of a two-wheeler is also less. Buying a wheeler is a big decision to take, whether to use cash or a loan. In this situation, it's better to take a loan. For this, there is a specific kind of loan called the two-wheeler loan. It is a loan for those who want to buy a two-wheeler but cannot afford to pay the price at once. There are many things we should know before applying for a two-wheeler loan.
Some of the key points are listed below:-
Check the interest rate on loan - The interest rate may vary from bank to bank. You should be aware of all the different interest rates that are offered by different banks as lower interest rates will help you to save some money. Many factors such as credit score, age, liability, current assets, financial status play an important role in the eligibility criteria for the two-wheeler loan.
Never over-borrow - Calculate all the amounts including the EMI that you have to pay monthly. According to that, you need to take out a loan. Just that, you can do how much you can, don't take out more than the required amount. It will be difficult to repay the amount. Because of the increased amount, the EMI will also increase accordingly. You should be capable of affording that as well. If you are not able to on time, it will affect your credit score negatively.
Have a repayment plan in place - You need to have a proper plan of repayment of the loan before applying for the loan. Repaying the loan amount timely is one of the important factors. You should discuss all the possible options you have for repaying the loan, accordingly select the loan tenure, EMIs, etc.
There is a two-wheeler loan calculator available online, using which you can get your options. The process is very simple. You just need to enter the loan amount, the interest rate, and the tenure period; with just one click, it will show the EMI that you need to pay monthly. There will be plenty of options available as the EMI payment is very flexible in this kind of loan.
Two-wheeler loans come with lower interest rates. Riding a two-wheeler feels super fun. Generally, people prefer buying a two-wheeler. Due to this, two-wheeler loans are in high demand because many people prefer loans rather than paying the full amount at once. Two-wheelers are economical as well. In this pandemic situation, it is safer to commute using a bike rather than using public transport in case of an emergency.
Generally, you can zip through the traffic using a two-wheeler; it's difficult for a four-wheeler to do the same. The approval rate of loans for the two-wheelers is easy to get as compared with the Four-wheelers. Two-wheelers are fuel-efficient as well; they don't pollute much, and the maintenance required is also less. They have a good value of resale as well. Many people can't afford to buy a new two-wheeler; people buy from the people who are willing to sell their old vehicle.
Oriental Bank of Commerce two wheeler loan is a loan which many people prefer because of the additional offers they provide to the customers. They offer a very attractive interest rate which ranges from 8.70% p.a. to 9.55% p.a. They give a maximum loan up to Rs.10 lakhs. The processing fee is also very less. The minimum monthly income to apply for a loan is Rs. 8,000. They also provide special seasonal offers which you should look out for.
Conclusion
A two-wheeler costs less than a four-wheeler. People tend to buy two-wheelers more than four-wheelers. People prefer to take two-wheeler loans, which results in high demand for the two-wheeler loan.