It’s natural to get irritated and tired of waiting for the bus, every day paying for a cab, or running to catch the metro, which is not available everywhere. Well, it’s a perfect indication for you to tell you that it’s the right and high time to buy a two-wheeler. It will not only help you navigate through traffic but will also save a lot of your time.
Getting a two-wheeler is never a bad investment. They are pretty pleasant to deal with. They are easy to manage and are more economical to run and to get insurance. They are less pollution creating. And most importantly, you can quickly get a two-wheeler loan.
Here are a few more things in detail that you need to know about a bike or a two-wheeler loan.
Types of loans available
• Secured loan – This loan is available against a security. Mostly your bike is the collateral for your two-wheeler loan. Your bike is in the name of the bank until you repay the loan, or else you can always put forward any other asset as collateral.
• Unsecured loan – As its name suggests, this loan is unsecured and is a kind of personal loan which can be used to buy a bike.
Some guidelines to get the right loan product
Here are a few steps that will help you out to not get confused among a wide variety of options available.
• The first step is to make a clear decision, i.e., you want to apply for which type of loan? The two options available are – secured or unsecured two-wheeler loan.
• People who are interested in getting a secured loan will have to pay a lower rate of interest. This reduces your EMI amount. Also, secured loans are mostly not concerned with your credit history.
• People who are interested in going for an unsecured loan will have to pay a high rate of interest, but on the other hand, you don’t have to pledge your assets. This even helps to build your credit score.
• If you are not willing to get into complicated situations and want to simplify the process, you can always make huge down payments to your lender. This will also provide some relaxation to the lender by reducing their risk. And you will get the benefit of a quick financial process.
• It always doesn’t mean that secured loan lenders are ignorant about your credit score. The presence of some unjustified errors will not be accepted, and your application can be rejected.
• It is essential to check your credit history before applying for any two-wheeler loan. You should always try to make positive changes to your credit history if you have a low score.
• People are very conscious and particular while choosing any dress, shirt, etc. before buying. They explore every option available and think and compare everything before finalizing the product. The same should be done with the two-wheeler loan. Loan options should be thoroughly compared with each other, and the best choice should be chosen according to your needs and requirements.
What is meant by two-wheeler hypothecation?
Many must not know what hypothecation means. Well, hypothecation says that the two-wheeler is pledged to the lender to guarantee them some security for your two-wheeler loan. Once you have repaid your loan, try to get the hypothecation canceled as soon as possible.
Few pointers to be kept in mind:-
- Never lose your loan repayment receipt.
- Duly fill the two forms of Form 35 as instructed by the bank.
- Get a postal cover and an Rs. 12 stamp on it with all other necessary details filled.
- The bank charges Rs. 100 hypothecation process fee. Remember to keep the receipt safely.
- Submit your bike’s original RC book, a duplicate copy of PUC (pollution under control) certificate, a copy of the insurance document, the abovementioned postal cover, and deposit to the RTO (Regional Transport Office).
- Take the receipt from the RTO office for the same.
- The original RC book will be sent back in a week.
- Always keep the original documents with you safely to deal with any further issues if it arises.
That was all the basics you need to know about a bike loan or any other two-wheeler loan. Make sure to get handsome and good two-wheeler insurance for the same.
If you follow the guidelines carefully, the date when a brand new bike will be yours will not take much time to happen.