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A Step-by-Step Guide on How to Apply for a Two-Wheeler Loan

October 04, 2024

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Are you planning to own a bike but short on funds? With a two-wheeler loan, you can make that dream a reality. But if you're unsure about the loan application process, don't worry.

In this article, we have detailed out how to apply for a two-wheeler loan and have explained the steps involved so that you experience a seamless loan application journey. By the end of this article, you'll be ready to take the first step towards owning your dream bike!

How to Apply for a Two-Wheeler Loan with Ujjivan SFB

Two-wheeler loan application may vary across banks. For ease of understanding, we have considered Ujjivan SFB's Two-Wheeler Loan (Chakra Loan) application process.

Step 1: Visit the Ujjivan SFB website

Go to Ujjivan Bank's website and navigate to the top menu.

Step 2: Go to 'Loans' section

After navigating to the 'Loans' section, select 'Vehicle Loans'. Once done, click on 'Two-Wheeler Loan'.

Step 3: Check Two-Wheeler Loan Details

Go through the loan details, including interest rates, fees and charges, loan amount, tenure, documents required, eligibility criteria, etc.

Step 4: Click on 'Apply Now'

Once you have clicked on 'Apply Now', you will be redirected to a separate loan application form page. Fill out the form online along and click on the 'Submit' button. Once the form is submitted, Ujjivan SFB representatives shall contact you through call/email/WhatsApp and/or send a text through SMS to take your application further.

Things to Consider Before Applying for a Two-Wheeler Loan

1. Convenience

In this fast-paced world, convenience is the key. We are all pressed for time. Apply for a two-wheeler financing from a bank that offers maximum convenience in the form of customer service, easy application journey, minimal documentation, etc.

2. Check Your Credit Score

Your credit score reflects your creditworthiness. Having a good credit score may help in fetching better deals on two-wheeler loans. Conversely, a poor credit score may lead to rejection of your loan application.

Point to note: Any score above 750 is considered as an above average/good credit score and any score below 600 is considered below average credit score.

3. Evaluate Your Repayment Capacity

Take a stock of your financial health before applying for a loan. It will help you in managing your finances better. Missing EMIs or repayments can hurt your credit score, while defaulting on the loan may result in complete seizure of your vehicle by the bank.

4. Check Your EMI Obligations

Calculate your EMI beforehand so that you can plan your loan and finances better. You can use a two-wheeler loan EMI calculator to check your monthly EMI.

5. Loan Amount

Determine how much you need to borrow based on the cost of two-wheeler, including insurance and taxes. Ujjivan SFB offers up to 95% financing on the on-road price of the vehicle.

6. Be Aware of Fees and Charges

Take note of additional costs including, processing fees, loan pre-closure charges, CERSAI charges, late payment fees, etc.

7. Eligibility Criteria and Documents Required

Check the eligibility criteria including age and type of employment, among others. Keep all the necessary documents like PAN and Aadhar ready while applying for a two-wheeler loan.

Final Thoughts

Applying for a two-wheeler loan doesn't have to be complicated. By following the steps outlined above, you can make the process hassle-free and get closer to owning your dream bike. Apply for Ujjivan SFB Two-Wheeler Loan and enjoy hassle-free application process, minimal documentation, and more.

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FAQs

1. What is the minimum and maximum tenure for a two-wheeler loan?

The tenure for a two-wheeler loan typically ranges from 12 months to 48 months. Check with your bank for more information.

2. Can I apply for a two-wheeler loan if I have a low credit score?

It may be more challenging to secure a loan with a low credit score. Even if the bank decides to give you a loan, you may need to pay a higher interest rate. Check with your bank for better clarity.

3. Do I need to provide a down payment for a two-wheeler loan?

Down payment requirements vary among lenders. Some may require a down payment, while others offer 100% financing. It's best to check with your chosen lender for their specific requirements. Point to Note: Ujjivan SFB provides up to 95% financing on the on-road price of the vehicle, subject to terms and conditions.

4. How long does the loan approval process take?

The loan approval process can take anywhere from a few hours to several days. It depends on the applicant's credit profile and bank's internal processes.

5. What factors should I consider before I apply for two-wheeler loan?

When you apply for a two-wheeler loan, compare interest rates, determine the loan amount, choose a suitable loan tenure, and ensure EMI affordability, among others.

6. What is the importance of loan tenure?

The loan tenure affects EMI and overall interest payments. A longer tenure lowers EMIs but increases total interest payable

7. How can I ensure that the EMI for my two-wheeler loan is affordable?

Calculate your monthly EMI obligations with the help of a two-wheeler loan EMI calculator. Compare EMI by altering interest rates, tenure and loan amount. This would help you understand whether your loan EMI is affordable.

8. Can I prepay my two-wheeler loan before the tenure ends?

Yes, most banks allow foreclosure of two-wheeler loan. However, you may have to pay a prepayment charge. For example, Ujjivan SFB charges a pre-payment penalty of 2 % p.a. of principal outstanding + GST.

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A Step-by-Step Guide on How to Apply for a Two-Wheeler Loan