दो पहिया वाहन ऋण सम्पूर्ण : एक संपूर्ण मार्गदर्शिका

A two-wheeler is more than just a mode of transport. It is someone's dream and, often, a necessity. On busy Indian roads, two-wheelers are more practical and efficient as they come with excellent mileage. However, this doesn't make them easier for everyone to afford. In such cases, a bike/two-wheeler loan can be very useful. Here is a complete guide to a two-wheeler loan process, starting with what it is, its benefits, the documents required to apply for it, etc.

What is a Two-Wheeler Loan?

India has one of the largest motorcycle industries in the world. Finding the motorcycle of one's dreams is not difficult but affording it can be. With a two-wheeler loan , one can conveniently purchase their dream vehicle without worrying about financial constraints.

The lenders offer 85% to 100% of the motorcycle's on-road price as the loan's principal amount.

Interest is then levied on the amount loaned. One can repay the loan in budget friendly EMIs (Equated Monthly Instalments).

Benefits of Two-Wheeler Loans

At Bank of Baroda (BoB), one can apply for a two-wheeler loan with reasonable interest rates and a nominal processing fee. With affordable EMI options and immediate loan disbursals, one can opt for one of the best bike loans at Bank of Baroda. Here are the key benefits of a two-wheeler loan at BoB:

• Competitive Interest Rates

While availing of any loan, interest rates play a huge factor in deciding whether or not it is worth choosing. To make borrowing more accessible and easier, the Bank of Baroda offers affordable two-wheeler loan interest rates.

• High Loan Amount

The motorcycle industry offers a wide range of two-wheelers in varied designs and costs. However, monetary restraints are no longer an issue with the Bank of Baroda's high loan amount limit. One can now avail of a loan up to Rs. 10 lakh.

• Nominal Processing Fee 

Bank of Baroda charges a minimal two-wheeler loan processing fee.

It is equivalent to 2% of the total loan amount + GST, and the minimum fee is only Rs. 250 + GST.

For instance: If one is taking a two-wheeler loan of Rs. 60,000, the processing fee will be only Rs. 1,200 (2% of Rs. 60,000).

• Easy to Avail

Two-wheeler loans from Bank of Baroda only require one to fulfil the basic criteria of gross monthly income (GMI). Another basic criterion is that a loanee should be within the age group of 21–65.

• Aids in Building Credit Profile

Bike loans are the most common type of loan these days, requiring only basic criteria and documentation to apply. Hence, one can use it as a stepping stone to build a good credit or CIBIL score. This, in return, can aid one in building the base of their credit profile and raise their creditworthiness.

Eligibility for Two-Wheeler Loan

To apply for a two-wheeler loan with Bank of Baroda, one must fulfil certain eligibility criteria. To check one's eligibility for a two-wheeler loan at BoB, one must satisfy the following:

• Nationality: The applicant's nationality must be Indian.
• Age: The applicant must be in the age group of 21–65
• Employment Type: The applicant can be one of the following:
  • Entrepreneurs
  • Professionals
  • Salaried individuals
  • Bank of Baroda's staff or ex-staff
• Income: The applicant must belong to one of the following categories and will have eligibility for a bike loan accordingly:
  • Salaried Individuals - The applicant's last three months' GMI (Gross Monthly Income) will be considered.
  • For Non-Salaried Individuals - The applicant's last two years' GMI would be considered.
• Repayment Capacity: EMI proposed including all the deductions should not exceed in the following manner:
  • GMI lesser than Rs. 20,000/month - 50%
  • GMI more than Rs. 20,000/month but less than Rs. 1 Lakh/month- 60%
  • GMI equal/more than Rs. 1 Lakh/month - 70%
• Purchasing Conditions:The two-wheeler the loan will finance must be brand new and for personal use only.

Two-Wheeler Loan Process of Application

Applying for a bike loan is now hassle-free with BoB's two-wheeler loans. One can complete the bike loan process online at competitive interest rates and flexible EMI options. However, remember to go through an online bike loan EMI calculator before proceeding with the application process.

To apply for a bike loan at Bank of Baroda, one must complete the two-wheeler loan process by following these steps:

• Visit BoB's official website.
• Find the ' Vehicle Loans ' option in the navigation tab under the 'Loans' category.
• Click on the 'Baroda Two Wheeler Loan' from the drop-down menu.
• Click on 'Apply Now'. 
• Fill in the required details on the redirected page.
• The applicant's task is complete. A bank representative will contact the applicant regarding the loan application.

Bike Loan Documents

One would need to submit their documents for loan authentication purposes. To verify one's bike loan documents are again categorised under employment type. One would need to submit the required general documents and documents mentioned under their employment type. They are as follows:

• General Documents
  • Duly filled and signed loan application form
  • Three applicant's photographs of passport size
  • Age proof (birth certificate/passport/driving license/life insurance policy/PAN card/Aadhar card)
  • Residence proof (voter ID/utility bills/driving license/notarized registered rental agreement/passport//updated bank passbook or account statement/Aadhar card)
  • Last six months' bank statements
  • Motorcycle quotation
• For Self-Employed Individuals
  • Last two years' Income Tax Returns, TRACES, 26AS
  • Balance sheet, last year's Income Computation, and last two years' Profit and Loss
  • TDS Certificate/Form 16A/Income Tax Challans/last two years' Form 26AS/Clearance Certificate/IT Assessment
  • Business proof (Service Tax Registration, Gomasta License/Registration Certificate, etc.)
• For Salaried Employees 
  • Form 16 or Income Tax Returns
  • Last three months' Salary Pay-slips 

How to get an Instant Two-Wheeler Loan

Unlike loans such as home loans, two-wheeler loans have quick disbursal as soon as they are sanctioned. To get an instant two-wheeler loan at BoB, one can do any one of the following:

• Get in touch with a bank representative at the nearest branch 
• Apply for an online bike loan by visiting the bank's official website
• Call a toll-free number 1800 5700

Two-Wheeler Loan Interest Rates

To make borrowing more accessible, Bank of Baroda provides affordable two-wheeler loan interest rates that can be calculated: BRLLR (Baroda Repo Linked Lending Rate) + Strategic Premium + 4.25%. 

The effective interest rate on the two-wheeler loan levied by Bank of Baroda is 13.35%.

A 0.05% rate under Risk Premium will be applicable for those not insured under credit life Insurance cover. If the loan applicant is an ex-staff or staff at Bank of Baroda, they would need to pay only the strategic premium and the BRLLR. Here, a strategic premium is a type of supplementary premium incorporated into the business value one is willing to purchase.

While availing of any loan, interest rates play a huge factor in deciding whether or not to opt for the lender/loan. A few pivotal aspects can drastically affect the applicable interest rates, such as:

• Monthly income
• Credit score
• Opted loan tenure
• Vehicle type

How to Calculate EMI for a Bike Loan?

Before applying for a motorcycle loan, the applicant must calculate the monthly EMI necessary to pay. This tells the applicant how much they need to pay as per their opted loan amount and tenure. This gives them an idea to sort out the monthly funds required to repay the loan and other financial obligations.

One can use the online Bank of Baroda Two-Wheeler Loan EMI Calculator . It makes use of the formula P x R x (1+R)^N / [(1+R) ^N-1] to calculate the EMI. Here, 'P' is the principal amount of the loan, 'R' is the interest rate, and 'N' is the number of tenure months. However, one doesn't need to make any manual calculations to know their EMI. To know how to calculate EMI for a bike loan , the applicant must input the loan amount, loan tenure, and the applicable interest rate in an EMI calculator. The following are a few advantages of using an online EMI calculator:

• As an electronic facility, it offers accurate results to the values inputted.
• It is a free-to-use tool with no scope for error.
• It is 100% reliable and computes results immediately.
• One can use it more than once to figure out the best combination of the loan amount, tenure, and EMI options to plan out based on one's budget.

Two-Wheeler Loans Prepayment

Foreclosure or prepayment penalty or pre-closure charge is usually applied by lenders when one wishes to repay the loan before the tenure ends. However, Bank of Baroda charges no penalty for two wheeler loan foreclosure , which allows one to free themselves from other financial obligations or loans in the future.

Two-Wheeler Loan Tenure

Bank of Baroda provides affordable and convenient EMI options so that one can repay without any worries. Additionally, the bank allows applicants to choose their two-wheeler loan tenure depending on their financial condition and income. The maximum repayment tenure extends up to 5 years or 60 months. One can utilise the two-wheeler loan EMI calculator to ensure the best EMI option for themselves.

Summing Up

A two-wheeler cuts down not only the travelling time but also day-to-day expenses. No one said a motorcycle necessity could not be one of dreams and ease. Since saving up to purchase a dream two-wheeler is tedious and difficult, a bike loan can give one the financial support they need to carry out their financial obligations yet ride in happiness. To that effect, it is vital that one carefully make their decision. And to do so, the Bank of Baroda is there to fully support its customers' needs financially.