Tips for getting your two-wheeler loan accepted all at once

Two-wheelers are the most convenient form of ride on Indian roads to guide you through traffic with ease. Yet it began to gain popularity at the start of the pandemic, as hysteria surrounding the topic of contracting the virus led to a shift in people’s preferences and a shift to personal mobility over public transport. .

Moreover, Sumit Chhazed, co-founder of OTO, said, “People who had set aside part of their income to buy a four-wheeler earlier switched to buying a two-wheeler. wheels due to the easy financing options made available by lenders and NBFCs. to meet the growing demand as well as the aforementioned factors.

That said, there are some things every loan seeker should consider before applying for one, as listed below;

  1. Interest rate – This percentage of the principal amount you are required to pay with the EMI. Chazed says, “Since there is a surge in demand for two-wheeler financing, NBFC lenders compete to offer reasonable rates. The rate can start from 7% to 18% depending on the term one chooses .
  1. The principal amount – This is the actual amount you borrow from a lender and will depend on the repayment capacity of the borrower. “The LTV ratio is taken into account by the lender for this question. The ratio indicates the proportion of equity in the form of down payment on debt, because the higher the ratio, the higher the risk for the lender,” says Chhazed. An LTV of 80% or less is considered good.

For example, if you buy a two-wheeler worth Rs 100,000 and your LTV is 80%, your loan amount will be Rs 80,000 and you will have to pay 20% i.e. Rs 20,000 for it. ‘deposit.

  1. Mandate – The time offered to a borrower by a financial institution to repay the loan amount. It generally ranges from 12 to 48 months.
  1. NDE – EMI or equivalent monthly installment is the portion of the principal amount plus interest that you pay each month.

5. Processing fee – A nominal fee charged for processing the loan. Note that some lenders or NBFC may not charge you any processing fees.

Here are the tips for getting your two-wheeler loan accepted in one go:

1. Fill in the correct details – The loan application starts with filling in the details either online or offline. Chhazed points out, “It may seem easy, but one small mistake can delay the whole process. So be careful when entering the details.

2. Eligibility Criteria – This is the first and most important step you need to take to get your two-wheeler loan accepted quickly. Different lenders have different criteria to verify applicant’s eligibility.

Here are the commonly accepted eligibility requirements;

  • Residence – You must have a stable residential address and must also be an Indian citizen for a minimum period of 12 months.
  • Age Limit – An applicant must be at least 18 years old at the time of applying for the loan and not more than 65 at the time of loan maturity.
  • CIBIL score – A good CIBIL score of 650+
  • Employment Status – Stable employment status or if you are self-employed, your company’s IT statements must be provided before the lender.

3. Documents handy – To ensure a smooth KYC process, you need to keep the documents handy. These documents include ID and proof of address for identity verification purposes, as well as pay slips, computer statements, and bank statements to support your regular income.

4. Calculate EMI – If you meet the eligibility criteria, Chhazed points out, “then the next step should be to calculate the amount one has to pay for EMI each month. It can be accessed by calculators Online EMI to estimate EMI based on term, principal amount and interest rate.


Getting a two-wheeler loan is undoubtedly one of the best and easiest ways to fulfill your bicycle dreams without jeopardizing your finances. However, most applicants say the loan application process is long and stressful as you have to queue at banks to get loan approval.

But, Chhazed adds, “That is a thing of the past as at present, NBFCs and lenders are offering a fully digitized process ensuring a hassle-free process. Hence, if one meets the above-mentioned eligibility criteria , we can expect his two-wheeler loan to be accepted in one go.

Clifton L. Boyd