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

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.