In recent years, the process of seeking a loan has become more efficient and convenient. You have a choice of plans and alternatives to select from, particularly when it comes to loans concerning vehicles. However, many consumers are uninformed of the distinction between a car loan and a two-wheeler or bike loan, causing them to postpone their loan application.
As a result, you need to be informed about the nitty-gritty of each of the loans, how they vary and determine which one would be appropriate for the consumers. The main distinctions between such loan types are discussed in this article, so let’s begin with the main distinctions.
1. Loan Value
The primary distinction between a two-wheeler loan and a vehicle loan is the loan value. The cost of a two-wheeler is far lower than the expense of purchasing a car. As a result, the loan values change, resulting in differences in interest rates, payback terms, and eligibility restrictions.
2. Eligibility Standards
When applying for a car loan, several standards are adequately considered. The lender, for example, looks at the payment outlines, credit records, and the background of your previous loans. It includes repayment length and any outstanding payments. Alternatively, if you’re wondering how to apply for a motorbike loan, the technique is relatively straightforward, and the requirements are less stringent than those of car loans.
3. Rates of Interest
The interest rates for car loans are diverse from the interest rates of motorcycle loans. Furthermore, different lending institutions provide different loans with varied interest rates. As a result, the best option is to look for a loan with the most affordable and suitable interest rates.
4. Repayment Terms
The below points are the average repayment terms to consider:
- A motorcycle loan typically has a repayment period of two to three years.
- New car loans have a maximum term of five years. For used cars, it continues the same, but this can be customised, as per the lender’s policies.
Now that you have a basic understanding of the variances between both the loans, you might think of attaining a bike loan. However, do you have any idea concerning the procedure to get a motorbike loan? If not, then here are the steps.
Stepwise Procedure to Acquire a Motorbike Loan?
Let’s now look at the application process for bike loans. Various lenders offer multiple application processes. However, the basic steps involved in obtaining two-wheeler financing remain similar.
Step 1: Look for a suitable lender. Check your eligibility, loan plans, and interest rates to find a suitable lender as per your requirements.
Step 2: Log on to the lender’s website or app and click on Apply now. Complete the loan application by filling in all of your personal information and the specifications of the bike you would like to buy. Ensure all the information is correct
Step 3: Scan and upload your documents. Check the required documents as dictated by the lender and upload them as and when they are required.
Step 4: Submit your application for approval. Your application and documents will be verified. Once done, the lender will get in touch with you to take the process forward.
Obtaining a bike loan has a very simple financing process. Look for lenders across financial institutions that provide a wide range of low-interest loan choices and simplified procedures that offer you the flexibility and allow you to apply for a two-wheeler loan as well repay it online.
Also Read: What is a Pre-Approved Home Loan?