Payment of loans is essential, and doing the same in the best possible manner can help self as well as the bank for future requirements. However, Buddy Loan helps you get the below benefits of a two-wheeler loan.
Repaying Your Two-wheeler Loan!
When loans are taken for automobile purposes, especially bike or two-wheeler, paying them at the earliest can aid a lot of benefits like savings, reduced financial burden, a good credit score, and also encourage banks to give loan consents in future.
Certain Tips and Tricks To be Followed for Loan Repayment Are as Follows:
- Autopayment: The first step should be to link your loan account with your salaried account of the current account where the amount can be deducted as soon as it arrives. Most of the repayment fails because money needs to be transferred from one account to the other, which is mostly procrastinated and ends up in failure of EMI Processing. If the loan account is attached to the salary account, the amount gets auto-debited and thereby leaves the only option of spending and managing expenses with the remaining amount; thus, EMI payment never fails.
- Using Savings: There always are some savings we have done, and those can be used for repayment. Using savings is a wise option as it ultimately leads to savings of the current money that is being earned as it cuts on the interest that is being paid. Any loan comes with interest, and if the loan is prepaid or paid on time, it saves on late dues and extra interest charges.
- Budgeting: This is a well-planned method to manage income and expenses. At the beginning of the month, a budget of expenses should be made and used accordingly. A track should be kept on the related expenses; this helps to stop and avoid unnecessary expenses. If no budgeting is done, expenses are met as and when they emerge with no procrastination, but when working on a budget, one tends to avoid unnecessary expenses hence saving more. These savings can be used for repayment.
- Source of Extra Income: Try and find if work can be done upon extra income like either by working part-time post regular job or through some small business at home or even by investing in funds that generate more interest. This could be an additional source that can help in faster repayment.
These are a few tips and tricks that can be followed and used for an on-time loan payment or faster payment. Buddy Loan can also help you with the repayment. The tips from Buddy Loan can help you achieve great results. With this one can also consider a prepayment of a two-wheeler loan and its effect on your credit score.
Prepayment in Repayment of a Two-Wheeler Loan!
Loans are a boon when there is a cash crunch and help to overcome adverse financial situations. Loans are taken for significant purposes such as buying a house, an automobile, and for education. Buddy Loan is one of the aggregators that help you get the best loan at lower interest rates. When loans are taken for automobile purposes, especially instant bike loans or loans against two-wheelers should be the ones that, if paid at the earliest, can turn out to be a real boon.
Loans always bring with it an interest rate which is charged over and above of the principal amount usually amounting to 12-14% for instant bike loans or instant two-wheeler loan. Prepayment of these loans can help an individual benefit in a lot of ways like:
- Savings: Any kind of loan offered by Buddy Loan, be it instant bike loan, instant personal loan, instant bike loan online, or second-hand bike finance, everything carries with it an interest which can be waved off by a good amount of these loans are prepaid. This amount which has been waved off could be spent on other requirements, be it household or personal, or this amount can also be saved and made secure.
- Improved Debt to Income Ratio: The debt to Income Ratio is a ratio calculated by adding up all the debt amount and dividing it by the monthly income. These ratios are used by banks to decide one’s financial strength and determine whether consent to borrow loans should be given or not. Hence maintaining a healthy debt to income ratio helps in future borrowings. If any prepayment is done, it helps to reduce the debt income gap hence improvising on the debt-income ratio.
- Credit Score: This is one of the primary factors to maintain in your overall financial portfolio as it portrays your ability to manage finances, loans, investments, etc. A good credit score in the market helps to approve loans for higher limits, get low-interest rates, and more negotiation power. To achieve a good credit score, it is essential to make sure paying loan payments are made on time, or prepayment of loans also helps to elevate this score.
- Reduce Financial Burden: Loans are always a burden and turn out to be at times the reason for stress hence always planning to manage expenses in a way so that an amount other than EMI can be invested in loan payment, thereby ending in prepayment of loan and becoming burden-free.
Hence these are a few major benefits to any loan prepayment, especially two-wheelers as the amount, in this case, is a smaller amount and thus becomes easier to handle and gain all the above. To avail the major benefits of a two-wheeler loan, we ought to have our minimal documents ready, and that includes you PAN and Aadhaar cards.
Aadhaar Card Role in a Two-Wheeler Loan!
Bikes are slowly becoming an accessible mode of transport across India. You may use it for business or personal transport across the busy city. Buddy Loan is the most opted to avail the best two-wheeler loan.
You could save up to buy one or contact an instant bike loan provider. From the year 2010, the Aadhaar card was introduced by the government as a mandatory identity document. The Aadhaar card acts as a multi identity document and will confirm your address, birth date, and many more.
The card can be linked to all your platforms for ease of use. Therefore even when you don’t have the card, you can just present the number, and you are good to go. The card consolidates all other identification documents, and you can only use the Aadhaar card.
It is a Mandatory Document For your Loan Against Two-Wheelers. Other Documents are:
- Filled and signed loan application form.
- KYC documents.
- Proof of address: Utility bills, passport, rental agreement
- Proof of age
- Photographs
- Proof of income: salary slips, form 16 bank statements, income tax returns, salary certificate.
Factors That Affect Two-Wheeler Loan Eligibility
The below fundamental factors can affect your eligibility for an instant two-wheeler loan. Other requirements will differ from one provider to the next.
- Age: To apply for an instant two-wheeler loan, you should be 21 years and older. Suppose, you have a guarantor, applying earlier to the above age is permeable.
- Existing debt situation: If you are looking to get a two-wheeler loan, you need to be aware of how much debt you have as it affects your credit score.
- Credit history: Your credit history is essential in determining bike loan instant approval. If you have a poor credit history, then most instant two wheeler loan providers may lock you out.
- Applicants Income: If you are earning a higher income, the bank can rely on your ability to repay the loan. You are deemed to be of a lower risk rating.
- Area of residence: If you live in an urban area, there are higher chances of receiving approval for the two-wheeler loan online.
- Most lenders require that you have a work experience of one year and have worked for that current employer for a year.
Apart from the Aadhaar card, there is one more mandate document a person should possess as a hard and fast rule. Let us what it is, below.
PAN Card is Mandatory While Availing a Two-Wheeler Loan:
Yes! There ware different ways of applying for a two-wheeler loan or bike loan like applying online or approaching a bank for instant loan approvals. Buddy Loan is most often the opted aggregator to choose the best two-wheeler loan.
Applying through any of these methods results in the scrutiny of the financial strength of the customer. If he is applying for a loan, the bank to determine the repayment power of the applicant.
Banks examine and analyse the documents in detail; hence furnishing correct information and documents is essential. Documentation is required for three different categories personal identification, address proofs, and lastly, bank statements as to financial evidence.
The documents required for personal identification are Aadhaar, Passport, Driving License Election Commission card, or PAN Card. Buddy Loan requires producing any one of these documents as Personal ID for loan processing. The benefits of using a PAN is:
- PAN card serves as the best ID proof for Banks and other financial institutions as it’s a Permanent Account Number card required for all kinds of financial dealings like tax and returns etc.
- PAN card is also one of the mandatory requirements a bank asks for while creating a savings or current account. Since the card had already been produced at the bank, there is no need to providing any other ID proof like Driving License or Passport or Election commission card. The two-wheeler loan or bike loan can be instantly processed due to prior detail furnishing with the bank.
- Another mandate for producing PAN card while acquiring a loan is any dealings above an amount Rs.50,000 require the furnishing of PAN Card. Also, buying or selling any asset with a value more than fifty thousand rupees being done by an individual requires producing of PAN card, hence if this card is produced in the beginning as proof of identity, it will be further not required for loan processing.
- These days spamming and misuse of documents have become very common, and most people easily fall prey to these scams. If you submit the PAN card as your proof, there is no room for the misuse of your details.
Hence, to conclude it is not mandatory to provide a PAN card while getting the loan but producing PAN card over other ID proofs serves to be a better and wiser option as it is a financial dealing and PAN card acts as the best proof for any kind of financial transaction, hence producing the same can be favourable for an individual while taking a two-wheeler or a bike loan.
Term The Uses of Two-Wheeler Loan:
A two-wheeler loan is a type of personal loan, and at Buddy Loan, the same is provided swiftly. A quick and smooth method to finance the bike you wish to buy! Opt for a two-wheeler loan that can be availed with lower interest rates by Buddy Loan.
- It’s Easy!
If anyone has concern over the financial shortage to get a bike, Buddy Loan offers instant two-wheeler loan depending on your credit history and documentation. It just requires minimal documentation.
All you have to do is make an online application with the required documents. Two-wheeler loan via Buddy Loan is easy and fast to get a two-wheeler in the given time.
- And Paperless
The loan application process via Buddy Loan is 100% digital and paper-free.
- EMIs is the solution
The most convenient part about two-wheeler loans is the same are to be repaid in equated monthly instalments depending upon the borrower’s choice of the loan tenure.
From 6 months to 5 years, you get to choose the period in which the loan will be repaid via Buddy Loan.
- Helps in Building Credit History
A bike loan which has been granted online helps the borrower in building credit history if the borrower is regular in paying EMIs.
- 100% Road Price
The best part about a two-wheeler loan is the amount of loan covers 100% of the road price of the two-wheelers.
- You don’t Have Limitations on The Price
An online loan for two-wheelers is easily available for an amount as small as Rs.10000 to Rs.15 lacs. Choose the bike you want; one doesn’t need to think a lot about the price- Finance it now using the instant bike loan. Buddy Loan will act as your loan aggregator.
The loan can be repaid in instalments over a period of 6 months to 5 years! Availing a two-wheeler loan, the price of the bike is not a concern.
- It’s Instant
The one most crucial aspect of a two-wheeler loan is the ability to purchase the bike of utility immediately. You don’t spend days, weeks, and months trying to get together the required funds or trying to process the loan.
All you have to do is register with Buddy Loan, upload the required documents, and get in touch with the lender. The process is paperless, quick, and not at all burdensome.
Getting a two-wheeler instant loan is made extremely easy via Buddy Loan app.
Having any queries? Do reach us at info@buddyloan.com
