Are you looking to buy a two-wheeler but are unable to afford the purchase price? With a two-wheeler loan, you can get up to 95% finance on the on-road price and pay in small EMIs.
But before applying for a two-wheeler loan, you must understand some important factors. These include the loan amount, interest rate, and repayment tenure.
1. Loan amount
Buying a two-wheeler can be an expensive affair, especially if you need to pay for the entire amount upfront. If you can afford it, purchase your bike in cash and avoid the hassle of paying interest at a later stage. However, if you are unable to afford the entire cost of your dream bike at once, you can take out a loan against RC Book to cover the expense.
An RC (Roadworthy Certificate) is official proof that your bike has been registered under your name. It is a must-have document to avoid getting into legal trouble when riding your bike on public roads. Earlier, the RC was provided in the form of a booklet, with all the details of your vehicle physically penned in. Today, however, the RC is issued as a smart card that contains all the essential information about your car, including its registration number and the owner’s name and address.
To apply for a duplicate RC, visit your local Regional Transport Office (RTO). The officials will inspect the bike to assess its roadworthiness and go through all the paperwork associated with it. After the inspection and verification, they will issue you a new RC book or a smart card, which will contain all the essential information about your vehicle. The process of submitting required documents is similar for both 4-wheelers and 2-wheelers.
2. Interest rate
The RC book is an important document that should be kept safe at all times. Without it, a person is not allowed to drive their two-wheeler on the road and could face hefty fines or even have their vehicle confiscated. Hence, it is best to obtain a duplicate RC book as soon as possible. The process is simple and affordable. The best part is that it is valid for 15 years.
The interest rate associated with a loan against the rc book is based on the borrower’s credit score, income proof, and other factors. These factors can vary depending on the lender. For example, some lenders may require a higher credit score, while others may consider the borrower’s employment status and other factors. A lower credit score can result in higher interest rates, while a higher credit score can result in lower ones.
To determine your EMI amount, you can use an EMI calculator. This online tool is easy to use and gives you an accurate estimate in a split second. You can enter the loan amount, interest rate, and tenure of the loan in the EMI calculator to get an idea of how much your monthly outgo will be. A longer loan tenure will reduce the EMI amount, while a higher interest rate will increase it.
Among the many benefits of a loan against a two-wheeler, RC book is that it has simple eligibility criteria. Salaried individuals with a good repayment capacity and a decent credit score are eligible for this loan. It is also ideal for self-employed professionals who have a steady source of income.
Moreover, the interest rate for this loan is fixed and does not fluctuate based on market rates. In addition, the loan amount is 100% of the bike’s on-road value and includes registration charges. The loan is a quick way to get the money you need to buy your dream bike. Then, you can start making payments through an EMI schedule. To calculate the exact EMI amount, you can visit an online EMI calculator from Axis Bank. This tool will give you an instant answer and help you plan your finances better.
3. Repayment tenure
You have finally bought your dream bike or scooter but are unsure how to go about getting the necessary documents. One of the most important is the RC book, or the Regional Transport Office (RTO) document, that proves that your vehicle has been registered with the RTO. It also contains information such as your name and address.
Obtaining an RC book can be a daunting task, especially if you don’t know where to start. Fortunately, there are a few ways to make the process easier and more convenient. The first step is to ensure that you have the correct address on file with the RTO. This will ensure that you receive the RC book in a timely manner. Then, you can fill out the necessary paperwork and submit it to the RTO to complete the process.
Once you’ve repaid your loan, the lender will send you an NOC (No Objection Certificate). This should arrive at your home within 20 working days of your last EMI payment. Once you have received the NOC, you can use it to remove the hypothecation from your RC book.
Removing the hypothecation is a crucial step in establishing your ownership of the vehicle and is necessary to transfer it or sell it later. It can be done by submitting the following documents to the RTO:
The best way to calculate your two-wheeler loan EMI is to use an online EMI calculator. These tools are simple to use and provide accurate results. They also feature a slider that allows you to change the values of different variables and see how they affect your EMI. They are available for both desktop and mobile devices, making them a convenient tool for anyone who is planning to purchase a new two-wheeler.
An excellent way to reduce your EMI is to choose a longer repayment tenure. This will lower your interest rate and reduce your monthly payments. However, you should only do this if you have enough disposable income to repay the loan in full. Otherwise, you may end up paying more in the long run.
4. Documents required
If you want to buy a two-wheeler, you can get finance for it by applying for a loan. However, before you apply for a loan, it is essential to check your eligibility and compare different offers. You also need to consider your repayment capacity. This is because your ability to repay the loan depends on your income and other financial commitments. If you are unable to pay the loan in time, you will have to pay heavy penalties. Moreover, if you don’t have a high credit score, you might not be able to obtain a loan.
In the past, RC books were used to register your vehicle. The RC book contains all the information related to your car, including its specifications, registration number, and owner details. These were physically penned into the book by an RTO official during the registration process. Nowadays, a smart card is used to store the same information. The RC card is much more secure than the old-style RC book. Getting a duplicate RC book is possible if the original one is lost or damaged. You can also use it to change your address on record with the transport authorities.
To apply for a duplicate RC book, you need to visit the RTO office and submit the required documents. You will have to provide proof of identity, address, and date of birth, as well as a photocopy of your vehicle’s insurance policy. After the paperwork has been verified, you will need to pay a service fee for the application. You will then receive an acknowledgment slip indicating when you can collect the duplicate RC book.
The documentation requirements for a loan against a two-wheeler RC book vary from lender to lender. Some require more than others, so it’s best to check the documentation requirements before you apply. For example, some lenders have different requirements for salaried and self-employed individuals. Some will even have a separate requirement for people with low credit scores. It’s also a good idea to check the lender’s website for any special terms or conditions. For instance, some lenders may have a minimum income or age requirement.
