In the present times, the procedure of looking for a loan has become well-organized and simple. You get to pick from a range of schemes and options, particularly when it comes to vehicles. But, most people get perplexed between two-wheeler loans and car loans and delay their application procedure. Thus, you must be aware of how they are diverse from each other to know which one is correct for you. You can easily apply for an online personal loan, two-wheeler, and car loan once you are sure about the process.
Two-Wheeler Loans versus Car Loans
Even though car and two-wheeler loans are in the ‘vehicle loans’ category, the two have substantial variations as the lender sees them as two diverse entities. The difference between two-wheeler loans versus car loans has been fundamentally based on the following factors:
- The two are diverse in regards to eligibility criteria.
- They vary in their repayment term.
- They share a disparity in terms of the loan amount that you can get.
- Most significantly, car loans versus two-wheeler loans vary in interest rates.
There can be definite additional differences between the two loan types, but the above mentioned factors encompass the fundamental differences. Following are some of these points to understand the difference between two-wheeler loans and car loans.
- Eligibility Criteria
While applying for a car loan, several factors are taken into consideration. For example, the lender checks the payment pattern, your credit history, and the history of your past loans, such as repayment tenure or any outstanding future payments.
Conversely, if you are thinking about applying for a two-wheeler loan, the application procedure is quite simple, and the fundamentals are fewer than car loans.
- Repayment Tenure
The average repayment tenure standards are mentioned below:
- The maximum term for new car loans is five years. It stays the same for used cars, but it can be lengthened based upon several factors.
- The repayment tenure duration for a two-wheeler loan is typically 2-3 years.
Both the car and two-wheeler loans are “Secured” loans. This means you must produce “collateral.” In other words, you would obtain a loan against an asset.
- Interest Rates
The interest rates applied over car loans vary from those on two-wheeler loans. Moreover, different lenders offer diverse loan interest rates. Thus, it is best to seek a loan with the lowest and most appropriate interest rates.
With the appropriate information regarding different facets of the loan process, individuals can get a fair idea of how to apply for a two-wheeler loan. Moreover, you can make the right decision by understanding the similarities and differences between car loans, two-wheeler loans, and even second-hand car loans.
Also Read – Personal Loan in Ahmedabad
How to get a loan without documents?
Getting a loan without documents is relatively easy, so long as a car loan is concerned. All that you need to do is to abide by the below-mentioned tips:
- Select a financial institution that you maintain a relationship with.
- Maintain a high credit score.
- Select a lender that offers the instant approval feature.
- Avail of a pre-approved offer.
Tips to get a two-wheeler loan
Now that you know how two-wheeler loans differ from four-wheeler loans, you can look into how to apply for a two-wheeler loan. Indeed, different lenders have varying procedures about the loan process. However, the fundamental measures that go into purchasing a two-wheeler loan remain the same.
The following pointers will offer you an insight into how to get an online personal loan for a motorcycle:
- Fill out a loan application with your complete personal details and the bike details you wish to buy.
- Calculate your eligibility and the repayment term.
- Go ahead to get your loan approval.
- Now, make your loan approval letter.
- At last, visit the dealership, where you want to make your preferred purchase, and own the two-wheeler of your dreams.
Thus, applying for a two-wheeler loan is super simple. The loan procedure for two-wheelers is reasonably simpler and easier to avail. Moreover, there are several loan schemes provided by lenders with reduced-interest rates. This makes the whole process extremely accessible, thus allowing people to apply for a two-wheeler loan and make their preferred purchase.
When it comes to financing modes for vehicles, the comparison between two-wheeler loans and car loans unveils distinct nuances. Two-wheeler loans often offer flexibility and quicker approval processes, while car loans typically involve larger amounts and longer tenures, which may attract the lowest personal loan interest rates. Understanding these differences is crucial for informed decision-making.