Everything You Need to Know about Two Wheeler Loans

If you are tired of waiting for a bus, and are fed up of paying fees every time you book a cab, don't worry! This is a sign! A sign telling you that you have started thinking about getting your bike! A bike that will help you navigate through traffic and save a lot of time.

For those of you who think that a two-wheeler is a bad investment, after reading the following points, you can change your mind.

Two-wheelers can be great because:

1) They help you save a lot of time that would otherwise be spent in traffic
2) They are easier to maintain than four wheel vehicles
3) They are more economical to run and insure
4) They are less polluting
5) Two-wheeler financing is relatively easy to obtain

If you are still convinced that a two-wheeler is a good investment, then it is time to choose the right loan.

Two types of two-wheeler loans:

Secured- You can avail a loan secured against the security of some valuable asset like land, house or gold. Most two-wheeler loans are secured against your bike. So, your bike is collateral. If you want the bike not to be in the bank's name until the loan is repaid, you keep other assets as collateral. Unsecured- As the name suggests, these loans are not secured against any property. These are essentially personal loans that you can use to buy your bike.

Tips to choose the right loan product

To ensure that you choose the right loan product without getting confused by the variety of options available, here is a list of things you should think about before applying:

1) First things first, decide whether you want to apply for a best 2 wheeler loan (this option can be tricky! Think through it).

2) Why you should consider getting a secured loan – Since you are acquiring it against a valuable asset, the rate of interest is likely to be lower. This automatically means reducing EMI and the cherry on the cake is the fact that a secured loan can be approved regardless of your credit history! Oh, is that so! That's a relief! Is not it?

3) The good thing about unsecured loans is that you do not need any kind of security for this. But, yes, the bad thing is that it comes at a higher rate of interest than the safe rate. However, there are some people who do not like the idea of ​​mortgaging their property. If you are one of them, this can work beautifully for you!

4) If you want to simplify things for yourself and the lender, you can always pay heavily. In this way, the lender's risk is reduced, and you get the benefit of your finances processed quickly! Who is not in love?

5) Just because we said that you can easily get a secured loan regardless of your credit history, does not mean that a bad credit score will always be ignored. If there are some inaccurate errors in your credit report, then things can go wrong for you! Do check it before deciding to take an auto loan.

6) If you have not won a lottery recently and still need a loan at a reasonable rate, it is worth checking your credit history properly and trying to make positive changes if you score low.

7) The way you like to see lots of options before buying the right dress, shirt or anything; You need to think, compare and then choose the best loan option according to your specific needs and requirements. Look around, explore all your options and then make the right choice.

What is two-wheeler hypothecation?

Never heard of this word before? Don't worry! We will break it down for you. When you click on bike loan apply online button on Muthoot Capital to take loan, you usually pledge your two-wheeler to guarantee some security to settle your debt. This process is called hypothecation.

Once you have repaid your loan, you need to cancel as soon as possible. Here are some hints you need to keep in mind:

1) Have a loan repayment receipt as proof.
2) Duly fill out the two forms of Form 35 that the lender (bank) gives you.
3) Remember to get a postal cover with one rupee. Put 12 stamps on it and put your name and contact details on it.
4) The bank asks you for Rs. 100 as processing fee for the termination of hypothecation. Remember to get a receipt for this.
5) Submit your bike's original RC book, a duplicate copy of the Pollution Control (PUC) certificate and a copy of your insurance document to the Regional Office (RTO) along with the above postal cover.
6) Wait! Don't forget to get the receipt before you step out of the RTO office.
7) Dont worry! We know that you have submitted the original RC book to the RTO office. They will send it back to you in a week's time. That is why we have asked you to put your name and contact details on the postal cover , duh!
8) Although it is a mindless person, keep a copy of all original documents with you. This rule applies everywhere.