If you are looking for a scooter loan, you don’t have to necessarily rely on getting it from a bank. You can also approach a Non-banking finance company (NBFC) and bargain for an attractive rate of interest. NBFCs offer competitive rates on scooter loan to grab their market share in the 2 wheeler loan segment. If you want to buy a scooter or a bike of your dreams, bike finance from NBFCs is the best option as you get a good interest rate coupled with professional service.
Benefits of availing scooter loan from NBFC
- When you apply for a 2 wheeler finance with NBFC, you get doorstep service for document collection and verification. You can apply for a scooter loan from the comfort of your house by visiting the websites of several NBFCs and within three working days, you will get the loan approval if you meet the eligibility criteria. You can upload the soft copy of the required documents on their website and pay a small down payment for booking a 2 wheeler of your choice.
- You can avail of better interest rates from NBFCs even if you have a lower income. They charge a lesser interest rate compared to banks and you get a tax benefit on scooter loan from a non-banking financial company.
- You can get a bike loan approved in just a few minutes by applying online on the website of NBFC. You can also visit a two-wheeler dealer showroom near you and apply for a 2 wheeler loan by submitting the required documents. The representative at the showroom will guide you in filling the loan application and submit your documents with the NBFC for approval.
- A bike loan requires you to pay a minimum down payment to reduce the financial burden of the borrower. NBFCs offer financing up to 90% of the vehicle amount. So you only have to pay 10% as a down payment. You can use the bike loan calculator available on the website of NBFC to calculate the rate of interest and conveniently choose EMIs you can afford every month.
- Unlike bank loans that are linked to external benchmarks, loans from NBFCs are linked to the prime lending rate (PLR). NBFCs are free to set the PLR, allowing them greater freedom in setting rates to suit borrowers’ demands.
- The lending norms for scooter loans from the NBFCs are quite relaxed. Borrowers do not have to pledge collateral for the 2 wheeler loan. If you have a good credit score with the credit rating agencies, NBFCs are quick to process your bike loan without many formalities.
- When you apply for a 2 wheeler loan with NBFC, you are required to submit ID Proof documents such as Passport, Voter’s ID, Aadhaar Card, Driver’s License along with recent passport size photographs. Address Proof documents such as Aadhar card, Electricity Bill, Ration Card, Passport. Income Proof documents if required such as latest Income Tax Returns (ITR), last six months bank statements.
- There are a large number of NBFCs registered in India with the Reserve Bank of India so there is no dearth for bike loan borrowers who can approach any NBFC for a scooter loan. NBFCs have seen their share in two-wheeler financing go up substantially in recent years despite the recent liquidity crisis. Two where manufacturers NBFCs like Bajaj Auto, Hero Motocorp, and TVS Motor Company which together control 65 percent of the domestic two-wheeler market have experienced a rise in their market share. Other two-wheeler players such as Honda, Yamaha, and Royal Enfield also depend on NBFCs for better sales. In the two-wheeler market, nearly three-fourth of the sold vehicles are financed. NBFCs have up to 40 percent share in the market.
- It is recommended to seek a loan from an honest NBFC and also get domestic money transfer service from them as they offer flexible tenures and easy loan disbursement. With minimal processing fee and hassle-free seamless service, purchasing a 2 wheeler through NBFC is a pleasant experience. Individuals with an effective credit score records can get the mortgage approved quicker and also are eligible for the special schemes. NBFCs provide customized solutions to the 2 wheeler loan applicants based on their necessities.