In recent years, there has been a welcoming change on Indian roads. More and more women are taking up their passion for driving. Not just four-wheelers, women are found riding every type of two-wheelers, be it gearless scooters for daily commute to riding high-end performance bikes for thrill and adventure.
Among many factors, one of the key factors that are driving this change is easy access to two-wheeler loans for women. Additionally, lenders offer certain benefits to women borrowers making it easier to own a two-wheeler. Let’s have a closer look at the benefits of two-wheeler loans for women.
Benefits of Bike Loans for Women
In many studies by financial institutions and government agencies, it has been found that women are the most responsible borrowers. The percentage of default on a loan is much lower compared to men borrowers. Therefore, lenders often prefer women as borrowers and co-borrowers in a loan application.
The following are the benefits offered to women on two-wheeler loans:
- Affordable Interest Rates: As two-wheeler loans often fall under the small-ticket loans category, the credit risk for lenders is small compared to other big-ticket loans like home loans or personal loans.
It helps the lender to offer a competitive two-wheeler loan interest rate to borrowers. Additionally, many lenders also offer a discount on interest rates to women borrowers to make loan offers more affordable.
It helps women to lower their EMI, save on interest costs, lowering their two-wheeler ownership costs.
- Low Down Payment: Every borrower is required to provide a certain percentage of the two-wheeler cost upfront before raising the loan. It is referred to as a down payment. In most cases, the lender requires you to provide at least 20% of the value of a two-wheeler as a down payment.
However, to make the process easier and reduce the financial burden for women borrowers, some lenders offer a 100% financing option or give 100% value of the two-wheeler as a loan. For instance, SMFG India Credit allows zero down payment* on bike loans as long as the borrower fulfills all the eligibility criteria.
- Flexible and Easy Repayments: With two-wheeler loans, one need not worry about the repayment tenures as lenders provide easy and flexible repayment options.
A borrower can opt for an easy repayment schedule and plan monthly repayment amounts according to their finances. Using a bike loan EMI calculator, you plan your EMIs and repayment tenure easily. Most lenders offer two-wheeler loans with a maximum tenure of up to 48 months, making it very easy for borrowers to own a bike.
- Easy Processing and Quick Approval: Two-wheeler loans are often approved quickly by lenders if all the eligibility criteria are met by the borrower. Furthermore, the minimum eligibility criteria for women borrowers let many women take two-wheeler loans instantly.
In SMFG India Credit, you can also apply for a two-wheeler loan online, which removes the hassles of applying for a loan offline and also ensures instant digital approval and disbursal.
- Minimal Documentation: The loan documentation process has become much easier nowadays. With most lenders offering services online, you just need to upload scanned copies of original documents while applying online, saving a lot of your time and effort.
To avail of a two-wheeler loan and meet the loan eligibility, you need to provide the following documents:
- KYC documents (PAN is required)
- Residential address proof
- Last three months' salary slip/ valid income proof
- A copy of Form 16
- IT Returns (if self-employed)
Eligibility Criteria for Bike Loan
The eligibility criteria to avail of a bike loan at SMFG India Credit are as follows:
- Should be at least 18 years of age while applying and not more than 65 years on the maturity of the loan
- Must be Indian resident and residing at the present residential address for at least 1 year
- Should have a minimum work experience of at least 1 year and be employed with the current employer for at least six months
- Must have a credit score of at least 650
These are the basic eligibility criteria the borrower needs to fulfill to avail of a bike loan.
Owning a two-wheeler in India is not a luxury, but turned out to be a necessity. With roads becoming excessively crowded with large vehicles, two-wheelers offer a much better traveling experience and also reduce commuting time.
For women, it is very important because they have multiple responsibilities to fulfill, inside and outside their homes, from taking care of their family to excelling in professional life.
Not only do two-wheelers help to save time for them, but are affordable and super easy to maintain. With a 100% financing option and longer repayment tenure, a two-wheeler loan is an excellent solution for women looking to grow in their life.
*Terms and conditions apply. Please note that SMFG India Credit does not offer loans for electric vehicles.