How to Get a Two-Wheeler Loan for an Electric scooter?

Summary: Looking to buy an electric scooter but are short on funds? You can now apply for a Two-Wheeler Loan and get the finances you need!

26 Jan 2023 by Team FinFIRST

electric scooter getting charged in charging station

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Electric scooters have been gaining a lot of popularity in the recent years as they provide an environment-friendly alternative to scooters that run on petrol. While an electric scooter has a shorter range compared to a petrol scooter, it is considered to be much better when it comes to short commutes. These scooters are fuel-free and can be recharged easily. Given their eco-friendly and cost-effective features, these scooters are quickly becoming a preferred mode of transportation.

Who is eligible for an electric scooter loan?

There are multiple factors to consider while buying an electric scooter. To begin with, you need to pin down on the make and model based on your preferred speed, quality, braking capability, tire quality, and so on. Also, consider the scooter’s battery life. This involves not just the average charges the scooter requires but also the type of battery it functions on. Lastly, take a decision on the purchase based on your budget and needs.

What documents are required?

What interest rates can I expect?

Is battery leasing or swapping included?

Here is how you apply for a loan to buy an electric scooter:

·Does loan include accessories?

The first thing you need to do is contact a loan provider. It is advisable to go for a reputed lender that is transparent about the terms and conditions to avoid complications during the time of repayment.

· Filling out the application form

Fill out the lender’s application form and provide information such as name, address, phone number, and so on.

· Submit the required documents

Before approving your loan application, the lender will evaluate certain documents. These two wheeler loan documents include your PAN card, Aadhaar card, driving license, passport, and so on. Earlier, the documentation process that lenders had set in place was considered to be somewhat of a hassle. However, this is not the case today as you can now upload all the required documents online quickly and conveniently.

What are the factors to consider before applying for a two-wheeler loan?

Here are a few factors that you need to consider before applying for a two-wheeler loan:

· Eligibility

The eligibility parameters will vary depending on the loan provider. Therefore, before applying for a loan, it is imperative to check the lender’s eligibility criteria for availing a two-wheeler loan.

· Credit score

Any financial institution will check its applicant’s credit score before approving their loan application. This is because a credit score is a sound indication of the applicant’s financial management.

It is always considered best for an individual to maintain a credit score above 750 before applying for a loan.

· Documents required by the lender

After filling out the application form, you will need to submit certain documents to your lender. These documents would include your address, identity, and income proof. Once you have submitted these documents, the lender will then evaluate them before deciding whether to approve or reject your loan application.

· Interest rate of the loan

It is important to compare the rates offered by different loan providers. A simple search on the internet would get you multiple results of lenders offering various interest rates for two-wheeler loans. You can also use a two-wheeler EMI calculator to determine your monthly payments and plan your finances accordingly.

Before applying for this loan, make sure to pick a lender that offers favourable loan terms. IDFC FIRST Bank offers a Two-Wheeler Loan up to ₹20 lakh with interest rates starting from 9.99%. You can also get a tenure of up to 36 months to pay off the loan’s monthly instalments comfortably.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.