Advantages of Bank of Baroda Two-Wheeler Loan
16 May 2022
Table of Content
What Is Baroda two wheeler loan?
Why should you opt for a Bank of Baroda two wheeler loan?
Motorcycles are the primary means of transportation in a vast majority of Indian households. Two wheelers also make it easier to manoeuver India’s busy streets very quickly. Hence, India is among the top 4 largest motorcycles markets across the world. Also, good two wheelers can get fairly expensive, costing above Rs 1 lakh. A two-wheeler loan can help you afford the bike of your dreams with ease. In this regard, the Bank of Baroda two-wheeler loan offers easy funding for your vehicle. Interested to know more? Let’s take a look at the features of the Baroda two-wheeler loan.
What Is Baroda two-wheeler loan?
Bank of Baroda offers two-wheeler loans with affordable equated monthly instalments (EMI). The interest rates are affordable as well, with nominal processing fees and higher loan amounts. That way, you can purchase a new motorcycle with ease and not have to worry about the finances involved.
Why should you opt for a Bank of Baroda two-wheeler loan?
Saving up cash to buy a motorcycle can get difficult and tedious. With so many other bills and financial responsibilities, your dream of buying a scooter or bike may be a long way off. A two-wheeler loan helps you get the vehicle you want when you want it by giving you ready finance. When you choose bank of Baroda as your two-wheeler financer, you also enjoy many more benefits. To that effect, here are the key reasons why you should consider Bank of Baroda’s two-wheeler loan for your brand-new motorcycle.
• Attractive interest rates
The interest rate is the most important determining factor when it comes to any type of loan. Bank of Baroda keeps its interest rates affordable so that borrowing becomes easy and accessible. The Bank of Baroda Two-Wheeler loan interest rate is as follows:
Baroda Repo Linked Lending Rate (BRLLR) + Strategic Premium + 4.00%
If you are an employee of Bank of Baroda or were previously working with the bank, you only need to pay the BRLLR and the strategic premium. If you opt out of the credit insurance cover, an additional risk premium of 0.05% is applicable. (Mandatory requirement of credit shield in form of Term Life Insurance or Group Credit life Insurance for loans above Rs. 3.00 Lakhs)
• Minimal processing charges
With effect from 2019, Bank of Baroda levies a processing fee equivalent to 2% of the loan amount. The minimum fee is Rs 250 + GST. For example, if you apply for a two-wheeler loan of the amount of Rs 60,000, the processing fee would be 2% of Rs 60,000 = Rs 1200. No pre-closure charges
Pre-closure or foreclosure or prepayment penalty is a penalty fee that lenders charge you if you wish to repay the loan before your tenure ends. However, Bank of Baroda does not charge its customers any kind of pre-payment penalty if they choose to close their loan before its set tenure. This way, you can actually choose to pay off your two-wheeler loan before its due tenure in case you want to free up credit for other loans or financial obligations in the near future.
• Higher loan amount of up to Rs 10 lakh
Motorcycle enthusiasts around the country can now go ahead and buy the two-wheeler of their dreams. The maximum limit of the loan amount from a Baroda two-wheeler loan is Rs 10 lakh. With this kind of a high loan amount, you can choose from among the best bikes or superbikes available.
• Speedy approvals and disbursals
A two-wheeler loan requires minimal documentation, unlike loans or home loans, and get easily approved easily. If you are salaried or self-employed, the common documents required by Bank of Baroda are:
- Application form with passport size photos,
- Photo ID with age proof (Aadhaar card, Passport, Driving License),
- Address proof (Aadhaar card, Passport, Driving License, Voter ID, utility bills, bank statements or passbooks, rent agreement),
- Last 6 months’ bank statements and
- Two-wheeler quotation
Salaried applicants are also required to submit their salary slips and Income Tax Returns or Form 16. Self-employed applicants can submit their Income Tax Returns, business proof and balance sheets.
• Easy To Acquire
Two-wheeler loans only require you to fulfil the gross monthly income (GMI) criteria; higher credit scores are not a prerequisite at all. So, whether you are salaried, businessperson or a farmer, you can easily avail of a two-wheeler loan. Another criterion to remember is that you must be at least 21 years of age; the upper age limit is 70 years after the repayment period.
• Flexible repayment tenure
With affordable EMIs, you can conveniently repay your two-wheeler loan at a pace that suits your budget and other financial commitments. The Bank of Baroda two-wheeler loan offers a repayment period of 5 years (60 Months), which takes the pressure off of loan EMIs. You can choose the desired EMI plan so that the loan does not come in the way of your financial planning. If you are wondering how your monthly payments will look, you can always use the Bank of Baroda two-wheeler loan EMI calculator to check your monthly payments.
• Tax benefits for business use
As a self-employed businessperson, if you use the two-wheeler for business purposes, you are eligible to claim tax benefits. Fuel cost, maintenance charges, two-wheeler insurance and loan interest repayments can be deducted from your taxable income, under section 80C of the Income Tax Act, 1961. Remember, tax deduction is not applicable for motorcycles that are bought for personal use.
• Helps build credit
A two-wheeler loan is sort of a stepping stone towards building your credit score. While these loans do not require you to have high credit scores, any other loan, such as personal, car or home loan, need higher credit scores. Or else, you may end up with costly interest rates. Hence, a two-wheeler loan is the easiest way to start building a good credit score; and good credit score comes with timely repayment of the loan.
Since two-wheeler loan EMIs are pocket-friendly, you have more room to invest your funds. This helps build financial discipline, which is crucial considering our expenses and purchasing power. Also, you have funds ready for emergencies.
Bikes and scooters are by far the most affordable means of transportation in India. Be it a corporate professional, a businessperson or a farmer, a bike serves everyone. Firstly, higher credit scores are not necessary, and the loan is easy to acquire. All you need to present are your ID and address proofs and income and income tax return proofs. Plus, affordable interest rate means affordable EMIs, allowing you to make efficient use of the available funds. If you are new to loans, a two-wheeler loan is the easiest way to build your credit score. A Baroda two-wheeler loan offers attractive interest rates, higher loan amounts of up to Rs 10 lakh, flexible repayment tenures up to 5 years and minimal processing fees.
For more information on how you can apply, reach out to us today.
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