Although most Indians ride two-wheelers, not every person can afford to buy a two-wheeler by paying a lump sum.

This is why they opt for the more convenient option, i.e., apply for two wheeler loan. But there’s one question that looms over every customer—how does a two wheeler loan impact your credit score?

If you’re wondering the same, read on to find out the answer.

Understanding the Loan Structure

Leading financial institutions provide a fixed duration for loan repayment. The most popular and preferable loan repayment method is Equated Monthly Installments (EMIs).

But approving a loan, banks/lenders follow a system to verify the applicant’s creditworthiness. Based on this system, the financial institution must evaluate an applicant’s transaction records obtained from an organization named CIBIL.

These records are eventually translated into a 3-digit credit score known as the CIBIL score. Now, if you apply for two-wheeler loan, here are some of the key factors that can affect your credit score. Let’s check those out.

On-time Payment of EMIs

When you take a two-wheeler loan, you need to repay within a given duration through EMIs. The best way to maintain a good CIBIL score is by paying the EMIs on or before the due date. If you fail to do so, the debt will accumulate, resulting in higher interest rates.

Duration of Credit History

Banks/lenders keep track of your credit history in detail. If you can show a good repayment history, it can positively impact your score. Banks usually provide two-wheeler loans for a period of 12 to 48 months. Now, if you decide to repay the loan within 36 months and manage to make all the payments on time, this will reflect on your report and automatically improve your CIBIL score.

Credit Mix

Two-wheeler loans help customers display the much-needed credit mix in their profile. A good credit mix is ideally a combination of loans and credit cards. Individuals having a credit mix generally notice faster growth in their credit score.

To cite an example, let’s say you currently have a home loan, but you also need to buy a bike. In this case, a two-wheeler loan is a better option than getting a personal loan. This is because two wheeler loan interest rate are relatively lower with less strict credit norms. If you’re looking for a feasible lender, go for IndusInd Bank, as it guarantees quicker approval complemented by minimal documentation.

Conclusion

Remember, your CIBIL score is a crucial factor in securing loan credit. However, you can always tone down its monopoly by selecting the right lender.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author 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.

If you’re planning to buy a light commercial vehicle, the most feasible way of payment could be a Light Commercial Vehicle Loan.

Commercial vehicles are costlier than personal ones. However, a commercial vehicle is a necessity for a lot of business owners. But most of the buyers worry about financing a commercial vehicle. This is where a light commercial vehicle loan can help you out. In fact, most buyers or organizations prefer to finance their purchases through a loan. Availing of a loan also helps you plan your finances better. If you’re a business owner, it will help you ensure smooth business operations. Here are a few pointers that can come in handy if you apply for a commercial vehicle loan.

Approval Process

Once you submit the required documents, the bank can take up to a week to get your loan approved. However, the time taken to sanction commercial vehicle loans can vary depending on the bank/lender.

Usually, banks disburse loans directly to the vehicle dealer rather than the buyer. IndusInd Bank, one of India’s leading banks, offers affordable light commercial vehicle loans. With quicker approval (within just 48 hours) and flexible repayments, this loan is preferable by all.

Loan Duration

The tenure of the loan depends on the borrower’s requirements. Banks ideally fund up to 100% of the chassis (engine, driveshaft, suspension, etc.). At the same time, the funding for the body can be extended based on prior experience or any unique addition. In most cases, the loan duration ranges from six to sixty months. For instance, IndusInd Bank provides a flexible repayment tenure of several months.

Interest Rates

Interest rates on commercial vehicle loans again vary across banks or lenders. The interest rate also depends on other factors such as the borrower’s credit history, business turnover, number of vehicles owned by the loan applicant, etc. IndusInd Bank offers relatively lower interest rates on light commercial vehicle loans.

Processing Charges

Processing charges are a one-time, non-refundable fee levied by banks for every loan processed and sanctioned. These include processing fees, vehicle valuation charges, stamp duty, etc. 

Repayment

The easiest way to repay commercial vehicle loans is through monthly EMIs. If you wish to prepay your loan, you will incur a penalty of the outstanding loan amount.

Conclusion

If you keep these pointers in mind, you are all set to apply for a light commercial vehicle loan. However, make sure you get in touch with a professional from a bank to understand all the necessary details you need to know before applying for a light commercial vehicle loan. You can easily get in touch with an expert from IndusInd Bank and clarify your doubts. To find out more about light commercial vehicle loans, visit IndusInd Bank.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author 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.

Buying a car can be a necessity and, at times, even an aspiration. Either way, it is a significant financial decision that can use up all your savings.

For many, even savings don’t suffice for purchasing a car. That’s when you need to apply for a car loan. The good thing is that a car loan comes at a lower interest than a personal loan. Besides, you can easily apply for car loan online.

The Correct Approach

When you’re out in the market, you’ll encounter many car loans that different financial institutions offer. So, how would you know which car loan to apply for?

The first step is to compare the various offerings based on the benefits. For instance, some banks have tie-ups with specific vehicle dealers and offer discounted rates with quicker processing times. Some lenders provide preferential rates to regular customers or existing home loan borrowers in other cases.

IndusInd Bank’s new car loan offering comes with a flexible repayment tenure along with quick documentation right at your doorstep.

Things to Keep in Mind

To avail of a new car loan online, you should have a good credit score. Most lenders prefer borrowers who can show a high credit score of 750 or more.

This could also help you negotiate a better deal, meaning lower interest rates. On the other hand, a poor credit score might compel you to settle for a car loan with heavy interest. Some lenders might even reject your application based on your credit reports.

So, it’s always a plus if you can maintain a high credit score. This helps lenders verify whether you’re capable of repaying the loan on time.

Extra Charges

Another point to remember is that a car loan entails additional charges such as repayment, processing fees, valuation, etc. Most banks or lenders typically fund up to 80% – 90% of the car’s on-road price. Then there are others that finance 100% of the car’s valuation cost, but it’s subject to terms and conditions. If you apply for a loan at IndusInd Bank, you will get funding that you repay through pocket-friendly EMI options.

Documentation Details

As with all other types of loans, a car loan also requires the submission of a few key documents. Besides the primary KYC documents and bank statements, the eligibility criteria are different for different applicants.

If you’re a salaried individual, you must show proof of income by producing 3 months’ salary slips and tax returns. The filing of IT returns applies to self-employed individuals too. If an applicant does not have income proof, they are usually asked to produce property documents or business proof.

Conclusion

Interest rates on car loans depend on your job profile, credit score, loan amount, and the terms & conditions of the chosen lender. So, when applying for a car loan online, make sure you read the terms and conditions properly or consult bank personnel for specific details to get the best deal.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author 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.

Today, credit cards are more than just convenient financial instruments. Considering their wide utility, they’ve become a lifestyle accessory, a necessity that opens you up to a world of exciting benefits and saving opportunities. It allows you to manage your expenses with ease, helps you build a solid credit history, and offers additional perks.

The best part? You can easily get a credit card online via a simple paperless process with IndusInd Bank! We offer you a wide range of credit cards to cater to your diverse needs. However, here comes an important decision. You need to choose a suitable card that caters to your needs as the right card can make your financial life much simpler.

So how do you go about it? Here are simple steps to make a credit card comparisonand identify your ideal credit card.

Identify Your Spending Habits

To ensure you get the best types of credit cards, start by analysing your spending habits. Ideally, a credit card can help you achieve one of these objectives-

– To make big-ticket purchases

– To build or improve your credit score

– To earn rewards on transactions and maximise savings

The best credit card for you would be the one that meets your specific needs. For instance, if you frequently shop online, you can apply for a Legend credit card from IndusInd Bank that offers you reward points on every domestic purchase and accelerated reward points on weekends

Understand the eligibility criteria

Once you know your requirements, figure out which type of credit card you are eligible for based on your credit history and financial profile. IndusInd Bank has an easy-to-meet eligibility criterion so that you can get your credit card with ease.

Also, IndusInd Bank offers a simple online application process. All you need to do is visit our website, check your eligibility and apply by providing your Aadhaar card and PAN card for a hassle-free process!

Compare the Additional Fees

There are several additional fees associated with various types of credit cards. For instance, at IndusInd bank, you only have to pay the minima annual fees if applicable, late payment fees, over-limit charges, etc. Therefore, do your due diligence and make a credit card comparison based on these charges to ascertain how much you’re willing to pay.

In addition, look for a credit card that falls within your budget and allows you to manage your finances efficiently. Here, it will be smart to ensure that the rewards and benefits you are earning exceed the overall charges you are paying.

Evaluate the Features and Incentives

IndusInd Bank credit cards come with a range of delightful benefits that can make your life easier.  You can enjoy a slew of features such as welcome bonuses, annual fee waivers, insurance cover, automated bill payments, easy EMI, among other things.

Further, you can enjoy several exciting incentives in the form of cashback, discounts, offers, reward programs, and extra privileges. For instance, if you travel a lot, you can apply for our Club Vistara IndusInd Bank Explorer credit card that comes with zero foreign currency mark-up on international spending, complimentary business class ticket vouchers, top-notch reward programs, and more.

So, when you apply for a credit card online with IndusInd Bank, do look for these features depending on your needs.

The Bottom Line

Now that you know how to choose the right credit card, you can make the best choice that complements your lifestyle. Get in touch with us at IndusInd Bank to compare the various benefits and features of our credit cards and enter the world of financial convenience! Visit us today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author 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.