Pre-approved two-wheeler loans: Know their benefits

While motorcycle loans come easy from reputed banks and NBFCs, have you considered financial privileges like pre-approved loans to purchase your vehicle? As the name suggests, obtaining pre-approved two-wheeler loans is even easier. If you uphold high creditworthiness, financial institutes would be ready to finance your purchase.

Flexible loan repayment terms, low- loan interest rates, and reasonable processing fees: all these factors define the loan benefits. Interestingly, pre-approved loans are collateral-free, and are available instantly. Let’s dig into this matter deeper so that you can understand the perks of taking a pre-approved two-wheeler loan.

What is a pre-approved two-wheeler loan?

Banks and financial institutions offer loans to individuals whom they consider to be financially responsible. From time to time, they offer pre-approved loans as a financial privilege to these people. So, rather than reaching out to your bank or an NBFC to obtain a two-wheeler loan, you can qualify for a pre-approved based on the available offers.

However, banks offer pre-approved loans for purchasing two-wheelers only to selected individuals. In case you have previously obtained a loan from the financial institution in the past and paid it off responsibly, you have a greater chance for qualifying for these loans. Mostly, banks provide these financial schemes to individuals with a neat repayment record and a high credit score. Moreover, the interest rate is pre-determined, and it is often lower than the existing rates in the market.

When you receive an offer for a pre-approved loan to purchase your motorcycle, it means that the creditor has already assessed your financial stature. They consider you to be a responsible borrower, and this explains why they reach out to you with the offer. Your income level and job stability are two of the most crucial factors that financial institutes consider. The approval and disbursal of these loans are much faster compared to traditional two-wheeler loans.

How does a pre-approved two-wheeler loan work?

Once processed and disbursed, a pre-approved motorcycle loan works just in the same way as a normal two-wheeler loan. The bank calculates your EMI based on the principal amount and interest. Each month, you need to make a payment to repay your loan. Based on your repayment capacity, you need to choose the capital and loan tenure. 

At times, the bank may be offering much more capital than you actually need to purchase your motorcycle. Based on your loan requirements and repayment capability, you need to choose the loan amount and tenure.

You can finance around 80% to 90% of the value of your motorcycle through a pre-approved two-wheeler loan. The rest of amount would be your down payment, that you need to pay instantly out of your pockets.

Why should you go for a pre-approved two-wheeler loan?

For motorcycle owners, getting a pre-approved loan to purchase the vehicle would be a smart choice. Here are some of the pre-approved loan advantages that explain why you should go for these loans rather than applying in the traditional process.

Shorter processing time

Since the bank of NBFC has already evaluated your financial profile, they already have adequate information on your employment or business. Also, they are aware of your credit history, repayment habits, and money-handling traits. Since they already consider you to be a responsible borrower, they take a shorter time to process the loan. If you need to make the purchase immediately, a pre-approved loan for motorcycles would come in handy.

Instant disbursement

Reputed banks and NBFCs ensure instant disbursal of the loan amount to borrowers after checking the loan documents. Rather than waiting for five to seven business days to get the amount transferred to your bank account, you can obtain a pre-approved two-wheeler loan instantly. Why wait for a week or so when the bank is ready to provide you with the financial privilege instantly?

No rejection chances

One of the valid reasons to opt for a pre-approved loan for purchasing your motorcycle is that, you have almost no chance of getting the loan denied. You have already fulfilled the loan eligibility criteria to obtain this loan. That’s the reason that bank or financial institution is offering the benefit to you. 

Remember, getting a two-wheeler loan application rejected can affect your credit score. Rather than taking the risk, it’s wise to apply for the loan that the bank is already offering you. The chances of getting your loan approval are higher with pre-approved offers.

Minimum paperwork

The time for loan process and paperwork involved matter a lot when you need to acquire a two-wheeler. These days, reputed banks and NBFCs have taken the process online. With minimum paperwork and verification involved, you can qualify for the loan instantly. Particularly, when you have an urgency to purchase your motorcycle for business purposes, it pays to vouch for a pre-approved loan.

Flexible tenure

Just like traditional two-wheeler loans, pre-approved loans are also available with flexible tenures. This implies that you can choose any tenure up to 8 years with established banks or NBFCs. So, if you want your EMI to be manageable, you have the option of choosing a longer tenure. Since the loan is pre-approved, you have the opportunity to scrutinize the repayment window before applying for it.

Proper financial planning

Purchasing your two-wheeler becomes worry-free when you manage to obtain a pre-approved loan. Since you would be investing a sizable part of your finances, proper planning is essential. With traditional loans, you never know whether the bank would approve the financial privilege. 

However, things work differently with pre-approved loans. So, once you receive an offer from your bank or an NBFC, you can allocate a fund to make the down payment. Borrowers need not block any other chunk of their money since the bank has promised to finance rest of the amount.

Take Away

You might be receiving pre-approved two-wheeler loan offers from your banks frequently. Scan your emails and inbox from time to time to find out whether you already have any of these offers. Accordingly, you can make your loan decision. 

However, be vigilant enough before applying for the loan. Consider the standard factors like processing fees, pre-closure charges, hidden charges, and any other additional expenses you may have to incur. With the right bank or NBFC, you can confidently proceed with your pre-approved loan to purchase your two-wheeler.