If the phrase “pre-approved loan” makes you assume that getting one is simple, you are correct. That is if you have a decent credit history and meet a few additional requirements. Pre-approved two wheeler loans are available to those whose creditworthiness has been determined by financial institutions to be acceptable. These no-collateral short-term loans are typically made available to existing customers.
Pre-approved loans are processed quickly because the lender has previously evaluated your reliability as a borrower. You also get competitive interest rates and flexible repayment plans. So, if you want to get pre-approved for a two-wheeler loan, consider these four variables:
4 Ways to Get Preapproval For A Two-Wheeler Loan
1. Credit Rating
Your credit score is one of the first things any financing organization will look at when they get your two-wheeler loans for Women application.
2. Existing Debt
If you have ever taken out a two-wheeler loan, this is a crucial thing to consider. In addition to your credit score, most financial institutions look at your existing loans and the total debt you owe to lenders. Additionally, they check to ensure you have made all your previous payments on time. If you have, your credit score improves. Meanwhile, even one missed or delayed payment can jeopardize your chances of receiving a pre-approved loan offer.
3. Repayment In Full
Aside from regular EMIs or Easy Monthly Installments, every loan in India has two additional repayment options: part-payment and prepayment.
Part payment means the borrower pays a lump sum to the lender that is less than the principal amount outstanding. However, it also covers a considerable portion of the overall sum owed.
On the other hand, prepayment is the practice through which the lender settles the entire loan amount before the formal end of the tenure. In other words, this procedure is also known as foreclosure. It is often considered good repayment practice by new lenders. It shows that you are financially secure and well-off enough to pay off your loans (in full) in advance.
4. Limited Inquiries
Credit rating organizations consider four major elements when calculating your credit score. One of them is the number of inquiries made by financial institutions or lenders in a particular month. These are difficult questions. The more inquiries you have in a month, your credit score will be lower. Therefore, you should keep the difficult criteria to a minimum to get pre-approved for a two-wheeler loan.
When looking for a pre-approved loan, do your homework and learn about lenders who offer pre-approved loans. Please choose up to two lenders and then share your eKYC information with them. This way, you’ll only have two serious inquiries on your credit report, reducing their influence and raising your chances of approval.
In India, electric bikes, scooters, or other two-wheelers are increasingly becoming essential as more individuals prefer personal mobility over public transportation. You may quickly buy a new bike by getting pre-approved for a two-wheeler loan. Furthermore, you can modify the loan terms to suit your needs.