What is the procedure for getting a loan for a bike?

Youngsters dream of buying their own bikes with their hard-earned money. However, financial burdens sometimes can be an obstacle to achieving this dream. Getting bikes on loan is a viable option in this situation. Lenders offer easy bike loan financing, so one doesn’t have to pay the full bike cost when one can finance it.

Two-wheeler bike loans are now available at affordable rates. Applying for it does not require you to visit the bank branch. Lenders offer mobile apps that allow you to apply instantly for two-wheeler loans. Processing fees are minimal with an easy documentation process. Some NBFCs offer low-interest rates for a two-wheeler loan.

What happens after a two wheeler loan apply online?

  • The status of your two-wheeler loan will be sent to you instantly once you fill out the online application form
  • A representative from the loan lender can assist you with all the loan formalities at a nearby branch
  • You’ll need to submit the required documents online or in person at a nearby branch for loan processing
  • You can purchase the bike of your choice once your two-wheeler loan is approved.

How to apply?

  • Access the lender’s website by logging in
  • Fill out the online application form, upload primary documents as directed, and submit your application
  • The appropriate department will contact those eligible to proceed with the loan. Disbursement of the loan will take place once it is approved
  • For an affordable monthly EMI for your loan, you must calculate your instalments and choose a suitable tenure before completing the form

Before sanctioning a two-wheeler loan to students, lenders take into account several factors. Here are a few details about it:

Features

  • Student two-wheeler loans require a minimum repayment period
  • Co-applicants are not required to have high incomes
  • For this kind of loan, the student must provide a co-applicant or guarantor
  • Banks processes documents within three days
  • Unsecured loans for two-wheelers are available to students
  • Purchasing a vehicle is not restricted to students

Documentation

  • A photocopy of the voter ID, a passport, and an Aadhaar card
  • The utility bill, bank passbook, voter ID, passport, and Aadhar card
  • A proof of income- co-borrower’s salary payslips from the past six months, a bank statement for the past six months
  • Bank statements for the last year and business proof for the self-employed co-borrower

Eligibility Criteria for a loan

Lenders have different eligibility requirements for two-wheeler loans. Nevertheless, it is the most critical factor to consider when applying and determining interest rates. To qualify for a two-wheeler loan, you must meet the following conditions:

  • Indian citizenship is required
  • At least a year must have passed since you moved to the address
  • You must work for a multinational company or have a minimum of one year’s experience in the public sector.
  • An ITR should be kept for at least one year if you are self-employed.
  • The minimum CIBIL score must be 750
  • It is essential to have a permanent telephone number
  • Ensure you have all the KYC documents, such as proof of income and an ID photo.

If your application meets the eligibility criteria for the lender you’ve chosen, the process will be smooth and hassle-free.

How much is the down payment?

In order to purchase a bike, you can pay an upfront deposit out of your pocket. In other words, by making a substantial down payment, you will reduce the amount of the two-wheeler loan and the interest rate. A larger down payment may be worthwhile if you want a lower interest rate.

Model of the bike

Unless you pay off the entire principal plus interest during the loan term, your two-wheeler is collateral or mortgage to the lender. The bike dealer may urge you to choose a bestselling or high-end model, but you should choose an affordable one.

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