Most of us long for a two-wheeler since it can fulfil a wide range of requirements. Ranging from daily office commutation, or travelling to the college/ coaching centre, to going for a casual stroll across the town, a two-wheeler proves very handy to meet all these needs.
At times, you do not have enough liquid cash to purchase a bike or a two-wheeler. Don’t worry. Now you can finance your dream vehicle in easy steps. By following some easy steps and simple documentation procedure, you can get up to 90-95% of a two-wheeler’s total price.
Step 1: Determine a budget – Before applying for a bike loan, decide your budget and repaying capacity. The EMIs to pay should be chosen with the utmost care, suiting your budget not to become a financial burden.
You can check bike loan interest rates to help calculate your monthly EMIs.
Step 2: Fill up a loan application – Once the budget is confirmed, fill your loan application form providing all relevant details with accurate facts.
Step 3: Attach all essential documents – Next, submit the documents required by the financial institution. You will be asked for your KYC details and other required documentary proofs to process your bike loan application.
Step 4: Go through all terms and conditions – Before signing the loan documents, make sure to understand all terms and conditions to enjoy a hassle-free bike ride. Pay attention to the bike loan interest rates, loan duration, monthly payments, and any hidden charges levied while applying for a two-wheeler loan.
Step 5: Sign the agreement – Finally, sign the loan agreement and go for a long drive on your proud possession.
Eligibility criteria for a bike loan
Below are the eligibility parameters to avail of a two-wheeler loan. We have made it simple with the following table to help you understand easily.
|Occupation||Salaried or Self-employed|
|Age criteria||Minimum 18 years at the time of application and maximum 70 years at the time of maturity|
|Total Loan Amount||Maximum of Rs. 25 lakhs|
|Processing Fees||Up to 3% of the total loan amount|
|Residence Status||A resident of India with residing for more than one year at the same location|
|Loan-to-value (LTV) ratio||Up to 98% of the on-road price|
|Repayment schedule||May range for a period of 60 months|
|Net monthly salary required||Minimum Rs 7,000 per month|
|Time for loan disbursal||Minimum 6 hours and maximum seven working days|
Benefits of a bike loan
A two-wheeler loan is the most preferred loan by people who want to buy a bike. Its distinct benefits include:
- On-the-spot finance: Most financial institutions have direct links with two-wheeler dealers. So, just walk into a showroom, select the bike, get it financed, and ride away.
- Ease of repayment: Bike loans are for a long tenure, so the borrowers get a sufficient amount of time to pay back their burden
- Amount financed: You can avail up to 95% of the vehicle amount, making this loan a sure hit.
- Low-income criteria: Compared to other types of loans, a two-wheeler loan is simply available to people with low income
- No CIBIL required: Most financial companies don’t check the credit score of the borrower.
- No prepayment charges: You can settle your bike loan whenever you want. There are no foreclosure charges to be paid for your early payments.
- Loan amount with all expenses inclusive: You get the loan for the overall cost of your vehicles. This includes accessories, insurance payment, and registration charges.
Make your two-wheeler dreams true and get a loan for your vehicle with the help of the simple steps explained above. Ensure to do good research before finalising a loan so that you get a loan at the lowest interest rates in the market.
Beware of frauds and the middle-man in the loan market, which may misguide you for your loan requirements.