How to Get a Bike Loan in 4 Easy Steps

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How to Get a Bike Loan in 4 Easy Steps

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.

OccupationSalaried or Self-employed
Age criteriaMinimum 18 years at the time of application and maximum 70 years at the time of maturity
Total Loan AmountMaximum of Rs. 25 lakhs
Processing FeesUp to 3% of the total loan amount
Residence StatusA resident of India with residing for more than one year at the same location
Loan-to-value (LTV) ratioUp to 98% of the on-road price
Repayment scheduleMay range for a period of 60 months
Net monthly salary requiredMinimum Rs 7,000 per month
Time for loan disbursalMinimum 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.

Conclusion

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.

amanv1067

Author Since: April 25, 2021

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