Gone are the days when you had to consider a purchase several times. With so many loans available in many categories, everyone can fulfil their dreams without hesitation. We’ve all heard of personal loans, loans against property, and other types of loans. But did you know you can now finance your bike with a 2 wheeler loan and bring your dream ride home? You can get up to ₹1,00,00 through this loan depending upon your eligibility and interest rate factor.
After you decide which two-wheeler you want to purchase, you just have to check your eligibility criteria and see how much loan you can avail of from this loan. Once you figure out that you are eligible for a two-wheeler loan, you just have to submit your documents for bike loan and wait for it to get approved. This was a quick overview of how a bike loan works. Continue reading to learn more.
What Are the Features of a Two-Wheeler Loan?
Have a look at the features of a bike loan:
- Quick loan approval
- Flexibility in a repayment period of up to 48 months
- Loans available from ₹10,000 to ₹1,00,000
- Affordable and attractive rate of interest
- A high loan-to-value ratio of up to 95%
Important Points to Keep In Mind Before Applying for a Bike Loan
Before you apply for a bike loan, you should keep a few things in mind, like:
- Determine the type of two-wheeler you wish to buy depending on your needs so you know how much bike finance you require.
- Examine your finances and credit score to estimate your loan eligibility and payback capacity.
- Do not apply for a specific loan amount simply because there is a tempting loan offer or an enticing present waiting for you.
- Before submitting an online application, double-check all of the information.
- Check out the various repayment alternatives.
- Applying for a loan that you cannot afford to repay is a bad idea that can lead to financial problems in the future.
- After receiving approval, read the loan agreement documentation as well as the terms and conditions before signing.
- Avoid applying for several loans at the same time.
What Are the Eligibility Criteria for a Bike Loan?
The eligibility criteria for a 2 wheeler loan are as follows:
- You must be an Indian citizen.
- You must be at least 18 years old.
- Both salaried and self-employed people can apply for this loan.
- There is no such thing as a fixed monthly income need.
- If you are a salaried employee, you must have worked for at least one year with your present company and have at least six months of experience.
- In the case of a self-employed person, you should have worked in your present industry for at least a year.
What Are the Necessary Documents for a Two-Wheeler Loan?
KYC documentation and evidence of income are necessary for a two-wheeler loan. However, keep in mind that documents for bike loan for self-employed individuals differ from those required for salaried individuals. Here is a list of all the necessary documents.
For salaried individuals:
- Filled loan application form
- Coloured passport size photo
- Age proof (any one): Passport/ PAN Card/ Driver’s License/ Birth Certificate
- Identity proof (any one): Aadhaar card/ Passport/ PAN Card/ ID Card issued by the Central Government/State Government/PSUs
- Proof of residence (any one): Ration Card/ Utility Bill/ Driver’s License/ Aadhaar Card/ Passport/ Property or Municipal Tax Receipt
- Income proof: last six months’ salary slip, Bank Account Statement for the Previous Six Months, Form 16 and Certificate of Salary
- Proof of Job Continuity: Current employer’s job offer letter and former employer’s experience certificate.
For self-employed individuals:
- Filled loan application form
- Coloured passport size photo
- Identity proof (any one): Aadhaar card/ Passport/ PAN Card/ ID Card issued by the Central Government/State Government/PSUs
- Proof of residence (any one): Ration Card/ Utility Bill/ Driver’s License/ Aadhaar Card/ Passport/ Property or Municipal Tax Receipt
- Proof of office address (any one): Utility Bill/ Property Documents/ Rent Agreement/ SSI or MSME Registration Certificate/ Maintenance Bill
- And Proof of business existence (any one): Company Registration Certificate/ Copy of Tax Registration/ Shop Establishment Proof
- Income proof: Bank statement from the previous six months and recently Filed Income Tax Return.
We can conclude that 2 wheeler loan has made it easier for everyone to apply for a loan by removing all of the barriers that previously existed. Now you require only documents for bike loan to get approved while sitting in the comfort of your own home. You can also compare several EMI alternatives by entering your interest rate and loan term to find which one works best for you. So if you are planning to get a bike, we recommend that you choose a two-wheeler financing option.