Two-wheelers are the most common modes of transportation on urban city roads. Individuals prefer using a two-wheeler because it consumes less fuel and allows smooth sailing through heavy traffic due to its compact size. Are you applying for 2 wheeler loan?
Whether you are a salaried employee or self-employed professional, owning a two-wheeler will give you a sense of freedom, liberating you from buses, cabs, the metro, and other modes of public transportation.
Are you planning to purchase a scooter or bike with a 2 wheeler loan? Look for a lender offering funding up to 100% of its price. Here is a complete guide on two-wheeler loans, their eligibility conditions, and documentation requirements.
Reasons to Take a Two-Wheeler Loan
Two-wheeler loans are cheap and safe. Many lenders fund up to 100% of its price. With flexible repayment terms and competitive interest rates, you may plan your repayment beforehand and apply for a loan amount suitable for your purchase. When you take a two-wheeler loan, you don’t need to dig into your savings to make your purchase. As a result, your existing funds remain free, which you can invest in other instruments like insurance policies, stocks, mutual funds, and the money market for enhanced profits.
Who is Eligible for a Two-Wheeler Loan?
Most NBFCs have simple eligibility conditions that anyone looking for a 2 wheeler loan fulfills. These are a few crucial factors that may affect your loan eligibility:
- Employment: Most lenders offer two-wheeler loans to self-employed professionals or salaried employees.
- Age: Lenders expect borrowers to be in their prime earning years rather than at the beginning of their career or near retirement. Therefore, they have a minimum and maximum age limit for loan applicants. Ideally, you should be more than 18 years of age when applying for a loan and less than 65 at the loan term-end.
- Salary: Lenders check your income to ensure timely loan repayment. You must fulfill a minimum income requirement before applying for a bike loan.
- Credit Score: Lenders check your credit score to determine your creditworthiness. If you have a high credit score, the lender may offer you the lowest interest rate for a bike loan. The higher your score is, the improved will be your loan eligibility.
What Documents are Required to Apply for a Bike Loan?
Most NBFCs have minimal documentation requirements these days. They also accept scanned copies of the documents uploaded online, making the loan processing 100% paperless. Some essential documents required for a two-wheeler loan include the following:
- Identity Proof: Identity proof includes your Aadhar card, voter’s ID card, driving license, PAN card, and passport.
- Address Proof: Address proof includes your LIC policy, ration card, or any identity proofs mentioned above.
- Income Proof: Income proof includes your Form 16, salary slips, ITR, and bank statements.
- Asset Proof: Documents related to your self-owned property can serve as your asset proof.
- Photograph: Provide your recent passport size photograph.
Steps to Apply for a Two-Wheeler Loan
These are the steps to follow to apply for a 2-wheeler loan:
Compare and Select Your Lender: Compare lenders based on loan amounts, interest rates, processing charges, approval time, customer service, repayment terms, and other factors. Find the lender offering the lowest interest rate for a bike loan with favorable terms and conditions.
Confirm Eligibility: Check the lender’s eligibility conditions and ensure that you fulfill them before applying for their bike loan. Never apply for a loan you are ineligible for, as it leads to loan rejection and reduces your credit score.
Apply: Most NBFCs allow borrowers to carry out the loan application process completely online. Open their application form and enter the required personal, professional, and financial details. Give details about the two-wheeler, including its dealer name, RTO location, road price, etc.
Documentation: Finally, complete your loan application process by uploading the required documents.
Many people usually hesitate to get a loan due to the fear of lengthy and complex applications, high-interest rates, hefty processing charges, and long disbursal procedures. However, applying for a 2 wheeler loan through an NBFC makes the entire process hassle-free and instantaneous. Maintain a high credit score and carefully compare the lenders to get the lowest interest rate on bike loans.
A two-wheeler loan is a must for individuals who own a two-wheeler and want to buy a new one at the earliest. Two-wheeler loans are available for all kinds of two-wheelers, be it a scooter, bike, or scooter. The loan amount depends on the type of vehicle and its price. The documentation required should be valid proof of income such as salary slip, save documents, etc. The tenure available ranges from 1 month to 60 months and the rate of interest is fixed accordingly.
So, if you are looking to buy a new two-wheeler or bike, you might as well get it on a loan and enjoy the experience of owning your own two-wheeler. Just make sure that you take all the right precautions before purchasing something as big as a two-wheeler. When applying for 2 wheeler loans be sure to provide the following information: