Have you been thinking of buying a two-wheeler for a long time but have not been able to because your budget is not allowing you to now? Do not worry because this is where a two-wheeler loan offers you the perfect solution for your problem. Owning a two-wheeler gives you a sense of freedom to travel anywhere without having to think much about parking spots. It is also easier to drive a two-wheeler on busy roads as compared to cars. You will get to see a wide array of options when it comes to buying a two-wheeler, each one with a different feature and a different price scale. Now you do not have to compromise on a better option since a two-wheeler loan gives you the liberty to pay in EMIs making your job easier. Coming up is everything that you might want to know about a two-wheeler loan in India.
Eligibility criteria
The individual applying for the bike finance or scooter loan needs to meet the following criteria.
- Anyone who is 21 or above can opt for two wheeler loan.
- The maximum age of the applicant who is allowed to apply for a two-wheeler loan is 65 years.
- A maximum of Rs.10 Lakhs can be sanctioned but it might vary depending on the cost of the two-wheeler and the applicant’s ability to pay the EMI.
- Net monthly income of the applicant should be Rs.18,000.
- The applicant may be salaried or self-employed.
- In case the applicant is salaried, he or she should have a minimum of a year of work experience.
- In case the applicant is self-employed, the business tenure of the individual should be 5 years. Also, the individual is required to submit the proof of ITR of at least 2 years to avail the loan.
- A healthy CIBIL score is usually preferred while applying for the loan.
Documents required
Proof of identity
Identity proof of the applicant which could be in the form of an Aadhar card, PAN card, passport, driving license or voter id.
Proof of address
Address proof for the applicant like electricity bill, water bill, telephone bill or any other utility bill which is not more than 3 months old.
Proof of age
Birth certificate, passport, PAN card, voter id card or employee id card for the proof of age of the applicant.
Photo identity
A recently taken passport size photograph of the applicant is to be submitted at the time of verification.
Proof of income
Salaried applicant
In case the applicant is salaried, he or she has to fill and submit form 16 along with the last 3 months of salary slip and bank account statement showing salary credit.
Self-employed applicant
In case the applicant is self-employed, he or she needs to show proof of ITR of the last 2 years along with bank account statements of the last 3 months.
Two-wheeler cost quotation
The applicant needs to submit a quotation for the cost of the selected two-wheeler from the dealer.
Once the above documents are ready, submit the application form for the two-wheeler loan along with the documents for verification. It might take a few days before the loan is approved depending on what lender you choose.
Mode of application
Keeping in mind the convenience of the customers, the lenders have now come up with an online mode of the two-wheeler loan application. They have their online portals for two wheeler loan, gold loan etc, where you can submit the softcopy of the above-mentioned documents along with the online application without the need of being present physically.
Rate of interest
The rate of interest levied on bike finance or a scooter loan varies from lender to lender. It is usually found to be around 10-15 per cent per annum.
Repayment of loan
Repayment schemes for a two-wheeler loan are usually found to be quite flexible. The borrowers have the liberty to opt for the scheme that is best suited to their interests. The loan amount needs to be repaid in around 6-60 months depending on the terms and conditions as laid by the lender. There are various EMI options available. Use the EMI calculator and select the best option after carefully accessing your finances.
