Faster, convenient, and easier to navigate are some features that you get from two-wheelers. It makes them a popular mode of transport. A bike certainly makes life easier, but you may not be able to afford a down payment. Owning your dream bike is easy with a loan, and we’ll tell you how to apply for a loan in this article with the documentation and eligibility criteria. Here is a step-by-step guide to help you choose the right Two Wheeler Loan.
How to Choose the Right Loan?
After you’ve decided what bike model you want, the next step is to find the right loan for it. There are many two-wheeler loans online, but the following factors should be considered when choosing a loan:
- Loan Amount: The amount of loan you get would depend on your credit score. It measures your creditworthiness and is calculated after checking your loan repayment history. A credit score of 700 and above is generally required by most lenders. Individuals with a high credit score can get higher loans.
- EMI: The monthly repayment of your loan
- Processing Time: The time between applying for the loan and sanction by the lender
- Offers and Discounts: Most lenders offer free stuff or discounts during the festive season
- Repayment: The duration of the loan repayment period.
- Downpayment: Some lenders offer zero downpayment facilities so that no upfront payment is required.
- Loan To Value: The ratio of the loan to the market price of the bike.
The following are the eligibility criteria for bike loans:
- Minimum and Maximum Age: You need to be at least 18 years of age and not more than 65 years of age to apply for a bike loan.
- Income: Your income should cover the monthly EMI for the bike loan
- Employment Status: You should be working at your current place of employment for at least a year.
- Residence status: Your current residence should be at least a year old.
Documents Required For a Bike Loan
To apply for a bike loan you will require the following documents:
- If you are a Government employee, the last 3 months’ salary slips will be required. Private sector employees need salary slips including deductions made.
- Form 16 issued by the employer
- If you are a self-employed person, you need to provide a copy of your IT returns
- KYC documents include address proof and identity proof. Acceptable documents for address proof are Aadhar card, Driver’s Licence, Electricity Bill, and Bank Passbook. For identity proof, you can provide your Aadhar Card, PAN Card, or Driver’s Licence.
Calculate Your EMI
Your monthly expenditure and EMI should not exceed 40% of your disposable income. You can find out your monthly EMI using the Two Wheeler Loan EMI Calculator on the website. Don’t forget to include your emergency fund when calculating your monthly cash outflow. If you have a high credit score, you can negotiate with the lender for a longer repayment period so that you have a lower EMI.
Loan Application Process
The online loan application process is fast and hassle-free. If your documents are in order, your loan is approved in minutes. Make sure you have all the required documents handy when applying for a bike loan online.
You can fulfil your dreams of owning a two-wheeler with lending institutions. The documentation is minimal, and the interest rates are competitive. You don’t need to make any down payment with a 100% loan to value ratio for some applicants. Live a comfortable life and travel wherever you want with your dream bike.