As per recent reports, there are more than 21 crore registered two-wheelers across India. This number is expected to increase as most Indians prefer buying bikes or scooters above four-wheelers because of their affordability and low maintenance cost.
But unfortunately, the upfront costs of owning a motorcycle can temporarily disturb your financial planning or savings. To avoid this, you can purchase a bike on EMIs by following a few simple steps.
How to secure a loan for two-wheelers easily?
Knowing all the steps involved is essential before approaching a lender for a Two-wheeler Loan.
Step 1: Verify the eligibility criteria for a bike EMI
Checking your preferred lender’s Two-wheeler Loan eligibility criteria is recommended even before preparing for the loan. However, you must remember that all lenders do not share the same criteria. Therefore, even if you are unable to bag a loan deal from a particular bank, there’s no reason to lose all your hopes.
To check your loan eligibility terms, visit the official website of a lending institution. Navigate to the eligibility option under the Two-wheeler Loan section. You will find specific conditions related to required documents, minimum age, minimum monthly income, etc. Each prospective loan applicant must satisfy all these to qualify for the loan.
If you cannot meet a particular financial institution’s bike loan criteria by a nominal margin, you may try contacting their officials and requesting certain relaxations. But under no means should you send an application if you are ineligible, as rejected loan applications negatively impact your credit report.
Step 2: Estimate monthly pay-outs using an online Bike Loan Calculator
This is the next crucial step in determining a favourable bike EMI amount before the lender sanctions a loan. Getting this decision wrong may result in additional burdens down the line.
Although EMI calculation can be done manually, using any online calculator is highly suggested. It can help avoid confusion by giving accurate results related to your loan EMIs.
You must put the desired loan amount, tenure and interest rate (as confirmed by your lender) to find the results. Keep on adjusting the loan tenure until you feel the instalment amount that matches your repayment capacity.
Step 3: Apply for the Bike Loan
Now, you move on to the most crucial step, i.e., applying for a loan for two wheeler. Visit a nearby branch or proceed to their official website or mobile app to apply for the loan.
The lender will ask for basic details in any of the above modes, online or offline. Provide your personal and employment information accordingly and submit the loan application form. Considering your application passes this stage, personnel working for the institution will contact you via phone for last-stage verification.
After completing all these stages, the loan gets approved and disbursed to your bank account. Even if you can afford a bike by paying the total amount upfront, it is better to go for EMI options, as a loan comes with multiple benefits. A few of them have been listed below.
What are the benefits of taking a bike on EMIs?
The primary benefits include:
Instalment amounts can be optimised to fit comfortably into your monthly budget allocations. This benefit lets you buy your desired model without burning a hole in your pocket. Otherwise, the owner often surrenders to financial insecurities after purchasing a vehicle in cash, lowering the amount of their emergency funds.
You can compare the offers of various lenders to see who is allowing an agreeable loan term. For instance, you will see many institutions offering up to 7 years loan repayment period. But typically, a Bike Loan term ranges from 1 to 4 years. Longer tenures help cut down the EMIs even further, thus contributing to your affordability.
On average, the disbursal of the approved loan amount does not take more than 48 hours. This feature makes Two-wheeler Loan providers increasingly approachable. Also, most of the time, when you apply online, the entire process becomes paperless, which further reduces the hassle.
Reasonable Interest Rates
Owing to intense competition among vehicle loan providers, the borrowers get benefits in the form of highly affordable loans. You may get a very competitive interest rate if you have a healthy credit score of 750 or above and the required employment stability and income.
Zero Down Payment Offers
Many lenders assure 100% financing on the purchase of two-wheelers. You can take advantage of this offer if you are buying a too-expensive model or simply find this offer helpful.
What are the documents needed for a Two-wheeler Loan?
Only a few basic document details are asked for while you try to avail financing for a bike purchase. These include:
- ID proof (Aadhaar card/ PAN Card/ Driving Licence/Voter’s ID card/ Passport)
- Address proof (Any utility bills like electricity, internet, etc.)
- Employment proof (Past three months’ salary slips/ Form 16/ latest IT returns, previous six months’ bank statements, and business registration details – self-employed documents)
- Two recently clicked passport-sized photographs
Considering the benefits a Bike Loan offers, it certifies why financing is the choice when purchasing a two-wheeler and the reason behind the popularity of these vehicles. So, keep all the necessary pointers in mind and prepare financially to secure and manage the loan without hiccups. And most importantly, get the motorcycle of your choice and enjoy it to the fullest.