Two-wheeler loan for students: Here is all you need to know!

Two-wheelers are the most popular mode of transport in India. It has become more of an essential commodity than a luxury item. In Asia, India is the largest manufacturers of motorcycles and considered the best market for small to medium two-wheelers. Even global brands have started operations in India and manufacturing bikes which suit the Indian road. With new models getting launched frequently, there is a massive demand for two-wheeler finance.

The eligibility criteria differ between lenders so that every segment of the country can get their dream vehicle. The most popular demographic here are students. However, students do not have enough funds to purchase their bike. Precisely why lenders provide a unique product called two-wheeler loan for students.

But there are special conditions under which students can avail these loans as they are not earning members yet. The following concepts will clear doubts regarding bike loan for students’ eligibility, documents, etc.

Features:

• The repayment period is minimal, which is usually around three years.
• Considering students do not earn, the income requirement for co-applicants is not high.
• You can also provide a guarantor for availing of such loans.
• When it comes to documents for bike loan, the processing and verification take in total three days.
• The student bike loans are unsecured.
• Students can purchase any motorcycle with the help of this credit.

Eligibility:

Before sanctioning the bike loan for students, various factors are considered. They are listed as below –

• You must be a student
• The minimum age should be 18 years
• You must apply with a co-applicant or a guarantor for this loan
• The co-borrower must receive a steady source of income and hold valid income proofs
• The co-applicant must carry a decent credit rating. Lenders prefer to transact with those whose score matches 700 or above
• Applicants must have convincing address proofs including the permanent one

Documentation:

The typical documents for bike loan are as follows –

• Identity proofs such as voter’s ID, passport, Aadhaar, PAN card, driving license
• Residence proofs include utility bills, bank passbook, ration card, Aadhaar, insurance papers

The catch for student two-wheeler loans are –

• Co-applicant proofs are split into salaried and independent professionals
• Salaried people must furnish last six months payslips and past six months bank statements
• Self-employed co-borrower should produce previous two years income tax returns, bank statement of one year, and business proof which includes maintenance bills, utility bills, office registration certificate, profit & loss statement, and so forth

Co-borrowers:

The best part about getting a guarantor or co-applicant for your two-wheeler finance is you get what you look for. This goes in favour of students. You could get another individual to guarantee on your behalf like a close friend. Remember, the co-applicant falls in trouble if there are defaults.

How to apply for such loans?

There are many ways to apply for student bike loans. This includes –

• Directly applying at the lender’s branch
• Doing it through the lender’s portal
• Applying via the showroom or dealer

Remember, since the two-wheeler loan does not emphasise on the credit score, the documents for bike loan plays a crucial role in the approval process.