Procedure for a two-wheeler loan

Two-wheelers in India are not a luxury, but it is the lifeline that flows through all its roads. Professionals, teenagers, homemakers, and senior citizens use two-wheelers every day to travel through rush-hour traffic. Two-wheelers are so popular in India mainly because it is fuel-efficient, easy to traverse and take less space as well. Although two-wheelers in India are affordable, their price range is approximately INR 50,000 to INR 100,000, which people normally do not choose to pay in one go. In these cases, people usually prefer to take advantage of two-wheeler loans to buy two-wheelers so they can pay in instalments for it. It decreases the buyers ‘ pressure and encourages them to start using the bicycle as soon as the loan is availed and the transaction is complete.

Advantages of availing a Two-Wheeler Loan

• If you use a bike loan, it also includes insurance fees, accessories, and fees for registration.
• Try to check out payment options with your car dealer to get the most out of two-wheeler loans.
• In India, the eligibility criteria for two-wheeler loans are extremely mild, including the minimum level of income.
• Most banks provide flexible terms of repayment and easy tenure for bike loans

How to apply for two-wheeler loans?

You can either apply for two-wheeler loan online for EMIs or during payment, you can speak to your car dealer about the loan option. Generally, both options include filling out an online form that involves filling out basic identity and details of income.

If you apply online, you will be required to submit scanned copies of your documents (in some cases, you will be visited by bank agents to secure copies of the documents). The bike will be yours to drive after you submit the required documents and your loan has been approved.

The documents needed for a loan include the following:

For Photo ID you can submit any one of these –

• PAN Card,
• Passport,
• Voter ID Card,
• Driving License,
• Aadhar Card

For address proof, you can submit –

• Ration card,
• Passport,
• Aadhar Card,
• Driving License,
• Landline Bill,
• Sale Deed

Interest Paid on Two-Wheeler Loan

The down payment is a sum set by the seller of the vehicle. It is, however, a separate amount from the EMI cycle, and interest on the amount of down payment is not charged. For example, if an INR 60,000 loan is available for your two-wheeler and your down payment is 10,000, then the interest will only be calculated on the remaining amount. The higher you pay for your two-wheeler down payment, the lower the interest amount for you.

In India, the interest rate on two-wheelers is generally about 15-17 per cent. Many banks or NBFCs, however, classify customers into bands based on their credit rating and charge a loan interest rate accordingly. Alternatively, you can see which banks are providing the lowest interest rates.

Getting a bike loan is a simple and easy process in India, it can be done availed instantly online and your desired bike can be yours easily.