Things to Consider When Taking a Two Wheeler Loan

Getting a bike unlocks a world of freedom and mobility like never before. With Indian cities getting crowded and transport systems unreliable, owning your own two-wheeler will ensure that you are no longer late for that crucial meeting or new job interview.

Most banks try to make your goal of getting your dream bike a reality. For those of you who can’t afford to pay the full amount in a single sitting, low interest Equated Monthly Installments (EMI) over a prolonged loan period can be used to finance your dream.

These are the following things you need to consider before applying for a Bike Loan –

1. Eligibility

In order to avail of a speedy Two Wheeler Loan, you should be able to produce the required documents when asked for as well as fulfill our eligibility criteria.

• One should have a fixed salary or be self-employed
• One should have a stable job and should have filed their income tax returns for the last two years
• The applicant should be at least 18 years of age at the time of applying for the loan, and no older than 65 at the maturity of the loan
• One should have a permanent place of residence for the past year. In case the applicant has shifted from another location in the past one year, kindly provide required KYC documents during the approval stage.
• One must have a telephone or post-paid mobile connection.

2. Credit Score:

In order to see if you will be able to repay your loan credit bureau’s keep track of your prior track record. A CIBIL score is a three-digit number from 300 to 900 which determines an applicant’s loan worthiness. A higher CIBIL score means that you will be more eligible for a loan. A higher CIBIL also could mean that you will be able to take a more attractive loan at the same price.

3. Interest Rates:

Most banks want their customers to have a smooth experience when applying for a loan. Make sure the loan you get is a low-interest loan that can be comfortably paid over monthly installments. In addition to an interest rate, banks also have a processing charge. Keep a lookout for this.

The interest rates offered also depends on the down payment you will be making. However, some banks can offer up to 95% financing of your loan. i.e. If you have plans to buy a bike worth 1 lakh you’ll need to pay only Rs 5,000 upfront.

4. Have a repayment plan:

Check your financial status and see how much you can afford. The best way to do that is to have a look at your monthly income. How much of your monthly income can you use to pay off the loan?

Always think long-term. It is always a good idea to keep some money aside for emergencies. Do not ever drag a loan for too long because you could end up losing money. We recommend that you make a high amount of down payment so that your repayment amount and tenure are less.

5. Important Documents:

Here is a list of documents that are required for a Bike Loan. Please make sure you have the original copy as well as a photocopy of all of these documents on hand before beginning the loan process.

Identity Proof:

• Aadhaar Card
• PAN card
• Passport
• Driving License
• Electoral Voter Identity Card

Address Proof:

• Aadhaar Card
• PAN card
• Passport
• Driving License
• Latest Electricity Bill
• Latest Phone Bill
• Latest Bank Passbook reflecting the current address
• Property Documents
• Water bill

Additional Documents for Salaried Persons

Salaried persons:
• Employment or offer letter
• Last salary slips <45 Days
• Last six months bank statements and latest form 16

Self-Employed:
• Last three years income tax returns
• Last six months bank statements
• Sales tax returns
• TDS Certificate
• Company details

You can easily calculate your EMI with the help of Two Wheeler Loan EMI Calculator