Can I get a Loan on Two-Wheeler?

Planning on buying that newly launched bike you have wanted for a while? You needn’t drain your savings in the process. All you need to do is get a two-wheeler loan.

Nowadays, many banks offer attractive two-wheeler loans. So, how should you select the best loan offer? How can you ensure you are eligible for a two wheeler loan in the first place? Find out all the details here.

What to Consider for a Two-wheeler Loan?

• Loan Coverage

The first point to factor would be how much of your bike’s value your loan would cover. A two-wheeler loan usually requires a down payment from your side; this could be between 5%- 15% of the vehicle’s value. The loan would cover the rest.

If you wish to reduce the down payment amount, you need to choose a lender offering a higher loan coverage.

• Interest Rate

Your interest rate is one of the main factors influencing the monthly EMI amount you pay. One way to make sure this sum is low is to apply with a lender offering a low interest rate.

Check with different providers to get the best possible interest rates for your loan. Additionally, ensure you have a high credit score before applying. This can help you negotiate better interest rates.

• Loan tenure

Repayment tenures for two-wheeler loans typically range from 12 to 36 months, but they could go up to 60 months for high-end vehicles. If your loan tenure is longer, you could pay off your loan in smaller instalments. But that also means you will be paying a higher total interest by the end of the term.

So choose a tenure in accordance with your comfort and convenience.

Who Can Apply for a Two-wheeler Loan?

Every bank has its own eligibility criteria for approving two-wheeler loans. However, the following are some basic requirements that most banks ask for:

• The applicant should be an Indian citizen.
• They should be over 21 years of age but under retirement age.
• They should have a stable income, earn a stipulated minimum salary, or own a stable business for at least 3 years.

What do You Need to Apply for a Two-wheeler Loan?

You may be required to furnish the following documents to apply for a two-wheeler loan:

1. Identity Proof

This could be your Aadhar card, driving license, PAN card, voter ID, or passport.

2. Proof of Residence

Most identity proofs also serve as address proofs, but some banks may ask you to submit a different proof for ID and a different one for address.

3. Income Proof

The documents showing proof of income could vary depending on your employment status.

If you are employed and earning a monthly salary, you can submit your latest Form 16, IT returns, or the payslips of your last three months. Some banks will also accept a bank statement as proof.

In case of self-employment, the required documents will differ based on many factors. For example, if you are in agriculture, you may be asked to submit a copy of your Pattadar passbook or proof of agricultural land, proof of owned residence, and repayment track. In case of other businesses, you may be asked to show proof of business continuity for 3 years and owned residence proof along with bank statements, IT returns, and repayment track.

You can check with your bank for any other documents you might need to produce when you apply for a two-wheeler loan.

Conclusion

A two-wheeler loan can help you purchase your dream two-wheeler without burning a hole in your pocket. All you need to do is choose a lender with a good loan offer.

These days, it is easy to apply for a two-wheeler loan online. Most top banks have a simple, hassle-free online application process. So, get your dream bike or scooter with a two-wheeler loan today!

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