A bike loan is a very sustainable way to purchase a bike. It is a very sustainable and affordable financing option and anyone who wants to purchase a new bike can definitely consider the option of a two wheeler loan. Two wheeler loans are widely available all across India and numerous lenders offer such loans. Generally, most of the bike loan eligibility criteria are minimum and the requirements are pretty basic.
Nonetheless, when applying for a two wheeler loan or even if you are planning to get such a loan, you need to know about the eligibility criteria, the documents required and the other common terms and details of two wheeler loans. While it is definitely easy to get such a loan, making the right choice in choosing the right loan and lender would depend upon your knowledge about such loans.
In this article, we have talked about all the essential eligibility criteria for a two wheeler loan along with the most common documents required for two wheeler loans. While the terms, eligibility and documentation may vary from lender to lender, there are some common and basic requirements that are common and the majority of lenders will look into these factors and ask for these documents.
You can easily find the eligibility criteria for bike loans on the lender’s website. You can also ask the representatives of the bank or finance company that is offering the loan. Once you know these criteria, you will have a fair idea about whether you will be eligible for the loan or not. Once you know you are eligible, you can easily apply for the loan and get the financing for the purchase of your new bike.
Here are the basic and common eligibility criteria for most bike loans offered by different lenders across the country.
- The applicant must be at least 18 years of age when applying for the loan and must be a maximum of 65 years old before the loan matures.
- The applicant must be a resident citizen of India and must also be residing at the same address for a minimum of 1 year of time.
- For salaried professionals, they must be an employee at a private limited company, an MNC, a public sector enterprise for a minimum employment period of at least 1 year. In case of self-employed professionals, IT Returns for 1 consecutive year needs to be provided.
- The applicant must have a good CIBIL score.
- A permanent telephone number can be required by some lenders.
- The applicant must have all relevant and necessary KYC documents.
Once you know that you are meeting all the required bike loan eligibility criteria, you need to know the EMI range using an online two wheeler loan EMI calculator. After that, you will also have to keep all the necessary documents ready to be submitted with the loan application.
The most common and essential documents required for a two wheeler loan include the following:
- A duly filled and signed loan application form.
- KYC documents
- Proof of identity (PAN card, voter’s ID, passport, driving license, etc.)
- Proof of address (Utility bills, passport, rental agreement, etc.)
- And proof of age
- Passport size photographs
Salaried professionals would also need to submit the following documents required for two wheeler loan.
- The latest salary slips for at least 3 months for Government employees. A salary certificate is also acceptable with deductions.
- For Partnerships / Proprietary Firms / Pvt. Ltd. Companies: Salary Certificates will be accepted if it clearly outlines the deductions, name and designation of the authorized signatory.
- Latest Form 16
Self-employed individuals will need to submit the following additionally:
- Copies of latest income tax returns
What To Keep In Mind When Availing A Bike Loan?
There are a few things that you have to keep in mind when you are buying a bike with a two wheeler loan. While two wheeler loans are a great option when it comes to buying a bike, you must keep in mind of such factors to make sure that you are making the right decision and that the loan actually becomes fruitful for you.
Since we started this article with the question, “Is a bike loan a good idea?” Let us take a look at the things you need to keep in mind to actually make it a good idea for you.
Check The Interest Rates Before Choosing A Lender
The market is filled with lenders who offer two wheeler loans. Different banks and finance companies have different interest rates for such loans. Before you choose a lender, you need to check the rates offered by some of the top companies and banks and then make a decision accordingly. Quite obviously, after thorough comparison, choose a lender that charges the lowest interest rates in the principal loan amount.
Applying for such loans is very easy and you can easily apply for and get a bike loan when looking to purchase a bike. The application process is available both online as well as offline with minimum bike loan eligibility criteria and documents required. Consult with your lender to know more about the terms and conditions and all other details about the loan.