Two-wheelers are almost always in demand in India. Whether you are college-bound or a middle-aged professional or an elderly retiree, bikes and scooters here come in a variety of makes and models to satisfy your taste and needs. And it is also easy to get a loan for a two-wheeler, with so many financial institutions offering attractive and competitive terms to woo you. So, if you want to buy a two-wheeler with a loan, all you have to do is follow the steps outlined below.
- Decide on your vehicle: The first and most important step when applying for a two-wheeler loan is to choose the bike you want. There are countless options available in the market today. You can get something for Rs 60,000 or even a few lacs, based on your budget and preference. Just keep your eligibility and financial condition in mind. For instance, you may want a bike that comes with a hefty price tag of Rs 5 lakh, but you may be qualified for a loan of only Rs 70,000. Apart from that, if you have a low income, your lender might not provide you with a large loan for a sports bike that costs a few lacs. Hence, before applying for a loan for a two-wheeler, choose your bike first.
- Check your loan eligibility:The lender determines the loan eligibility through factors such as your age, income, employment status and a few more. The best part about a two-wheeler loan is that a person with a monthly salary of as little as Rs 20,000 can also obtain this loan. This number, however, may differ from one lender to the next. Though, this does not mean that there is a possibility of obtaining a superbike loan for someone earning Rs 20,000 per month. Superbikes are expensive, costing lacs of rupees. If you want to take out a two-wheeler loan, you should head to the lender’s website and go through all the eligibility requirements. In case of doubt, you can also visit the financial institution’s nearest branch, where their customer care executives will help you with your queries.
- Calculate the EMI: It is a good idea to determine the two-wheeler loan EMI before finalising your loan. This process can be initiated by using the two-wheeler loan EMI calculator available on the lender’s website. An EMI calculator is an online tool that calculates the EMI when you enter the principal amount, loan term, and interest rate. It assists in determining how much you are obliged to pay and for how long. You can easily manage your budget and cut down on any unnecessary expenses if you know your EMIs ahead of time. After all, borrowers need to pay their EMIs on time to build a good credit history.
- Apply for a two-wheeler loan: The next step is to apply for a two-wheeler loan after you have chosen your bike, reviewed the eligibility conditions, and calculated your loan EMI. Nowadays, financial institutions give their customers the choice of applying online or offline. Applying for a loan online is quick and convenient. You need to go to the website of your preferred financial institution. Then navigate to the two-wheeler loan section and fill in the required information, such as your name, monthly income, loan amount, and any other pertinent detail requested by your lender. Click the submission button once you are done with the online application form.
You can visit the nearest branch of the financial institution in question if you are not too tech-savvy. The executives will ask you to complete an offline loan application form while you are there. After filling out the form, you must submit it to the designated person.
- Submit documents: Once you have completed the application for a two-wheeler loan, the next step is to submit all necessary paperwork. As proof of KYC, the lender will ask you to produce your identification and address proof. They will also ask you to present proof of income. The following is a list of documents that can be used to prove your income.
For Salaried Employees-
- Salary slips from the last 6 months for government employees. If the government employee doesn’t have a salary slip, then the salary certificate reflecting deduction needs to be provided.
- For proprietary, partnership firms and private limited companies: Salary certificate reflecting deductions will be accepted, only if it states the name and designation of the authorised signatory.
For Self Employed Individuals-
- Income Tax Return (ITR) latest copy.
Note that the above-mentioned documents may vary from one lender to another.
Once the lender verifies your documents and ensures that you are meeting all the required criteria, they will disburse the loan amount to the account of your two-wheeler dealer.
The application process for a loan for a two-wheeler is simple and straightforward. The documentation required is minimal and the processing is fast. All you need to do is make sure that you are eligible, have all the paperwork ready, and can pay off the loan on time.