Two-wheelers have a substantial role to play in our lives. From going to your workplace to running mundane day to day errands, a two-wheeler facilitates everything. It is difficult to think of living even a single day without our bikes. Since two-wheelers have such a crucial role to play in our lives, it is plausible to think of investing a bit more to get your dream bike. But does that mean waiting for years to save up for your dream bike? Let us look at how bike finances can help you in this aspect.
Why get a two-wheeler loan?
Bike finance is the best way to get your dream bike right away without the need to wait for your savings to add up to the cost. Also, the equated monthly instalment options offered by the lenders can take a substantial financial load off your shoulders. A recently published report from the Reserve Bank of India highlighted a 6.5 per cent growth in the personal vehicle loan market in just one year from 2018-19. The growth rate speaks for the efficiency and credibility of bike finances. Now let us look at some efficient ways to get bike finance quickly.
There are a few criteria that need to meet to apply for a two-wheeler loan.
- Any individual, 21 years old or above and below 65 years, can apply for a two-wheeler loan.
- Net monthly income of the applicant should be Rs.18,000.
- The applicant may be salaried or self-employed.
- A maximum of Rs.10 Lakhs can be sanctioned, but it might vary depending on the cost of the two-wheeler, CIBIL score and the applicant’s ability to pay the EMI.
- In case the applicant is salaried, he or she should have a minimum of a year of work experience.
- In case the applicant is self-employed, the business tenure of the individual should be five years. Also, the individual is required to submit the proof of ITR of at least two years to avail the loan.
- A CIBIL score of 600 and above is usually preferred while applying for the loan.
Necessary documents for the procedure
Basic proof of identities
->Proof of identity
Proof of identity can be applicantsAadhar card, passport, voter ID, driving license or PAN card.
->Proof of address
Electricity bill, water bill, telephone bill or any other utility bill can act as a proof of address for the applicant. Just make sure that the bills you present should not be older than three months.
->Proof of asset
Proof of asset could be the applicant’s house receipt, land receipt or house tax receipt.
Recent passport size photograph of the applicant is to be submitted at the time of verification.
Cost quotation of the two-wheeler
The applicant needs to submit a quotation for the cost of the selected two-wheeler from the dealer.
In case the applicant is salaried, he or she has to fill and submit form 16 along with the salary slips of the last three months and bank account statement showing salary credit.
In case the applicant is self-employed, he or she needs to show proof of ITR of the last two years along with bank account statements of the previous three months.
Picking the best bike finance.
-> Compare interest rates
There are multiple two-wheeler loan lenders in the market offering loans at different interest rates. Hence, make sure to go through all the two-wheeler schemes, to pick the one, offering the lowest interest rates.
-> Repayment options
Make sure to calculate the interest and EMI to handle your finances better. Failing to repay the loan in time may have dire consequences. Use an online two-wheeler loan EMI calculator to find out and compare the exact figure of equated monthly instalment that you have to pay in a particular bike finance scheme, to measure the feasibility of repayment accurately.
-> Read the terms and conditions
Do not rush into signing the papers before going through the terms and conditions of the two-wheeler loan scheme. Look for crucial details about the grace period, early pay-off charges etc. before moving forward with the particular bike finance scheme.