Nowadays youth uses bike the most. Everyone dreams to have their own two-wheeler but students face some difficulty while buying this. Read this article to know how a student can avail a two-wheeler.
Two-wheeler is an accessible mode of daily commute found in almost every household. India is one of the largest manufacturers of two-wheelers in the world, where motorbike companies launch new and stylish models regularly to meet the aspirations of the school and college-going students. Further, many international manufacturers have set up their business in India to produce bikes that suit the Indian road conditions.
With the unprecedented growth in demand for bikes among students, various financial institutions have introduced two wheeler loan for them. This loan can quickly help them in fulfilling their dream of owning a bike of their choice. Since students are not the earning members of the society, this two-wheeler loan is offered under unique eligibility criteria and requires some basic and minimum documents. There is also the availability of downpayment for it.
Features of Student Two Wheeler Loans
Loans for students provided by various lenders have the following features-
It is an unsecured loan where the bank holds no collateral.
The minimum age of the student must be 18 years.
The minimum repayment period for this loan is up to 3 years.
As students do not have any source of earnings, they require a co-borrower/guarantor to acquire this loan.
The income requirement of the co-borrower/guarantor is not very high.
Students can buy any vehicle by availing this loan.
A down payment is an essential aspect of this loan. Higher the down payment, more the chances of getting your loan approved.
You can also use a two-wheeler loan calculator provided by the lender to calculate the EMIs you need to pay every month for your investment. The calculator tool is online available and helps you to know the exact EMI amount you have to pay per month or per year.
Two ways to avail a student two-wheeler loan
It is quite challenging for students to secure a two-wheeler loan due to the absence of any permanent source of income. However, there are some special occasions when they can easily avail this type of loan to purchase their dream bike.
1. Part-time job while studying
Nowadays, many students like to do a part-time job while studying, which increases their chances of getting a two-wheeler loan. It is because they have a regular source of income, and their payslips can be used as proof of salary, which can help lenders access their repayment capability.
Since student bike loan is an unsecured loan, lenders usually charge a high-interest rate on such loans to avoid the risk of default. Moreover, if you have taken any loan before, make sure you have a good repayment history and a high credit score. This way, you can easily avail this loan at nominal interest rates.
2. Co-applicant/ guarantor
The second way to avail a two-wheeler loan is to apply through a guarantor. A guarantor/co-applicant is a person who will need to pay for your loan if you don’t have the required funds to reimburse it.
The guarantor/co-applicant should have a stable job and steady income and must provide a valid income proof to the lender. Further, he/she should have a secure credit and CIBIL score, which can help in getting a two-wheeler loan with ease.
Nothing matches the excitement of owning a two-wheeler of your choice as it provides the freedom to travel on your terms. Now every student can buy their favorite bike with zero down payment facility. So, it is advisable to conduct extensive research and find the most suitable lender who can provide the loan at reasonable interest rates. Also, you should ensure that you have a solid plan to pay all your installments on time.