Owning a bike is a dream for many, especially today’s youth, who want to be independent and experience a sense of freedom. Buying a two-wheeler gives people the freedom and thrill they want riding through the busy streets of India. A bike loan is accessible to everyone from many lenders in the market. You can complete a bike loan application in a few minutes by submitting a few necessary documents. A few details should be considered while applying for a bike loan to get the best loan offer.
Factors to Keep in Mind While Choosing a Bike Loan in India
There is a step-by-step process to get the best bike loan in India with competitive rates. Follow the same to get attractive loan offers with the best interest rate. Here is a guide to choosing a two-wheeler loan.
Desired loan amount
The principal loan amount also varies based on the bike you want to buy. Choosing a loan amount is the first and most crucial step in applying for a loan. Opt for the principal loan amount after considering the cost of the two-wheeler you want to buy and the repayment capacity.
The best interest rate offered
There are a lot of two-wheeler loan vendors in India. With more options available, deciding on the best loan also becomes difficult. Getting the best bike loan interest rate depends on a good credit score, employment status and income status. Someone with a good credit score will get the best bike loan interest rate in the market. Compare loans offered by different vendors to get the best rate.
Check your loan eligibility
There is a criterion for two-wheeler loan eligibility in India. Every customer applying for the loan should satisfy the following basic eligibility criteria:
- The minimum age of a two-wheeler loan application is between 18 to 65 years.
- A loan application is given to only a salaried or self-employed person.
- Annual income requirements may vary for different vendors.
Look for special offers
Financial institutions come out with many offers periodically. These offers allow customers to save significant money while applying for a loan. The offers available in the market may include zero down payment, discounted processing fees, less bike loan interest rate and more.
To get any loan, you must possess and present certain documents. These documents serve as identification of the customer and proof of repayment. The document required include:
- Identity proof: Aadhar card or Pan card.
- Income proof: salary slip for salaried persons or ITR forms for self-employed.
- Address proof: a valid address proof like an Aadhar card, electricity bill etc.
- Photo proof: a passport-size photo.
Keep the documents ready while you apply for a loan to make the process hassle-free.
Have a repayment plan
Any loan vendor needs timely repayment of the loan. Repaying a loan on time also increases the credit score of the customer. Applying for a loan amount over and above the customer’s capacity to repay will make repayment of the loan difficult. Flexible repayment tenure can help you not miss any EMI repayment due date.
Tips for Successful Two-Wheeler Loan Application
While choosing and applying for a loan, there are certain do’s and don’ts’. The points mentioned below will help to get the right loan and avoid any loss or overpayment.
1. Fill out your loan application carefully
The loan application should be complete to avail of the loan seamlessly. Make sure to fill in all the details carefully. Any application with wrong or incomplete information will be rejected. It will affect the bike loan interest rate eventually.
2. Submit all the necessary documents
Documentation for a loan should be made meticulously. To complete the application, submit all the relevant documents while applying for the loan. Loan applications without proper documents will be considered incomplete.
3. Research well
Compare multiple options in the market so that any good loan offer is availed. Good research helps understand the terms of the loan well. You can also find the best bike loan offers through good research.
4. Select a good loan tenure
The tenure of the loan you select decides the EMI amount you pay. Choose the loan tenure wisely based on how much repayment one can afford to make.
You can easily apply for bike loans through different online portals. Make sure to read the terms and conditions of the loan policy before you sign it. The loan policy will reveal any hidden charges applied or any fraudulent vendors. Bike loans are available at competitive rates that do not burden the customers. Once the best bike loan is chosen, most of the work is done, and you can easily own your dream bike.