How to apply for Two-Wheeler loans in India- Step by Step procedure
A Two-Wheeler loan is the best option to own your dream bike without redeeming your savings. You can get up to 100% of financing for your bike according to on-road price as a loan without pledging anything as collateral. With affordable interest rates and longer loan tenure, you can plan your repayments based on your needs.
Check your loan eligibility
The first and foremost step of applying for two-wheeler loans is to check your loan eligibility. To apply for a two-wheeler loan, you are required to meet the following eligibility criteria. Online at each of the lender’s platforms, you will find a free-of-cost two-wheeler loan eligibility calculator.
Age- The minimum age to apply for a two-wheeler loan is 21 years and the maximum is 60 years. The younger you are, the more likely you will get the loan approval.
Monthly Income: Different institutions accept different minimum levels of income. Usually, the minimum income lies between Rs. 7000-15,000 per month.
Credit Score: Usually, a credit score of 750 or above is considered good as it shows responsible credit behavior.
Calculate the EMIs using a two-wheeler loan EMI calculator to compare the interest rates and EMIs of different banks before making a final decision on the purchase of the two-wheeler of your choice.
Fill in the loan application
Having done your homework, you can simply go visit the webpage online, start filling out the application for a two-wheeler. The process of applying for two-wheeler loans is 100% paperless. Sitting from the comfort of your home, you can meet all your financial requirements with ease.
Need to fill in details such as name, e-mail address, residence, employment type, name of the current company, monthly-in-hand salary, and contact details. After filling in the details, you will get an OTP on your registered mobile number to verify the contact details.
Documents submission
Post filling the application, you are required to upload the following documents:
- Income proof in the form of salary slips for the last three months the latest bank statement for three months or income tax returns filed for the past three years.
- Identity proof such as PAN card, voter’s ID, driving license, passport, or Aadhaar Card. You can submit the same as your age proof too.
- Address proof, you can submit the electricity/ gas bills, voter’s ID, Aadhaar Card, Ration Card, or bill of Life Insurance.
Verification of documents submitted
After you upload the required documents at the time of filling two-wheeler loan application, the lender will verify the accuracy of the documents as per the information shared. Also, check the credit score to understand its creditworthiness. This verification process takes a few seconds.
Calculates loan amount eligibility
After successful completion of all the above steps, the lenders calculate the amount for which the applicant is eligible, based on the type of two-wheeler. Most of the lenders offer 100% financing on two-wheeler according to on-road price.
Hypothecation of the vehicle
Usually, the two-wheelers remain hypothecated in the name of the lender until you completely repay the loan. Hence, after purchasing the bike, you need to mention this in the RC application. Upon the arrival of the RC document, you need to deposit a copy to your lender to complete the documentation.
In a nutshell, you can easily get a two-wheeler loan by following the above steps and can enjoy the benefits of a hassle-free loan process, attractive interest rates, and instant loan approval. So, click here to take your first step towards your own.
You can also visit the dealership showroom where the friendly staff will assist you in completing loan formalities.
