We grew up seeing our older brothers riding bikes. Most of us started developing an urge to possess our own two-wheeler. The dream started to shape up as more banks, and NBFCs started giving loans for bikes.
In general, the minimum age to get a two-wheeler loan in India is 21 years. People usually complete graduation at 21 and start earning. Banks look for a stable income source for issuing a two-wheeler loan, so the minimum age is set at 21 years.
But, some banks and Non-Banking Financial Institutions issue bike loans to individuals below 21 years of age. The minimum age for issuing a Bike Loan for College Students is 18 years. Bike loan for student has become extremely popular in India. More and more students are applying for it.
The increase in the demand for bike loan for students has made it beneficial for all of us to understand its features and eligibility.
Any bike is an emotion for Indians, and a bike loan for students is the path to achieve it. There are so many bike manufacturing companies in India, and they are always coming up with the latest bike models. So, a bike loan is important for helping people become proud owners of their brand new two-wheeler.
Several banks and Non-Banking Financial Institutions have instant approval schemes for a bike loan and finance 100% of the bike's on-road price. The rates may be fixed or variable depending on the choice of the borrower.
Take a Bike Loan and start living your dream - Advantages of Bike Loan.
Bike Loans have several advantages. To name a few:
- Most banks and financial institutions provide 100% financing, so there is no need to arrange an initial down payment. Arrangement of the initial down payment may be complicated, and it may delay the purchase of a bike.
- Most of the insurance and registration costs of the bike are included in the loan amount. Instead of paying for the registration and insurance initially, the borrower can slowly repay them through monthly installments.
- Banks have tie-ups with most of the bike showrooms. So it becomes easy for a customer to apply for a bike loan.
What is a Student Bike Loan?
The minimum age necessary to apply for a bike loan is 21 years. If a bike loan is issued to an individual below 21 years of age, it is a Bike Loan for Students. Students usually complete their High School by 18 and start preparing for graduation.
So the loan for students on bikes is issued to individuals between 18 years to 21 years of age. bike loan for students is popular in India, and there are several banks and Non-Banking Financial Institutions that help students get a bike loan.
Features of Student Bike loan
The features of student bank loan are as follows:
- The minimum repayment period for bike loans for college students is three years. So if any student is taking a bike loan, they will have to choose a repayment period of three years.
- A bike loan for college students doesn't require a co-applicant with a very high income. The student bike loan will be approved even with a moderate-income of the co-applicant.
- There is a requirement of a co-applicant or guarantor to avail the student bike loan. The income source of students is generally not steady or trustworthy, as most students engage in part-time jobs. So, Banks and other Financial Institutions require a guarantor or a co-applicant to offer a bike loan for college students.
- The minimum processing time for most banks and Non-Banking financial institutions to process a bike loan for students is up to 3 days. So it will take a maximum of 3 days to apply for a bike loan for students.
- Bike loan for students is unsecured, which means that the applicant doesn't need to arrange for any security or collateral.
- Students can buy any bike from the loan issued. So, there are no restrictions imposed on the type of vehicle purchased from a bike loan for students
Eligibility for availing a Student Bike Loan
Banks and other financial institutions have fixed certain eligibility factors to avail the student bike loan.
- The minimum age of the borrower can't be less than 18 years. So if any student is planning to apply for a student bike loan, then he/she should be at least 18 years of age.
- There has to be a co-borrower or guarantor for an applicant to get a student bike loan. Students usually don't have a permanent and stable income source, so having a co-borrower or guarantee hedges the lender's default risk.
- As students don't have a steady income source, the co-borrower or guarantor should have a steady income source. The co-borrower or guarantor should be able to submit documents that show valid proof of income.
- The borrower who is applying for the loan should be a student. The entire student bike loan scheme is designed for students to avail themselves a bike of their choice.
- CIBIL score is crucial for being able to avail of a loan. The co-borrower or guarantor should have a good CIBIL score. In India, most banks prefer a CIBIL score that is 700 or more.
- The applicant for a college student bike loan should have a permanent address.
Documentation Required for availing Student Bike Loan
The documents required for availing a loan for a student on the bike are mentioned below days
- Identification proof is necessary. The valid documents can be a Voter ID card, Aadhaar card, Driver's License, etc. Without a proper identification document, the bike loan will be rejected.
- Address Proof documents are also necessary. The applicant must have a permanent address. The documents are Bank Passbook, Passport, etc.
- Co-Borrower or guarantor should have valid proof of income:
If the co-borrower or guarantor is salaried, they need to produce
1. The last six months' Payslip of the Guarantor is required. Payslips shows the income-generating capability of the guarantor. If the payslips portray erratic income, then the student bike loan application may be rejected.
2. The last six months' bank statement of the guarantor or co-borrower is also required. The bank statements will help the lender understand the expenses of the guarantor. If the guarantor's expenses are more than his income, then the student loan application may be rejected.
If the co-borrower or guarantor is self-employed
1. The guarantor will have to provide a minimum of 2 years income tax return. Filing of tax return is very important, and a minimum of a two-year return is necessary to avail of a student bike loan.
2. The last 1-year bank statement is necessary. The statement will help lenders analyze the income and expenses of the guarantor.
3. When a guarantor is self-employed, then he/she will have to provide proof of the business. Lenders try to validate the source of the income, whether the income is legitimate or not.
Student Bike Loan is popular in India. The bike is the most efficient way to commute. In the current pandemic situation, having a personal vehicle is necessary. Bikes are very economical as they provide great mileage and can skip traffic jams. There are several Banks and Financial Institutions that provide Student Bike Loans.
Shriram Finance is India's leading Non-Banking Financial Company. They provide two-wheeler loans with minimum processing time. The interest rates charged are the best in the market.
So look into their offer, or do further research and make an informed decision on availing the loan. You are just one step away from your dream ride!