Millennials prefer financial independence, which is most evident in their choice of education system and means of commuting. There is no denying the fact that younger folks prefer two wheelers over four-wheelers, considering the utmost ease offered by them. Be it for a ride to their college or a company where they are interning, scooties and bikes emerge as their first choice.
But, how can students finance their bikes? Well, via a two wheeler loan. In this article, we help you find the best two wheeler loan in India.
Eligibility Criteria for Bike Loan for Students
As a student, you must meet the following eligibility criteria to get a two wheeler loan in India:
1. Minimum Bike Loan Age - Most of the banks and NBFCs have set the minimum age for applying for a bike loan at 21 years. This is the age at which most students are either in their final year of a bachelor's program or initial years of postgraduate study. In either case, you can apply for a bike loan and get your dream bike.
2. Requirement of a Guarantor - If you are 21 years of age and are still studying, you need to apply for a bike loan with a guarantor who needs to submit his/her income proof on your behalf. This is required due to the absence of a steady income in the case of students.
3. Student ID Card - Student bike loans are designed especially for students and can only be availed by them. These loans vary in their features to make it relatively easier for students who need to balance their financing obligations along with study. Thus, these loans are only available to students. As proof, lenders often require you to submit a copy of your student ID card.
4. CIBIL Score - It is a financial score that reflects the ability of an individual to repay debt. The guarantor of the student needs to submit their CIBIL score in order to establish their credit-worthiness to the financier.
5. Permanent Residence Requirement - The student applying for the bike loan must have a permanent residential address in order to apply for the loan.
Key Features of Student Two Wheeler Loans
As mentioned above, the two wheeler loans designed for students vary in their features and benefits from the standard bike loans. Following are the key features of a student bike loan
1. Minimum Repayment Tenure - In the case of standard two wheeler loans, there is no minimum repayment tenure. However, in the case of bike loans meant for students, there is a minimum repayment loan tenure of 3 years. This means that the student has at least 3 years to pay back the borrowed money.
2. Unsecured Loans - Student two wheeler loanss are unsecured loans, which means that the applicants need not mortgage any property or provide a collateral to get the loan. This is a highly beneficial feature of student bike loans.
3. Quick Processing Time - Student two wheelers loans feature a short processing time, which can be as short as 3 days. This helps students in converting their plans of financing their dream bike in accordance with their fast-paced lives.
Best Two Wheeler Loan Providers in India
Following are the top banks and NBFCs offering two wheeler loans in India in 2021:
|Bank / NBFC
|Interest Rate Per Annum
|Bajaj Auto Finance
|Bank of India
|Jammu and Kashmir Bank
|Punjab National Bank (PNB)
|State Bank of India (SBI)
|Union Bank of India
|United Bank of India
How to Apply for Two Wheeler Loan As a Student
You can apply for a two wheeler loan as a student with Shriram Finance by following these steps:
1. Visit the official website of Shriram Finance.
2. Go to the 'Two Wheeler Loan' section and click on 'Apply Now'.
3. Fill in your personal details such as your Name, Gender, Date of Birth, and Marital Status.
4. Provide your contact details, including your Email ID and Mobile Number.
5. Read and agree to the terms and conditions.
6. Click on 'Continue'.
7. One of the Shriram Finance Two Wheeler Loan representatives will contact you and help you with the completion of the bike loan process.
Documents Required to Apply for a Student Bike Loan
As a student, you require the following documents to apply for a two wheeler loan in India:
1. Student ID Card
2. Age Proof such as Aadhaar Card, Voter ID, etc.
3. ID Proof such as Aadhaar Card, PAN Card, Voter ID Card, etc.
4. Permanent Address Proof such as a utility bill, Voter ID Card, Bank Passbook, etc.
5. Income Proof of the guarantor such as his/her Income Tax Returns (ITRs), bank statement, salary slips, etc. Proofs vary depending on whether the guarantor is a self-employed or salaried individual.
Two wheeler loans are becoming popular in India owing to their benefits and convenience. If you are a student and are not sure where to begin with your bike loan application or are stuck at a particular step, feel free to reach out to the experts at Shriram Finance. We will assist you in choosing the right student loan and help you realize your dream.