A two wheeler is generally the first vehicle of almost every individual in India. It not only serves as a medium of commute but also gives you a sense of independence. However, this sense of freedom comes with a sense of responsibility too. Mere selection of your dream bike is not enough, you must also understand various financing options well to choose the one which meets your requirements and financial convenience in the best possible manner.
One of the most efficient ways of financing the purchase of your dream bike is a two wheeler loan. Broadly speaking, there are two types of bike loans - with down payment and without down payment. Down payment is the amount that you need to pay upfront at the time of buying a two wheeler, and the rest of the amount can be arranged with the help of a bike loan.
What Is a Bike Loan?
Bike loan is the amount that you borrow from a financier or lender to purchase your bike. It involves signing an official agreement wherein the lender promises to provide you with the required two wheeler loan amount in return for your promise to repay the borrowed amount with an agreed amount of interest in the form of Equated Monthly Installments (EMIs).
Why Are Bike Loans so Popular in India?
A bike loan is an extremely popular financing option for two wheelers in India owing to the following reasons:
Eligibility for Two Wheeler Loans
You can make use of the following two wheeler loan eligibility checklist in order to get a loan instantly and conveniently:
- Minimum Age for Bike Loan - You must be at least 21 years old at the time of applying for a bike loan.
- Maximum Age For Bike Loan Repayment - Individuals must not be older than 60 years at the time of repayment of the two wheeler loan. It is important to note that lenders give higher preference to younger bike loan applicants. Thus, you must make your two wheeler loan application as soon as possible.
- Monthly Income - Individuals earning between Rs. 10,000 and Rs. 15,000 can apply for bike loans in India. This is true for both salaried and self-employed individuals.
How to Get Instant Approvals for Bike Loan
Following are few tips that you can follow to get instant two wheeler loan approvals:
- Fill in Your Bike Loan Application Form Carefully - The first and foremost thing you must do to get instant approval for your bike loan is to read and fill in your loan application form carefully and correctly. In case you have any questions, reach outto the customer support team of the financier and clear all your queries before filing in the form.
- Meet the Two Wheeler Loan Eligibility Criteria - The eligibility criteria for a two wheeler loan may vary from financier to financier. Make sure that you meet the eligibility requirements laid down by your loan provider.
- Maintain a Good Credit Score - Credit score represents your credit-worthiness and, thus, the level of risk borne by the financier if they offer you the loan. Thus, it is essential to maintain a credit score of 750 or above. If your credit score is not high enough, you should try and apply for the loan with a co-applicant or a guarantor to ascertain your credit-worthiness to the lender.
- Apply for the Right Loan Amount - You should apply for a loan amount according to your monthly earnings. As per a rule of thumb, your EMIs should not be more than 40%-50% of your monthly salary.
- Submit All Required Documents on Time - You must submit all the required documents for the loan application process in a complete and timely manner. You generally need ID proof, address proof, income proof, and other KYC documents for completing your two wheeler loan application process.
- Apply with Existing Financier - One of the easiest ways of getting instant approvals on your bike loan is to apply for it with an existing lender. This is because your existing lender has proof of your credit-worthiness and other details, which helps in expediting the documentation and verification processes.
- Online Bike Loan Application - Today, almost all processes have been digitized and the same is true for bike loans. You can apply for a bike loan offline as well as online. It is generally observed that online bike loan applications get processed faster than those made offline due to ease of documentation and application completion.
- No urgency of arranging funds - A bike loan helps you fulfil your dream of owning a two wheeler even when you lack adequate amounts for purchasing a bike or scooty.
- No need to break emergency funds - Sometimes, individuals liquidate their emergency funds to finance their two wheeler, which later puts them in financial distress. However, financing the purchase of your two wheeler with the help of a bike loan helps you avoid such situations.
- Credit score - A credit score is a numerical expression that helps money lenders assess your ability to repay a loan. It is calculated on the basis of your credit history, which involves the amounts of loan taken by you and their repayment schedules. A bike loan helps you build your credit score and avail other loans in future more conveniently.
- Zero down payment option - Two wheeler loans come with an option of zero down payment, i.e., 100% financing of the bike is done by the loan provider and, thus, you need not pay anything at the time of taking a bike loan.