India's two-wheeler financing market was expected to grow at around 11% compound annual growth rate at the beginning of the financial year. Even after the pandemic-induced slowdown, two-wheeler demand has soared in India due to the pent-up demand. When it comes to buying bikes and scooters, money lending is done by various banks and financial institutions.
Two-wheeler sales in India - last 10 years
|Financial Year 2011
|Financial Year 2012
|Financial Year 2013
|Financial Year 2014
|Financial Year 2015
|Financial Year 2016
|Financial Year 2017
|Financial Year 2018
|Financial Year 2019
|Financial Year 2020
|17.42 (still counting)
With an increase in demand for two-wheelers, the two-wheeler budget is also increasing. This is apparent from the influx of high-end two-wheelers and their popularity.
You may wonder if finance is available for expensive two-wheelers as well. You may also be spoilt for choice among two-wheeler finance providers and not be sure which one lender to go for.
Here you get all the information you want on the two-wheeler loan process and what Shriram Finance brings to the table.
What you need to know about two-wheeler finance
When you set out to apply for a two-wheeler loan, you should be aware of the various facts and information around it. It includes documentation, eligibility criteria, various steps and precautions you can take to meet the eligibility criteria, and your affordability.
If you choose Shriram Finance as your trusted bike financier, you will find out what extra you are getting from the relationship and how the company stands out.
What is the eligibility criteria?
The essential eligibility criteria considered while processing a two-wheeler loan application are:
- Be at least 21 years of age.
- Not be more than 59 years of age at the time of maturity of the borrowing.
- Salaried, as well as self-employed persons, can apply for two-wheeler finance.
- Salaried applicants should have at least one year of work experience.
- The minimum monthly salary is Rs 12,000.
- Self-employed applicants must be in the same business for at least two years.
- Residing in the same address for the past year or more.
- Disclose all their existing liabilities.
- No cheque bounced in the past 12 months.
Getting the Documents Ready
If you meet these eligibility criteria, you have a better chance of loan approval. It also has a bearing on the amount of finance you would be eligible for and the interest cost.
While applying for the two-wheeler finance, the financier requests a few documents to process your loan application. These include the following:
- Aadhaar is mandatory.
- Identity proof, which can be your passport, driving license, voter ID, or PAN.
- Address proof (passport, driving license, gas bill, etc.).
- Other documents or requirements, including passport size photo, income proof, bank statement for the last six months, cancelled cheque, ACH form for electronic clearing mandate, and vehicle registration certificate on receipt of the new two-wheeler.
Buying an Expensive Two-wheeler – the EMI Scenario
Let us assume that you plan to go beyond a commuter bike and spend on the likes of a Royal Enfield Himalayan or a Jawa Perak. Such bikes can cost you between Rs 1.5 to 2.5 lakhs.
You may end up applying for two-wheeler finance of, let’s say, Rs 2 lakhs. If you apply for a three-year repayment period and are offered a 12.5% interest rate, then your monthly EMI would be close to Rs 6,700. Thus, by paying less than Rs 7,000 in a month, you can ride an aspirational two-wheeler from day one.
What Improves Your Chances of Maximum Loan Amount?
- Very few lenders approve your two-wheeler finance application if you have a poor credit score. Therefore, you should keep your credit score healthy. You should maintain a good credit score by avoiding repayment delays and maintaining a good credit repayment pattern in recent times.
- Apart from credit score, your income and employment is an important decision. If you want to apply two-wheeler finance for a Rs 10 lakh superbike, your income should reflect your repayment capacity.
- Age is another important consideration—an applicant nearing retirement may not have higher credit eligibility than a 30-year-old single person with a high paying job.
- A good past track record with the lender also helps to raise your credit profile and eligibility.
How Shriram Finance stands out
Shriram Finance is a reputed and much-relied name in the motor financing market. The post-pandemic rise in two-wheeler demand is reflected in the preference shown by two-wheeler buyers in Shriram Finance.
Shriram Finance has rolled out money lending for over lakh two-wheelers in October 2020, which it bettered in November with 1.67 lakh. With over Rs 1,000 crores of finance disbursed in this period, Shriram Finance commanded a share of 10.41% of the two-wheeler financing market in India.
Maximum Two-wheeler Loan Amount by Shriram Finance
When you approach Shriram Finance, they verify your loan eligibility and the desired bike’s cost. You can also confirm your eligibility with your nearest Shriram Finance branch.
Depending on your eligibility, Shriram Finance offers even up to 100% of the two-wheeler cost. The maximum amount financed would rise with the vehicle’s cost, your loan eligibility, and the percentage of financing that Shriram Finance would approve.
Why Should You finance from Shriram Finance?
Shriram Finance ensures minimal documentation and facilitates online submission to accelerate loan processing. The disbursal is done within 24 hours of the finance approval.
Shriram Finance is adept in processing loans with ease on both online and offline platforms. It has over 2,875+ branches spread across India, where borrowers can physically apply for their two-wheeler loan. Its online platform is user-friendly and promotes a faster loan application process.
As discussed above, Shriram Finance sets a high standard when it comes to your two-wheeler loan experience.
- Streamlined online application process with fast loan processing. Their extensive nationwide physical presence complements this.
- Shriram Finance’s two-wheeler money lending is made at interest rates as low as 11.5%*p.a.
- Shriram Finance has no charges on No Dues Certificate/No Objection Certificate and accepts foreclosure at a minimal charge. If you wish to foreclose your borrowing, you can do so after the payment of six EMIs. Depending on the opted scheme, the foreclosure charges start from 4% of the remaining amount.
All these factors make Shriram Finance your perfect finance provider, whatever be your two-wheeler budget.
At Shriram Finance, each financing is judged on the merits of the application and eligibility. If an expensive two-wheeler is in question, but the applicant presents a robust relationship prospect, Shriram Finance may go on to finance the two-wheeler.