Can I get a loan for any used two-wheeler?

Most banks and financial institutions provide loans for purchasing new and used two-wheelers. The eligibility criteria and loan amount may differ slightly from one loan provider to another. Here is a list of key details:

• Loan Amount: The amount a lender will provide for a used two-wheeler is typically lower than for a new vehicle, often around 70-85% of the vehicle's cost.
• Interest Rates: Interest rates for used vehicles are generally higher, as they are considered riskier for banks and Non-Banking Financial Companies (NBFCs).
• Repayment Period: Loan repayment periods for used two-wheelers tend to be shorter, usually between 1 and 3 years, compared to up to 5 years for new vehicles.
• Eligibility Criteria: To qualify, you must meet the minimum age, which is usually 18 or 21 years, and the maximum age, typically around 59 years.
• Documentation Needed: You'll typically need to provide your ID proof, address proof, bank statements to show your financials, and income documents. A good credit score can enhance your chances of approval.
• Vehicle Assessment: The loan provider will assess the condition and value of the used two-wheeler before approving the loan. Old or high-mileage vehicles may not qualify.
• Minimum Vehicle Value: Banks may not finance very low-value used two-wheelers—they tend to only fund higher-value used vehicles.
• Insurance Requirement: Many lenders may require you to have insurance for the used two-wheeler before disbursing the loan.
• Processing Fees: Be aware that there may be processing fees associated with the loan application.