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Apply for Two Wheeler Loans Online

Bike Two Wheeler Loans

A two-wheeler loan helps you purchase a motorcycle or a scooter of your choice and pay for it in equated monthly instalments (EMIs). Two-wheeler loans are available for both salaried and self-employed individuals. You can apply online and get instant approval. You can also walk in to a two-wheeler dealership where our representative will help you complete the formalities and inform you if you are eligible for a loan on the spot.

Types of Two-Wheeler Loans

Features of Two Wheeler Loans

Loan amount ranging from INR 1 lakh to INR 25 lakhs
Flexible repayment tenure from a year up to a maximum of 5 years
Funding limit of up to 100% of on-road price

Eligibility Criteria

The following people are eligible to apply for a Two Wheeler Loan:

Preferred Credit scoring 750
A salaried or self-employed individual
Individuals who are a minimum of 21 years of age at the time of applying for the loan, and no older than 65 at the end of the loan tenure
Those who earn a minimum gross income of Rs.50,000 per year for a salaried profile, and Rs. 72,000/- per year for a self-employed profile
Individuals who have been residing at the given residence for a minimum of 1 year (in case of transfer from another location with less than 1 year at the current location, kindly provide relevant documents to the bank during loan approval stage)
Those who have been working for a minimum of 1 year
Individuals who have a telephone/office landline connection

Documents required for Two Wheeler Loan

- A copy of any of the following identity proof documents:
  - Passport
  - Photo Credit Card (front & reverse)
  - Voters ID Card
  - Driving License
  - PAN card
  - Copy of Company ID card of MNC/Public Ltd./PSU/Govt. Company
  - Ration Card (if photo is provided)
- A copy of any of the following documents as address proof:
  - Passport
  - Voter’s ID Card
  - Driving License
  - Rental Agreement
  - Telephone Bill
  - Electricity Bill
  - Gas Connection Bills
  - Ration Card
  - Sale Deed
  - Property Purchase Agreement
  - Credit Card Billing Statement (latest)
  - LIC Policy
  - Letter from Company or Company Provided Accomodation (List of the company’s as per the Banks List – ID card of MNC/Public Ltd./PSU/Govt. Company, containing the residence address)

The following Income Proof:

- Salaried: Latest salary slip for Govt. employees. If Salary slip is not available, only salary certificate to be accepted with deductions. For Partnership/Proprietary firms & Pvt. Ltd. Co’s – Salary Certificate to be accepted with the following mitigants: Salary Certificate to clearly state the deductions, and Name & Designation of the authorised signatory.
- For Self Employed: Copy of the latest Income Tax Return

Two-Wheeler Loan Interest Rates

Interest rates ranges between 11%-18% offered by various banks and nbfc depending upon customers location, income, residence, employment, credit history, existing credit.

Two-Wheeler Loan Fees and Charges

Processing Fee – to process loan application bank and nbfc charges processing fee upto 3%

Pre-payment charges – to close the loan before due date , banks and nbfc charges pre payment or pre closure charges up to 5% after 12 months of replayment

FAQs on Bike Loans

What is the loan repayment process?

You will need to repay your two-wheeler loan through Equated Monthly Instalments or EMIs where you pay a fixed amount each month until your loan is repaid. Every instalment of the loan that you repay will be partly made up of principal repayment and partly of interest payment. Once you complete your loan repayment, you can apply for the removal of hypothecation on your vehicle and you will gain complete ownership.

Do I need to make a down payment or pay margin money?

Yes, the down payment is just a small amount you need to pay at the vehicle dealership and is only the difference between on the on-road price of the two wheeler amount and the loan sanctioned to you. You will be able to get up to 95% of the vehicle’s cost as a loan, which ensures that the down payment or margin money is always a small component

Is the interest on my loan fixed or variable?

Banks and NBFC offer a fixed rate of interest on two-wheeler loans and help you with a planned repayment programme that is suited to your needs. The loan can be repaid gradually in EMIs thus ensuring that you do not have to bear a large expense all at once while buying your two-wheeler. You have the option of picking a flexible tenure for the loan that can range from 06 to 60 months.

What is the maximum loan I can take for a two-wheeler?

You can take up to 85-100% of the on-road price of the vehicle’s value as a loan. This allows you to make a down payment of the on-road price of the vehicle minus the sanctioned loan amount.

How can I remove hypothecation on my two-wheeler after I have repaid the loan?

Bank and NBFC will send No Objection Certificate (NOC) to your registered address once your loan has been repaid. You can contact your local registration and licensing authorities with this NOC to get hypothecation removed from the vehicle.

What about a security or collateral?

Your vehicle is hypothecated to Bank or NBFCt and serves as the security during the tenure of the loan. There is no need to provide any additional security. We would just need your KYC documents along with your bank details to process the approval.

Can I repay the loan before the tenure expires?

Yes, you can repay the entire loan amount before the tenure expires through bank and nbfc website or mobile application.

Two Wheeler loan

Best two wheeler loan providers in Delhi NCR

Are you planning to purchase a bike anytime soon? Are you worried about the finances and want to apply for two wheeler loan soon? If so, then let us take your worries away. Quikkloan is the best two wheeler loan provider marketplace is here to resolve all your worries.

What is a two-wheeler loan?

Two-wheeler loan is an amount that a buyer borrows from a bank to purchase a two-wheeled vehicle such as a scooter or motorbike etc. It is generally easier to get a loan approved from two-wheeler loan providers and the interest rates are also affordable.

Types of two-wheeler loans

You should know the types of two-wheeler loans available in the market even before you reach out to bike loan providers to apply for two-wheeler loans

Secured loans

Secured loans are taken against security or collateral. The collateral can be home, lands, bonds etc. These loans are easily available with a lower rate of interest.

However, you risk losing your assets in case of non-repayment of the loan.

Unsecured loans

These loans don’t need any collateral for 2-wheeler loan sanction. However, the rate of interest is quite high and not so easy to get.

Features of 2 wheeler loans

Credit score: A higher CIBIL score will fetch you a 2-wheeler loan easily. Keep the score high before you apply for two-wheeler loans.

The margin of finance: The margin of finance can go as high as 90% with some bike loan providers. Therefore, you need to just pay 10% as down payment.

Annual Income leverage:

You can apply for two-wheeler loans if you earn at least INR 50,000/- annually. Since loan tenure can extend up to 4 years, your EMIs won’t pinch your pockets.

Other costs:

It is good to cover the costs of accessories, insurance and registration in loan amount. The premium is often less if extra security and safety features are present in the vehicle.

No prepayment fee:

Many bike loan providers don’t charge a prepayment or foreclosure fee.

Eligibility

Age: You need to be a minimum of 18 years old to apply for two wheeler loan. Some bike loan providers also have21 as minimum age criterion.

Employment details: Salaried and self-employed with regular income can apply for two-wheeler loans. Most bike loan providers have minimum income criterion too, though it’s quite low.

Residential status: You Should have a minimum of 1 year in current residence to apply for a Bike loan

Credit score: You should have minimum 700+ CIBIL score to get loan approval. You can try peer-to-peer lending companies in case you have low CIBIL score.

Documentation

You need the following documents before approaching a two-wheeler loan provider.

ID proof such as PAN, Passport, Driving License, Voter ID and Aadhar card
Address proof such as electricity bill, mobile bill etc.
Employment proof: Salary slips and bank statements
Photographs

Fees and charges

The processing fee is charged for processing the loan request. Prepayment fee is quite negligible in most banks and almost zero in some. Late payment fee is charged on EMI payment missed during loan repayment tenure. Some banks charge administrative Fee sometimes too.

If you need further help on 2 wheeler loans, do visit Quikkloan for quick and hassle-free guidance.

Quick Two Wheeler Loan