Apply for Two Wheeler Loans Online

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.

Related Post

Leave a Reply