In India, owning a two-wheeler is essential amid rising urban congestion. For those unable to afford an outright purchase, two-wheeler loans from banks and NBFCs offer a practical solution. These loans are secured against the vehicle, enabling individuals to realize their dream of owning the ideal two-wheeler with financial assistance.
Securing A Two-Wheeler Loan
In India, securing a two-wheeler loan through banks or NBFCs is the main avenue for bike financing. These loans use the vehicle as collateral, streamlining the approval process, with repayment structured through convenient Equated Monthly Installments (EMIs).
Interest Rates And Loan Terms
In India, two-wheeler loan interest rates start at 9%, varying based on the borrower’s credit score and other factors. Rates can reach up to 26%, influenced by the borrower’s relationship with the bank, income source, age, and employment status. Loan terms usually range from four to five years, allowing borrowers to choose based on their financial capacity and preferences.
Documentation Required
- Proof Of Identity: Two to six passport-sized photos
- Identity Verification: Acceptable identification documents include a passport, PAN Card, Aadhar Card, Voter ID card, driver’s license, and proof of employment.
- Income Proof: For salaried individuals, the final Form 16, employment offer letter, pay slips, and bank statements. Self-employed individuals need to provide evidence of their income.
Benefits Of Two-Wheeler Bike Loans
- Low-Interest Rates: Access to low-interest loans for bikes and two-wheelers makes these loans attractive to potential buyers.
- Choice Of Model: Financing allows individuals to confidently purchase their preferred bike or two-wheeler model without compromising.
- Flexibility For Superbikes: Simple bike loan options open the door to more extravagant choices like superbikes.
- Manageable EMIs: EMIs, due to their manageable amounts, enable borrowers to make payments without financial strain.
- Flexible Repayment Terms: Two-wheeler loans typically offer flexibility in the repayment duration, allowing borrowers to align it with their financial obligations.
Tips For Effective Bike Financing
- Selecting The Right Two-Wheeler: Understand your needs, budget, and preferences before choosing between a gearless scooter for city commuting or a more robust bike for longer rides.
- New vs. Pre-owned: Decide whether a new or used bike suits your requirements and budget, considering the long-term maintenance costs.
- Checking Credit Score: A higher credit score can result in lower interest rates. Monitoring and maintaining a high credit score is beneficial for various financial transactions.
Two-wheeler bike loans offer a conventional and secure way to finance the purchase of a vehicle in India. With minimal documentation, no down payment, and easy EMI repayment plans, these loans provide an accessible avenue for individuals to fulfil their dream of owning a bike. Also, choosing the right bike insurance policy is crucial for financial protection against the bike’s potential damages, loss, or third-party liabilities. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Exploring options and comparing bike insurance policies online is advisable to find comprehensive coverage that suits your needs. Make sure you carry out the process of bike insurance renewal on time. *
You can use a bike insurance calculator to estimate the costs of bike insurance premiums to be paid. Make sure you compare bike insurance online before buying one.
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
