Two Wheeler Loan: All You Need to Know
When considering the population of India, it is a known fact that the majority of the population falls in the category of middle-class. And, when it comes to owning a vehicle, a two-wheeler is usually their first choice. But, most of the times, financial instability ensues after the purchase of a two-wheeler. This is where a two-wheeler loan comes to your rescue.
Securing a Two Wheeler Finance
The fact that it reduces the financial burden for a person living on a stringent budget is the prime reason why people opt for a bike loan. Moreover, getting a two-wheeler loan has become a lot simpler in recent times, which makes it a game changer.
The first and foremost thing in securing a two-wheeler finance loan is that you need to fulfil the eligibility criteria.
- You have to be at least 21 years of age and not older than 65 years of age. Although some of the banks and financial institutions provide relaxation for a person who is above 18; in such cases you have to apply for the loan with a co-applicant.
- You have to be a salaried employee or a self-employed person. Along with these criteria, banks usually check for the stability of your employment, your residential address, etc.
Choosing a Bank or Financial Corporation
Once you are sure that you are eligible for obtaining a bike loan, the next thing to decide is on the loan provider. Nowadays, there are numerous banks and non-banking financial corporations that can provide you with a bike loan. The distinguishing factor between these financial corporations and banks will be their interest rates. Hence, it is wise to do your research and find a repayment schedule that is suitable for you.
There are numerous documents required for getting a bike on finance. These documents are to be filed together with a loan application. Even though some of these documents are particular to the bank, in general, you would require the following mandatory documents.
KYC Documents – KYC or Know Your Customer documents are identity verification documents and some of the common documents under this category are driving license and Aadhaar card.
Passport Size Photographs – Passport size photos are often used in almost all applications, and a bike loan application procedure is no different.
Address Proof – Any document validating your residential address can be submitted as address proof. Some of them include passport and utility bills like electricity or telephone bills.
Bank Statement – A statement of your savings bank account is another document that you would need to produce.
Along with these documents, banks usually ask the customer to produce other documents like income certificate or post-dated checks for increasing your loan approval chances. It is always better to check with the bank or financial firm of your choice to get the complete list of required documents.
Loan Application Procedure
Along with all the documents mentioned above, you will have to fill out a loan application form. Once this loan application form and the necessary documents are filled, it is to be filed at the local bank branch where it goes through a series of approval procedures. Once your loan request is approved, the amount will be credited to your account provided at the time of the application. Once after the loan application is approved, the EMI according to interest rate needs to be paid for the applicable tenure. Nowadays, the whole procedure of getting a bike on finance has been simplified. There are banking and non-banking financial corporations that even provide instant loans in a matter of hours. However, it is always important to make sure that you are eligible and have all the necessary document in order for a smooth approval procedure.