What You Should Know Before Applying For Two-Wheeler Loans

Considered an inexpensive vehicle offering excellent mileage, two-wheelers remain the most common vehicle on the Indian roads. A compact sized automobile, the two-wheelers help navigate through jam-packed traffic, despite the rush hour. If you do not have the necessary fund to buy a bike, you can apply for a loan and become the owner. You can approach banks or NBFCs and get approval for the loan.

If you intend to take out a two-wheeler loan, you should know some aspects of this vehicle. They are –

Types of bikes you can buy

With the bike loan, you can buy all types of two-wheelers. The most common examples you can buy through loans include bikes and scooters such as gearless motorcycles. However, a few lenders also offer finance to those who seek to buy luxury bikes, dirt motorcycles, and other such two-wheelers, which comes with at a hefty price.

Availability and eligibility

As mentioned earlier, banks and NBFCs offer loans for two-wheelers. They usually set essential eligibility criteria for these loans. For example, you should be between 18 to 70 years at the time of repayment to be eligible for the loan. Also, you can avail such loans if you are salaried or self-employed. However, most lenders require you to earn an annual income of INR 60,000 to INR 1 lakh for applying for such a credit.

The maximum loan amount and down payment

With the demand for luxury bikes increasing among consumers; lenders offer such loans for approximately INR 25 lakh. However, the percentage of two-wheeler loan you get depends on the type and motorcycle price you seek to buy. For example, if they are scooters and standard geared bikes, you can avail of up to 100 per cent of the vehicle’s on-road price. But if the loan amount exceeds INR 1 lakh, you need to pay a margin or down payment of 5 to 20 per cent based on the actual loan amount you require.

Application process and disbursal

There are different ways of applying for the bike loan. For instance, you can visit the lenders’ office and apply for the loan personally, once you decide the kind of bike you want to buy. Sometimes, auto-dealers also help with the loan process, but this does not favour you always. The best and a convenient way to apply for the loan is online through our preferred lender’s portal. Fill the application form, submit the documents, and send your application. Online loans get disbursed faster than offline loans, i.e., within 24 to 48 hours.

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