Purchasing a bike can be an expensive affair and therefore, you may require some financing. The most popular option to avail of such financing is through a bike loan. Such loans are available at affordable interest rates, minimal documentation, and quick approval.
If you are a first-time loan applicant, you may have several questions about such finance. Here are three things you need to know while applying for such loans.
#1 Eligibility criteria
To know your eligibility, you will have to provide some basic information like residence type, employment, salary, location, Permanent Account Number (PAN), and required amount. You may also provide these details online through the lender’s website.
Based on the information given and your credit score, the institution will approve your application. Here are three points to remember while determining your eligibility for two-wheeler loans.
Furthermore, the minimum income requirement may vary from one institution to another.
#2 Interest rate
The bike loan interest rate is an important aspect to be considered. Most lenders provide such loans at an affordable interest rate. Furthermore, they offer a flexible repayment schedule through Equated Monthly Installment (EMI) that helps prevent any financial strain. However, if you have a low credit score, you may have to pay a higher two-wheeler loan interest rate.
#3 Documentation requirements
One advantage of such loans is the simple documentation. You have to submit proof of photo identity, income, and address. Additionally, you need to provide a bank statement and latest photograph while submitting the application form.
Six steps to apply for a two-wheeler loan:
As mentioned above, the process to apply for such loans is simple and quick. The seven steps involved are as follows:
- Assess your financial situation
- Shortlist the bike
- Fill out a simple application form online
- Determine loan eligibility
- Submit the required documents at the showroom
- Receive sanction and disbursement of loan
Purchasing a bike on EMI is simple and online loan application ensures the entire procedure is completed quickly. Several financial institutions offer such loans, thereby making it easier for you to purchase your dream bike.
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