How to Apply for a Bike Loan
We understand how convenient it is to own a two wheeler and the ease of access that it provides. With the demand for two wheelers increasing every day, getting a bike loan or a two wheeler loan is very simple. You can start riding your bike in no time with minimal documentation and quick processing. Any individual above the age of 18 years can apply for a loan, however, some banks prefer that the applicants are 21 years or older. You can apply for bike loans online on the respective bank’s website as well as offline at the bank itself. However, in either ways, before beginning the process, you can be prepared with all the documents that are required to get the loan passed in the first go.
Documents required for the application
For the application, you would require an address proof which is usually demanded in the form of any of the household utility bills, a voter’s ID, passport, or even a driver’s license.
Except the utility bills, all the aforementioned documents also qualify as ID proof, which is another requirement for the loan application. Your passport sized photograph is also required for the application.
Since it is a loan application, you must also submit an income proof to show that you meet the minimum income criteria. Ideally, the salary slip from past 3 months along with the bank statement and the latest TDS certificate suffices this requirement.
The Application Process for a Bike Loan
For online applicants in most banks, you only have to fill the application form and submit the relevant documents after checking the eligibility. You can select the two wheeler loan tenure which is usually between 1 and 5 years. After this, you can visit the dealership and present the documents with the approved loan and the next step you know is you are leaving the showroom with your bike. All banks charge a fixed rate of interest between 10% and 18% for the loan. Your bike is hypothecated until the full loan amount is repaid. Upon the full repayment, you would receive an NOC from the bank which will have to be submitted to the RTO. The hypothecation can be released then.