How To Apply For Two-wheeler Loan?

By Author: Anujit Bhattachaarya
Total Articles: 14
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One of the most popular loans that are available in the market today are motorcycle loans. Getting a two-wheeler is has become easier for people because of the number of lenders offering these loans. The digital revolution and easy availability of internet amongst people has led to lenders having websites offering these online loans. The application procedure has also become simple.

Here is the step by step procedure on how to apply:

The first step of applying for a two-wheeler loan is to zero down on the bike model that you want to buy. A lot of factors will depend on the bike model and make that you choose.
Once the bike model is chosen, you will have an idea about the principal amount for your loan. Generally, lenders do not lend 100 per cent of the on-road price of the bike. They lend between 65 per cent to 80 per cent of the price of the bike. The remaining amount must be paid out of your pocket or as a down payment. Hence you need to be careful ...
... while making an application.
The third step is to compare between different lenders. Each lender will have a different rate of interest for their loans and tenures. Some may have a fixed rate of interest and others may have a floating rate of interest. Some may have a fixed tenure for loan repayment whereas others will have a flexible repayment tenure. One way to compare between different lenders is to use a two-wheeler loan EMI calculator. Using this calculator can help you find out the monthly installment amount and the total interest that is paid out on the loan for the entire duration.
Once you decide a handful of lenders to whom you want to make a loan application, you need to check your loan eligibility. Most lenders have their loan eligibility criteria clearly displayed on their website. If you don’t meet the loan eligibility criteria, then there are greater chances of your application getting rejected. Whenever you make a loan application, the lender requests a hard pull of your credit information from the credit bureau. Multiple such applications can downgrade your score and these hard pull requests show on your credit report for a period. Precisely why you need to be careful while making loan applications.
You can make a bike loan application either online or offline. In both cases, you need to fill up the loan application form and submit the required documents. Once you submit this to the lender, the lender will assess the loan application.
The documents required for a motorcycle loan are:

Fully completed loan application form
Income proof (ITR V copies, Form 16, bank statements)
Address proof (Aadhar card, Passport, Voter ID, Driver License, Electricity bill, Telephone bill, Gas bill, Home loan papers, Home ownership documents)
Identity proof (PAN card, Aadhar Card, Passport, Voter ID, Driving License)
Passport size photos

A bike loan is a secured loan which means the vehicle is hypothecated to the lender. The lender pays the amount to the dealer from whom you purchase the vehicle. However, once you have repaid the bike loan, be sure to take extra steps to remove the hypothecation so your name appears as the owner.