A two-wheeler is a very convenient mode of transport. A lot of two-wheeler finance options are available in the market to cater to the needs of various bike-loving individuals. These loans come at attractive interest rates and comfortable EMI options to make sure that it does not affect your regular monthly budget. If you are stressed about how to get your desired bike loan, let us tell you it is not that difficult. All you need to do is to pick the best loan offer from the market and check your eligibility and apply for it. The entire process of procuring a bike loan can be divided into the following segments.

Checking Eligibility and documentation

  • The minimum age requirement of a two-wheeler loan is 18 years like any other l conventional loan. The upper age limit should not exceed 65 years at the time of the closing of the loan.
  • The applicant should be continuously staying in the same house for a minimum of one year. This is to reflect residential stability.
  • The applicant must produce proof of job stability for at least one year. Those who are self-employed must produce proof of IT returns of two years
  • Applicants should possess a decent CIBIL score
  • Applicants must also have KYC documents, identity proof, address proof, and a recent passport-size photo

Checking Interest rate

The interest rate varies from lender to lender. Usually, it starts from 11.80 percent onwards and can go up to 14.50 percent.  The repayment duration is given between 12 to 36 months. Additionally, a minimal fee is also charged for processing the loan. This amount is non-refundable.

Calculating your loan EMI

The next step is to check how much EMI amount you will require to pay against your bike loan and up to how long. Here you can use a bike loan calculator, an online tool to check various bike loan offers and compare the EMIs and interest rates of each of them. You can adjust the interest rate, duration, and EMIs of the loan according to your individual financial condition.

Checking your down payment requirement

When you are getting your two-wheeler finance to buy your dream bike you will require paying a down payment amount to the lender. Usually, it covers 15 to 30 percent of the bike’s value. Experts advise you to pay a down payment as it will help to lower your EMIs. The amount of the down payment is determined by a lot of factors such as the type of income source you have and the type of two-wheeler you are availing. For example, if you are looking for the best hero glamour down payment options, these factors will be decisive.

  • Total value of the bike
  • Your capacity to repay the loan
  • Your credit score

Remember that a higher credit score will enable you to get a higher amount of bike loan.  A good financial institution will always help you get the most suitable down payment and at the same time will make sure that you will get the lowest EMI possible.  So choose a lender who is willing to assist you with your bike’s down payment.

Submitting your bike loan application

Once you complete your search for the best two-wheeler offer you can go ahead and submit your documents online at the lender’s website and wait for the approval. In the process, you will also need to provide the vehicle details you are intending to buy, such as the dealer’s name, RTO location etc. The best part about an online loan application is that it ensures faster approval. If you are eligible your loan can get approved in a few minutes.

Wrap up

The advantage of two-wheeler finance is that it allows you to enjoy your choice of a vehicle without sacrificing your savings. Consider every detail about getting a bike loan as mentioned above including. The down payment part which makes many borrowers nervous. As stated above if the lender is helpful you can get the best rate on your hero glamour down payment.