As the traffic conditions are getting severe day by day, owning a vehicle seems to be the most diligent solution. For overcrowded roads, bikes or motorcycles make the best public transport solutions. Whether you need to go to the office, on a road trip, or complete multiple daily chores, a bike makes the perfect companion.
However, buying a dream 2 wheeler sometimes costs a lot. But you can still fulfill your dream and buy it. Your dream bike will come within budget while saving a lot of money for other vital tasks.
Do you need a loan for a bike or motorcycle?
Ideally, you can pay for a bike if it comes within budget. However, if the price range of the bike goes on, you would like to divide the burden into monthly installments and try for a bike/motorcycle loan. Well, in this case, you can apply for a bike or motorcycle loan. If you have no idea about checking your credibility for the loan, stay tuned to this blog. You will be guided through properly!!
What are the Bike/Motorcycle loan options available in the market?
Every bank/NBFCs has different ways of loans for a motorcycle or bike. So, before you plan to apply, you must research well and select one option. Some of the available options in the market are –
- Bike/ Motorcycle Loans
Many notable banks/NBFCs these days offer loans for both used and new bikes/two-wheelers. When you apply for the loan, they check your eligibility and verify the brand of the vehicle you wish to purchase. Upon the verification, you get the loan amount as decided by the bank.
- Dealer Finances
Apart from notable banks, many dealers out there in the market provide loans for bikes. However, different dealers have different criteria for lending loans. They look into your eligibility and hence decide on the loan amount.
- OEM Finances
There are some OEM (Original Equipment Manufacturing) companies that provide loans on their manufactured goods. Sometimes they offer a very good deal for bike or motorcycle finances.
- Personal Loans
Last but certainly not least, you have got another option for bike finances. You can apply for a net amount as a personal loan and purchase the bike you wish to buy. In fact, even if you got some remaining amount from the personal loan, then use it to modulate the bike.
What are the documents required for applying for a bike or motorcycle loan?
In general, every bank or private organization has different requirements; however, the required documents are almost the same. The list includes –
- Identity Proof
The documents include government-authorized identity like PAN Card, Driving License, Aadhaar Card, Voter ID, or Passport.
- Residency Proof
You can submit anything like Voter ID, Telephone Bill, Electricity Bill, Passport, or Driving License as residency proof. Whatever document you wish to submit, must have your residential address.
- Age Proof
Documents for age proof deduce your age eligibility for applying for the bike or motorcycle loan. You may submit any document, including a Voter ID card, Birth Certificate, PAN Card, or college/school leaving certificate.
- Income Proof
Documents for income proof include Form 16, Bank statements (3 months), and the latest 3 salary slips. You can submit any of these according to availability.
- Quotation of Bike
Quotation of the bike is basically the final amount being charged from you by the seller. Be it a used bike or a new one, you need to submit the quotation.
At a point, you have a fair idea about loan types for purchasing a bike or motorcycle and required documents. However, there is still a task left, which is about finding the right loan.
Below are a few steps explained for finding a bike or motorcycle loan:
Steps for getting a loan for buying a bike/ motorcycle
Verify your CIBIL Score
You must be aware of your creditworthiness before applying for a personal loan. If you haven’t missed any loan payments in the past, you will undoubtedly have a good score. However, only having a good score is not all – you need to have specific scores for the ease of the loan process. So, simply check your CIBIL and then apply for the loan. Rejection of loans also adds to a bad CIBIL score.
Decide a Budget
Once you have a clear idea about your CIBIL, decide your budget. As you don’t want yourself to struggle with heavy financial burdens, keep it precise and easy to payback. Therefore, do the calculation carefully!
Compare and Shortlist Options
As you seek a loan for purchasing a motorcycle or bike, you need to apply with reliable lenders only. Therefore, compare the loan terms and duration of different loan providers and shortlist one of them. You can perform the comparison based upon interest rates, monthly installments, and loan terms.
Stick to a Reliable Lender
Select the one with better options in terms of low-interest rates, high repayment duration, and low monthly installment. Choosing a reliable lender is very important and hence, research well.
Explore their Offers
As you tend to choose one among the others, you can also run a quick check on various offers they are providing to their deemed customers.
Always Be Transparent
While applying for a loan, you need to be transparent about everything, including interest rates, credit history, repayment clauses, etc. If any of these important aspects are kept hidden, you can incur a huge loss in the future.
Apply for loan
Once you have researched everything related to a good lender, apply for the loan, and wait for the approval. If your submitted information is valid, you will soon be notified about the loan acceptance from the loan-providing institution.
Quick tips
- Be aware of processing fees
- Get well informed about pre-closure clauses
Getting a loan is a cumbersome task. It needs a lot of dedication and hard work. Therefore, if you need one, always do perform the task with the significant exception. You can also take help online and search for a reliable source that can help you get easy new/used bike loans.
