Two-wheelers are one of India’s most common transport types for their numerous benefits. From being convenient to affordable, two-wheelers are the best option for every Indian. As navigation gets easier, bikes have been spread across the country in large numbers. However, a bike loan is the best option if you are willing to get your two-wheeler but need more funds. A Two-wheeler loan enables you to buy a new or a second-hand bike that you are eager and need.
Bike loans are available from numerous sources, including financial institutions and banks. One must meet various requirements and eligibility criteria to sanction a loan. But with the knowledge of the suitable eligibility criteria and documents for a bike loan, this process can be straightforward and hassle-free. However, this guide will help you know about bike loan eligibility and the required documents so you can easily apply for your loan.
Features and Benefits of Bike Loans
Before heading toward the eligibility criteria and documentation for applying for a two-wheeler loan, you must also know the various features of a bike loan.
- To make the loan application procedure more straightforward and effortless, most loan providers ensure that the documents for bike loans are primary and easy to apply.
- Some loan providers offer their existing customers pre-approved two-wheeler offers with the extra benefits of quick approval and disbursals, lower processing fees, and zero documentation.
- Most lenders have relatively simple eligibility criteria which help applicants efficiently avail of their loan and buy their dream bike.
- Bike loans come with convenient repayment tenures.
- Different banks and financial institutions offer online loan approval processes so applicants can get loan approval quickly.
How to Fulfill Eligibility Criteria of Bike Loan?
A two-wheeler loan provider offers convenient eligibility criteria so an applicant can easily avail of a loan. However, you must be a citizen of India and be above a minor age to obtain a loan. You can get suitable two-wheeler offers if you fulfill the eligibility criteria. You can quickly get your loan approval with a good credit score. If you are salaried, you must have at least 6 months of experience in your current job. Or if you are self-employed, you must have your current profession for at least one year. Moreover, you must have a stable income and a good debt-to-income ratio to get your loan approval.
Essential Documents for Salaried Person
The documentation criteria differ for a salaried person and a self-employed or business person. However, if you are salaried, you must provide the following documents for bike loan approval.
- Obligatory Documents: there are two mandatory documents that every loan provider asks for, which are a passport-size photograph of an applicant and a duly filled application form.
- Residence Proof: These documents can be a ration card, Aadhaar card, passport, utility bill, and property or municipal tax receipt.
- Identity Proof: You must provide identity proofs- Aadhar card, passport, driver’s license, Voter ID, PAN card.
- Age Proof: Driver’s license, passport, PAN card, and birth certificate.
- Employment Proof: Provider a copy of your existing job offset letter.
- Income Proof: provide the last 6 months’ salary slips, bank statement of at least 6 months, from 16, and salary certificate stating your designation, name, and authorized signatory.
Essential Documents for Self-Employed Individual
Self-employed persons such as a doctor, CA, business people, architects, etc., must provide different documents than salaried persons. However, you must provide the following documents for a bike loan if you are self-employed.
- Mandatory Documents: You must submit your passport-size photograph with a duly filled loan application form.
- Address Proof: you must submit any of the following address proof- an Aadhaar card, driver’s license, passport, Ratio card, or utility bill.
- Identity Proof: you must submit any identity proofs- A voter ID card, driver’s license, passport, or Aadhaar card.
- Business Existence Proof: Provide any of these documents- shop establishment proof, copy of Tax Registration, or Company Registration Certificate.
- Office Address Proof: You must provide any of your office address proof such as Utility bill, Maintenance Bill, Rent agreement, Property Documents, SSI or MSME registration certificate
- Income Proof: Provide the last 6 months of your bank account statement and recent ITR (Income Tax Return).
If you are planning to buy a two-wheeler, it is crucial to meet the eligibility criteria and submit your documents for bike loans. You must consider all the above factors to fulfill your loan eligibility criteria. Moreover, if you accomplish all your eligibility criteria, you can also benefit from extra two-wheeler offers with your loan.