Bikes have become a popular choice of transport for most Indians for commuting from one place to another. It is evident from the fact that more than 120 million bikes were sold between 2012 and 2018. Bikes offer better mileage than four-wheelers, are affordable than cars and can help one to manoeuvre heavy traffic prevalent in almost every major city. Lenders across the country offer bike loans, which make it easier for an individual to buy a bike and make one’s life more convenient. Although the two-wheeler loan or bike loan interest rate is different for every lender, it is affordable for the common man. This article will help you choose the lowest two wheeler loan interest rate.
Bike Loan Eligibility
Every lender has set a different age limit for people who want to get a two-wheeler loan. The minimum age is 18 at the time of application. The maximum age limit is 65 years at the end of the loan tenure.
Lenders only approve a two-wheeler loan for individuals who have income and income proofs. They can either be self-employed or be salaried individuals.
Earning more gives the lender assurance that a borrower will be able to repay the bike loan on time. Lenders have set a minimum income that a borrower should have to take a lender loan. It is around Rs. 96,000 per annum for salaried profiles and 1,20,000 per annum for self-employed professionals.
Lenders require you to have a year’s worth of work experience and at least six months with your current employer. For those who are self-employed, a 5-year tenure and ITR for the past two financial years it required.
Existing Debt Situation
Lenders will check your debt history before approving your loan. If a person already has a lot of debts to their name, approval of the loan may not take place. It is because of the risk of not repaying increases in such a case.
Area of Residence
It is easier to get a two-wheeler loan if you live in a metropolitan or a big city.
Documents Required for a two-wheeler loan:
Lenders require a few documents that need to be submitted before you take a loan. These act as proof that you are eligible to get a loan. Documents required will be different for different lenders but generally, the documents listed below are required:
1. Identity Proof: Aadhar Card, PAN Card, Passport, Voter ID, Driving License
2. Address Proof: Rental Agreement, Aadhar Card, Passport
3. Asset Proof: Latest Land, Building or House Tax Receipt
4. Recent Passport size photographs of borrower
5. Proof of Income: Lender Statements, Income Tax Returns, Salary Slips
How to choose the perfect bike loan interest rate?
The interest rate for a bike-loan depends on numerous factors and differs from lender to lender. Some critical factors are:
There are a lot of options that may be suitable for your budget and income, which can help you get the bike of your dreams at the lowest interest rate.