The market for two-wheelers in India has reached a volume of 18 Million Units in 2022. The IMARC Group forecasts the volume to reach approximately 48.1 Million Units by 2028, at a growth rate of 17.80% during 2023-2028. 

Within the Indian context, several households prefer taking a two-wheeler loan to purchase a bike rather than shelling out their hard-earned savings, even if they can afford to buy a two-wheeler straight-up. This is because of the easy availability of loans, quick application and disbursal process, low rates of interest, and easy EMIs on flexible tenures.

In this post, we will discuss every important detail you need to consider when applying for two-wheeler loans.

Read on!

Why Should You Get a Two-Wheeler Loan?

Before we jump to the procedure of applying for a two-wheeler loan, let's look at some key reasons why you should apply for a two-wheeler loan:

• Two-wheeler loans come with a low burden on your finances

• The application, verification, approval, and disbursal are easy and instant

• Advantage of flexible tenures

• Low rates of interest and low EMIs

• High loan amount

• Bike loans can boost your credit score

Eligibility Criteria to Check Out

Checking the eligibility criteria of your two-wheeler loan before you fill out the application is essential to avoid rejections. The criteria may differ from one lender to the other; however, there are some common factors that every lender checks when approving loans.

Given below are some of these common factors you need to check when applying for a loan:

• Your age should be a minimum of 18 years, and you should be an Indian

• Both salaried and self-employed individuals can apply for two wheeler loan

• The minimum income required is Rs. 8000

• Salaried individuals should have a minimum experience of 1 year with six months experience with the current employer. For self-employed, it is important to be in the same business for at least a year.

• You should have a high credit score. The higher the credit rating, the lower will be the interest rate. Several financial institutions offer bike loans to people with a low credit rate; however, this offer is made with a high rate of interest on it.

• You should submit the necessary ID/address/age proof documents, along with employment and financial records.

Important Factors to Consider Before Applying for a Bike Loan

When applying for a two-wheeler loan, you must take the following details into account:

1. Bike loan eligibility generally ranges from Rs. 10000 to Rs. 1.5 lakhs with a maximum of 95% of the bike’s market value. Also, make sure you include registration and insurance costs in your loan account. Try and arrange for a large lump sum payment as a down payment, which will minimise your loan amount and eventually reduce your interest charge and monthly EMI amount

2. You can apply for a maximum tenure of 48 months

3. You can compare various offers, monthly EMIs, and rates of interest offered by different financial institutions using a two-wheeler loan EMI calculator

4. Look for Pre-approved two-wheeler loan options, as they come with low-interest rates.

5. Check out seasons loans, discounts, and deals. Also, consult your existing financial institutions with whom you regularly bank so that you can grab the best offer.

6. Check for additional fees and charges, especially the pre-closure loan charges

7. Read the terms and conditions very carefully to ensure you understand all the terms and obligations of the loan agreement.

How to Apply for a Bike Loan?

Follow the below-mentioned steps to apply for a bike loan:

Step 1 – Compare different loans and interest rates offered by various lenders to find the right loan suitable for your requirements.

Step 2- Visit the website or mobile app of your preferred lender and fill out the online loan application

Step 3 – Submit the required documents online

Step 4– Wait for verification and an instant approval

Step 5– You will get doorstep service for the rest of the formalities, after which your loan shall be disbursed within 24-48 hours in your bank account

Conclusion

Two-wheeler loans are more of a preference than an option for low-income and middle-income people. These are hassle-free loans that come with low EMI amounts and low-interest charges, and you get easy options to repay your loan following a flexible schedule of repayment.

The popularity of 0-interest two-wheeler loans and loans without down payment is surging, and the best part is you have several loan options that can be customised according to your needs today. All you need to do is compare different loans, trust a reliable lender, apply online, and ride your dream bike home with confidence and financial ease.