All Documents You Need To Apply For A Two-Wheeler Loan

As the world’s one of the largest two-wheeler markets, India has many people who depend on two-wheeler loans for buying their desired vehicle. A two-wheeler loan eases the financial burden of buying a two-wheeler and makes the whole process much easier by evenly spreading out the risk. For most people, especially in the urban towns and developed rural areas, paying an EMI is much easier than shelling out a massive amount at one go. However, getting a loan sanctioned also depends on whether you are submitting the right documents or not. This article talks about the entire documentation process concerning a two-wheeler loan. But, let us first look at what are the main features of a two-wheeler loan.

Features of Two-wheeler Loan

• Loan Eligibility

The eligibility for a two-wheeler loan is straightforward. You need to be a working professional and be aged 21 years or more. The age bracket should not exceed more than 60 years when the loan tenure ends. This is for the people who are service professionals, whereas, for self-employed people, the age should be between 21years and 65 years. The income bracket is also fixed from the starting range based on the metro or non-metro residence. You should also be staying in the city for about a year or more and have a working phone number at your residence or office.

• Loan Amount

The loan amount can be anywhere from Rs 10,000 to Rs 100,000 depending on the requirement and the kind of two-wheeler you choose. This loan amount is also directly proportional to the income you make each month.
 

• Repayment Period

The tenure to repay the two-wheeler loan can be up to 48 months from the day of loan disbursement. So, you need to decide the tenure before your loan gets disbursed.
 

• Loan Approval

The loan approval is based on the documents you submit and the kind of income you get during the month. The basic criteria include that you should be able to repay the loan post taking care of all your regular unavoidable expenses. This would make the loan approver know that you are eligible for the loan and approve it with ease.
 

• Registration Cost

Before you start searching for important documents for a bike loan application, did you know that your two-wheeler loan amount covers the cost of bike registration fees? When you apply for a bike loan, the loan amount covers the cost of insurance as well as registration of your bike.
 

• Pre-approved Loan

One of the best features of two-wheeler loans is that most lenders provide pre-approved loan offers to their existing customers. If you have taken any type of loan from any lender and have paid all of your dues on time, you may be eligible for this offer. Furthermore, under pre-approved loans, since the lender already has your information saved in the database, crucial documents required for a bike loan acceptance are kept to a minimum.
 

• Cost of Accessories

Before you check the list of documents required for a bike purchase on loan, you must know that your bike loan covers the cost of additional accessories that you purchase at the time of purchasing a new bike? If not, bear in mind that whether you are purchasing a trendy seat cover or adding a basket to the front of your scooter, the loan will cover the cost.
 
ALSO READ: 6 Benefits of Two-Wheeler Loans That Make Your Life Easy

Now let us look at the main two-wheeler documents you must put together for funding your dream vehicle.

Documents required for a two-wheeler loan

1. Application Form

You need to first apply for a loan for it to get approved. The process of documentation will begin after you apply for the loan. Thorough verification of your credentials will be done. The lender will see your credit history but your eligibility for the loan will also heavily depend on the documents you submit to verify your background.  
 

1. KYC Documents

• Identity and address proof

Identity and address proof documents are a non-negotiable part of the documentation process as the lender has to be sure that you are a genuine person making an honest loan request. As proof, any government document such as your driving licence, Aadhaar card, passport, voting card, ration card, pan card or any other card should be furnished. These documents should tell your name, address and should have your photo on them.
 

1. Income Proof

• Bank statement and salary proof

You also need to submit your income proof such as salary slips in case you are a salaried employee and bank statements in case you are a business owner. These are proof of your steady income and assure the lender that you will be able to repay the loan.
 

1. Passport Sized Photo

You need to submit your recently-clicked photos as identity proof. The photos can be used as a reference in case of any future requirements.
 
ALSO READ: A Step-By-Step Guide to Getting Your Two-Wheeler Loan Application Approved
 
In India, the market size of two-wheelers is quite huge. New and advanced models of two-wheelers are entering the market every day and their demand is not dwindling by any measure. To make sure everyone can afford a bike, capital lenders keep offering attractive interest rates, among other benefits. To make the right choice, the customer should be well-informed about the terms and conditions so that they do not feel cheated at any point in time. Once approved, then paying the EMIs before the deadline will improve the credit score and make for a strong case for future loan applications.

Disclaimer: This post was first published on 11 January 2019 and has been updated for the latest information, freshness and accuracy.