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11 Jan
  • Editorial Team

As one of the world’s largest two-wheeler market, India has also many customers 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. Paying an EMI is for most people, especially in the urban towns and developed rural areas, 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. This article talks about the entire documentation process with regard to 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 very simple and straightforward. You need to be a working professional and attain an age of 21 years. 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 criteria are 21 to 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 at 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 INR 10000 to INR 100000 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 is 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 will be approved with ease.

Now let us look at the main documents you need to 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 and thorough verification of your credentials is done. The lender, at his/her end, will see your credit history but your eligibility for the loan will also heavily depend on the documents you would 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 proofs, any government document such as your driving license, 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 it.

  1. Income proofs:

  • Bank statement and salary proof

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

  1. Passport size 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.

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 isn’t dwindling by any measure. To make sure everyone can afford a bike, capital lenders keep offering attractive interest rates, among other benefits. In order to make the right choice, the customer should be well-informed about the terms and conditions so that he/she doesn’t 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.

Did You Know


The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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