Bike Loan or Two Wheeler Loan is an evergreen category of loan. A Bike or Two Wheeler or Scooty or Scooter whatever you call it, It the craze and passion of today’s youngsters. Especially when you buy it the first time, you are feeling to be on the top of the world. Here comes the question, how to buy a bike. You may purchase it in full down payment or on installments. If you could not make full down payment then you may go for installment option. There are many banks and NBFC of public and private sector to finance your bike loan or two wheeler loan. Here, we have listed all required details for your ready reference.
What is a Two Wheeler Loan
When you avail a loan to purchase a two-wheeler, it is known as two wheeler loan. Your motorcycle, bike, scooter, scooty all come under this category. Public sector banks, private sector banks, and non-banking companies all deal with this loan. This is a very common type of loan. As the loan amount(Average Rs. 20,000 to Rs. 1,00,000/-) is smaller so customer base of this loan is largest among all loans. The loan works on a flat interest rate for the entire loan period.
What is the process of this loan
- First of all, you have to choose your desired two-wheeler model
- Then, inform the salesman of showroom that you want this bike or scooty on finance
- The salesman will take you to the finance company representative or bank loan agent who is already at the showroom
- The loan agent will explain you the loan amount, rate of interest, EMI amount, loan period and repayment term and conditions
- You have to submit you KYC document, income proof, ITR return, Bank Statement as documents required for the loan approval
- Upon checking your CIBIL score, the bank or finance company will approve your loan and disburse the loan amount to two wheeler company
When these document formalities and down payment is done, you can take your bike or two wheeler home.