Purchasing a bike is an excellent way to invest your savings. It provides incredible convenience while commuting to measurable distance. Besides, the process of buying a two-wheeler is similar compared to purchasing an asset like a car or real estate house, or even antiques.
Each passing year, the percentage of two-wheelers selling keeps rising. Primarily, the sudden outrage of the COVID-19 pandemic has fuelled the demand for motorbikes in the market. However, purchasing a bike can still be painful for many due to budget constraints. In that case, a bike loan can tear your budget limitation and help you drive your dream into reality.
Since the motorbike industry is in serious business these days, several lender companies offer an incredible bike loan interest rate to the borrowers. Promptly, you do not need to spend your savings to be able to purchase your dream bike. Hence, with a bike loan, you can quickly obtain quality, durability, and greatness at a convenient rate.
What is a bike loan?
Practically, a bike loan or two-wheeler loan helps you shop for a motorbike or scooter that you yearn for a long. It provides you instant money to finance your purchase. Consequently, you need to pay the principal amount summed with a percentage of ROI (rate of interest) through monthly EMIs or installments. Both self-employed / business owners or salaried employed are eligible for a bike loan.
Types of motorbike loans:
However, a motorbike credit is primarily two types –
- Secured loan: In this loan type, a borrower needs to secure any collateral against the loan. It can be home, land, or any valuable assets like gold. Nevertheless, many financing companies have the policy to secure the purchased bike as collateral against the bike loan. So, if you fail to repay the credit amount, the finance company holds legal rights to seize your two-wheeler without any intervention. In that case, you can consider securing any other assets as collateral instead of a newly purchased bike.
- Unsecured loan: You have already taken a guess, right? Well, unsecured loans oppose the secure loan policy. Here, a borrower does not need to put anything as collateral like a secured loan. Yet, these are typically personal loans that a borrower can obtain for any purpose, even to purchase a bike.
Bike loan interest rate by leading lenders in India:
|State Bank of India||16.25% p.a. To 18.00% p.a.|
|Axis Bank||10.80% – 28.30%|
|HDFC Bank||20.90% p.a.|
|Union Bank of India||9.90% to 10.00%|
|Bank of Baroda|
BRLLR + Strategic Premium + 4.00% i.e. 10.80% p.a.
|Punjab Bank of India||8.70% p.a. to 9.55% p.a.|
|UCO Bank||11.70% p.a.|
|Bank of India||7.35% p.a. to 8.55% p.a.|
Grab a bike loan – Why?
Be it your dream bike, superbike, or a budget-friendly two-wheeler — a bike loan is an ideal option to obtain it. You eventually do not require to redeem your savings. Accordingly, you can manage your finances like no other means. Additionally, you are qualified to get 100% of your bike’s road value without pledging any collateral or security.
Alongside, it offers an opportunity to enjoy affordable bike loan interest rates and flexible tenure. Therefore, you can conveniently plan your repayment structure depending on additional needs.
Furthermore, a borrower has to pass the minimum eligibility parameter to purchase a bike loan. Only a good credit score and stable income source are enough to convince your lender to secure the credit. Fortunately, if you maintain higher credit/CIBIL scores, you are expected to experience a more economical interest rate.
Documents required for a bike loan:
Following are some basic documents required for a two-wheeler:
- KYC — PAN card, Voter card, Aadhar card, Passport, driving license
- Residential proof — Utility bill, Gas bill, Electric bill, Driving license, Passport, Phone bill
|Bank statement (last 6months)Form 16Pay-slips (last 3months)Job offer letter||ITR (Last 3years)TDS CertificateCurrent bank statement (last 6months)Sales tax return|
When purchasing a motorbike with finance, do a general preparation before petitioning for the credit. Several lenders in India offer a lucrative bike loan interest rate along with other deals and amenities. So, always ask for a basic quote from every lender and compare the offered deals. And, lastly, settle for the proposal that entertains your pocket best.