Some Essential FAQs On Two-Wheeler Loans

[Rajesh K Das]

If you live in a city with inadequate public transports, you may find yourself struggling to travel to and from work. Standing in long queues for buses, trains, and other modes of transports can get exhausting. Some even need to battle with the crowd for a seat. Now, you can quickly resolve this issue. You can buy a bike which moves around the city quickly. Although it may seem an affordable vehicle, it is not.

Some need to take out a two-wheeler loan for becoming the motorcycle owner. Yet, there are several queries and doubts which run across the mind of the users. These FAQs should solve them –

• What is a two-wheeler loan? 

Also referred to as a bike loan, the services offered by lenders makes it possible to buy your motorcycle, be it a scooter or geared bike. The lender finances the vehicle, which you can pay the auto dealer and bring the dream bike home. You can also repay the principal amount by paying small interest rates over specific tenure, which is usually five years. The amount repaid every month is pocket-friendly, called EMIs. 

• How to apply for the loan? 

You can apply for them in two ways – online or by visiting the branch. Under online applications, you must visit the lenders' website, fill the application form, and submit the documents listed on the form. If you are eligible, the lender reaches out to you, and the loan gets processed in a jiffy. If you visit the lender's office, the representative helps with the application process. 

• What are the documents needed for a bike loan? 

A two-wheeler loan generally requires minimal documentation. You only need to submit necessary documents like ID proofs, address proofs, income, and employment proofs for getting the loan approved. Many lenders ask for driving license as the acceptable paper as it serves as both ID and address proof. It also shows you have the driving license for riding the motorcycle. 

• How much loan amount do you get under two-wheeler loans? 

Many lenders offer a loan-to-value ratio of up to 90 per cent as a bike loan. You need to pay the balance five to 10 per cent amount of the actual value of the two-wheeler as a down payment. A few lenders today offer up to 100 per cent finance of the on-road price. 

• Can you prepay the entire outstanding debt? 

Most lenders allow prepayment of the entire outstanding amount. However, this is possible if you complete a minimum six months to a year of tenure. But it depends on the loan agreement. You could check if will get charged a prepayment penalty.