Things You Need To Know Before Applying For A 2 Wheeler Loan During Covid-19


The Covid-19 pandemic has impacted human lives more than ever. Travel has also changed substantially. People are apprehensive about public transport as the fear of infection has made them uncomfortable. Hence the general public who were entirely dependent on public transport is thinking about owning private vehicles based on their buying capacities. Based on the purchase behavioural patterns, experts claim that Indians are more inclined towards two-wheelers than other types of vehicles as they are affordable and go well with the road system of the country. 

A two-wheeler loan is a trouble-free way to fund your choice of motorbike. If you are a salaried or self-employed individual, you can buy a scooter or a motorcycle with a 2-wheeler loan. It helps to buy a two-wheeler at once, without having to think about the full cost. Through equated monthly instalments or EMIs, the loan amount is repaid with interest as applicable. Banks approve the loan based on the two-wheeler and the EMI as agreed. 

Who is eligible for bike finance?

When you apply for a 2 wheeler loan, banks ask for a minimum age of 21 years. You have to complete the repayment phase of the loan before age 60. The financial institutions allow you to repay the loan, if you’re self-employed, before 65 years. At least one year of steady employment is needed before qualifying for the loan. It will benefit the borrower if he/she is staying for a minimum of one year at the current residence. The self-employed borrower should be in the same line of business for at least one year. Before applying for a loan, having a decent CIBIL score of about 700-750 or lesser in some circumstances is important. Most of the eligibility criteria vary across the banks and institutions of finance.

Two-wheeler Loan features:

  • Many financial institutions fund the two-wheeler’s expense up to 90 per cent or 95 per cent. The remaining sum needs to be arranged, and the down payment is made.
  • Banks/NBFCs charge interest rates of 9.5 per cent – 17 per cent per year.
  • The two-wheeler loan must be repaid within five years.
  • Check the processing fees before the bike finance is made available. It varies from 0.25 per cent of the loan amount to – 5 per cent. Financial institutions stipulate a minimum and a maximum fee limit.
  • If you are a current bank/NBFC client, you can avail pre-approved two-wheeler loans.
  • Check to see if your lender has special EMI schemes available for quick repayment.
  • Lending institutions provide female customers with an incredible 0.5 per cent discount.
  • Your financial partner may have a direct tie-up with a dealer.
  • With little paperwork, you can apply for the two-wheeler loan online.

Bike finance tips:

  • To get a lower interest rate, contact the bank/NBFC where you have the account.
  • For the festive season lenders provide additional packages such as free premiums or zero transaction fees.
  • Negotiate a lower rate with the lending institution, if you have a decent credit score.
  • You can use a two-wheeler loan calculator to assess what amount of loan you can afford. Don’t over-borrow or you’ll be unable to pay back the loan.
  • Banks/NBFCs do verify if you are repaying other loans before the two-wheeler loan is approved. During the loan application, you should strive to get rid of a personal loan or credit card debt.
  • To avoid dealing with repayment, take a more extended loan period.
  • When purchasing a vehicle, keep an eye on the insurance and registration costs.
  • Check that your bank lets you prepay the loan without any extra fees. See charges, fines for late payment and so on.

Documentation for 2-wheeler loan

Financial institutions demand the documentation to process your application for a loan. As proof of identity, you must show a self-attested copy of the PAN Card/aadhar card. Address proof would be a self-attested copy of the Passport or Voter ID. Three months of your payslips and bank statements would serve as the financial record. Have a collection of photos of passport size, and remember to fill out the application form and attach the photos to the form. 


Opting for bike finance in the post-pandemic world is a practical situation to counter the travel woes. 


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