How To Avail Second-Hand Bike Loan In India?
New Delhi : Buying a bike can be an expensive venture. Be it a brand new model or a used two-wheeler, the cost of purchasing a two-wheeler is quite huge. If you are looking for a way to finance your second-hand bike purchase, consider getting a bike loan.
What is a Second-Hand Bike Loan?
You can get a loan when purchasing a two-wheeler whether the bike is brand-new or used. Financial institutions on average usually offer ₹10 Lakhs as loans to customers looking to buy a second-hand bike on loan. Some lenders may offer a higher amount on the basis of your eligibility and requirements.
Typically for such loans, you are offered repayment tenures of up to 5 years in India. It is essential to check the interest rate and other loan terms provided by lenders, prior to choosing a loan offer. Furthermore, you can also use a bike loan EMI calculator and estimate your loan costs to plan your finances efficiently. You can fund up to 100% of the purchase with the help of a second-hand bike loan.
Eligibility Criteria For a Used Bike Loan
Here are some of the criteria most lenders need you to follow in order to provide you with a used bike loan.
1. Age
Generally, if you fall under the age bracket of 21 to 65 years, you are eligible to get a used bike loan. However, the age limit may vary from one lender to another.
2. Income
Your monthly earnings play a crucial role in helping the lender estimate your repayment capabilities. Thus a great way to ensure that you get the loan is to have a stable income and good employment history.
3. Credit Score
Lenders always take into consideration your credit score prior to making a loan offer. This is because your credit score is a strong indicator of your creditworthiness. Maintain a good credit score, preferably 750 and above, to get a second-hand bike loan at favourable terms.
Ascertain Your Loan Costs
Prior to applying for a used bike loan, it is important to have a rough estimate of your aggregate repayment costs. This helps you budget better and plan your finances accordingly. For this, it is crucial to note the various charges involved in getting a used bike loan and how these impact your repayment payouts.
1. Interest Rates
Like all other loans, it is essential to note the interest rate charged on the amount you borrow. This makes up a huge portion of your EMIs and increases the cost of your repayment substantially. Ensure to compare various offers available prior to applying for a used bike loan. You can also use a bike loan EMI calculator to compute the monthly installments easily and estimate your cumulative repayment costs.
2. Processing Charges
Usually, loan providers do not levy any charges on the processing of a used bike loan application. However, some lenders may ask you to pay a small fee of approximately ₹1,000 for the same. No matter how small the cost, a processing fee also adds to your overall loan expenses. Thus, it must be duly considered when applying for such a credit option.
3. Pre-Closure Charges
If you are anticipating receiving a lump sum amount soon that you wish to direct towards your used bike loan, be mindful. Read the fine print of your loan documents and note the prepayment and foreclosure charges. If you are not careful, you might end up paying more via prepayment than you would if you had stuck to the set repayment schedule.
How To Apply for a Second-Hand Bike Loan?
Let us now understand the two ways in which you can apply for a used bike loan. You can either get the loan offline or online, as per your convenience.
1. Offline Mode
● Visit the nearest branch of the lender you wish to get the loan from
● Fill out the application form for a second-hand bike loan
● Submit all the documents as requested
● Official executives will then guide you through the process ahead
2. Online Mode
● Visit the official website of the lender you wish to get the loan from
● Fill out the loan application form online
● Submit the application form along with the required documents
● After a quick verification process, if the details submitted are found to be valid, your application will be accepted
Documents Required
A great way to ensure that your application process is smooth and seamless is to keep the required documents handy. Here is a comprehensive list of the documents you may be asked to present when applying for a second-hand bike loan.
● Identity proof
● Address proof
● Age proof
● Income proof
● Passport-size photographs
● Quotation of the two-wheeler you wish to purchase
Now that you have discovered a great way to finance your next second-hand bike easily, utilise this knowledge. Use a bike loan EMI calculator to estimate costs more easily and plan accordingly. Get started right away and apply for a used bike loan today!
Get the bike you want easily and enjoy the benefits of your two-wheeler, while managing your finances efficiently. Have complete control over your money and plan your budget to suit your requirements with the help of a loan.
