Second Hand Bike Loan

Getting one's own bike is generally on the to-do list of many individuals. Some can afford a new bike, but it may be out of budget for some. Purchasing used bikes on loan is a very good option for such people. The price of these second hand bikes is almost half. So you can gather some amount yourself and apply for a loan for the rest.

Some of the main features of a second-hand bike loan are -

• Amount

The average loan amount offered by lenders is about Rs. 10 Lakhs. The amount of the loan also differs depending on the vehicle price, tenure, etc.

• Rate of Interest

The second-hand bike loan financers offer low-interest rates which differ from lender to lender. Therefore it is important to research well before choosing the lender for second-hand bike loans.

• Tenure 

The maximum repayment tenure available in India for second-hand bike loans is up to 5 years.

• Age

The minimum and maximum age required for application are generally 21 and 65 years, respectively. However, there are few lenders that have a minimum age limit of 18 years.

• Income

An individual applying for a second-hand bike loan should have a minimum monthly income requirement ranging between Rs. 12,000 - 18,000.

• Fee

After your loan application is accepted, you might have to pay some amount to the lender as a processing fee. Though some lenders don’t charge a processing fee on loans for second-hand two wheelers, others can charge you around ₹1,000.

• Pre-closure

If you're planning to repay your second-hand bike loan amount before the tenure is completed, read the pre-closure charges mentioned in the contract.

There are many important points one must know before they apply for a second-hand bike loan. Some of the major points are:

• Budget

Be clear about the amount of the loan and then apply. The EMI value should stay within your monthly budget and should not go overboard.

• Credit Score

It is important to maintain a good credit score value as it makes it easy for you to get a second-hand bike loan. The reviewers generally reject applicants with low credit scores.

• Compare First

Many banks/lenders offer second-hand bike loan finance. It is better to research and compare various factors like interest rates, other benefits, tenure, etc., of all such lenders/banks before making a choice.

• Trustworthy Lender

Make sure you choose a trustworthy lender offering a good deal with low interest on the amount. It is advised to apply for a loan from a bank where you already have an account, as banks offer loans at a low rate of interest to the existing customers.

• Go Digital

Online application is always more easy and free from hassle. It saves your time, energy and also gives you digital access to all the important documents.

With the growing needs and requirements of people for services, almost every institution/bank offers the facility of online as well as offline applications for second hand bike loan. The process via both modes is easy and convenient.

 

1. Offline Mode

The steps of offline application for second-hand bike loan finance -

• Choose the bank you want for financing your vehicle.

• Go to the nearest branch of the chosen bank.

• Inquire about the application form, fill it and submit it with all required documents.

• The bank executive will guide you through the process.

 

2. Online Mode

The steps of online application for second-hand bike loan finance -

• Choose the bank you want for financing your vehicle.

• Go to the official website of the bank.

• Enter all required details in the application form.

• Submit the form with supporting documents.

• After you apply, the reviewer will verify the details. If all the details filled in are correct, your second-hand bike loan application will be accepted.

It is very important to have complete knowledge about the documentation process of any loan as documentation plays a very crucial role in the acceptance/rejection of the loan. The documentation process for second-hand bike loans is very simple and basic. It includes -

• Identity Proof -

PAN card, Voter ID, Aadhaar card

• Address Proof -

Passport, Aadhaar card, Utility bills

• Age Proof -

Aadhaar card, Birth certificate, Driving License

• Income Proof -

Bank statements, Salary slips, Form 16

• Two wheeler vehicle quotation

• Passport-size Photographs