You can buy your favourite bike easily even if you do not have the entire amount for one-time payment. Apply for a bike loan and repay on instalments over a period of time besides your regular expenses. This is convenient as you can decide on the amount that you would be able to pay as EMI (Equated Monthly Instalments). Whether it is brand-new or old, you can buy a bike on instalment but there may be some limits on bikes that are more than ten years old. Read on to know more about the process of getting a two wheeler loan in Indore and the advantages that they offer.
The advantages of purchasing a bike on loan are:
- You can get loans at attractive interest rates and low EMI values, so that you can repay the loan easily.
- Pay a part of the loan as down payment that you would be comfortable with. This would reduce your future financial burdens.
- You can extend the repayment duration up to four or five years that would lead to lower EMIs.
- A loan for bike on instalment requires very less paperwork and gets processed fast.
- You can use the bike loan calculator to know the rate of interest and exact amount of EMI
The steps to buy a bike on loan includes:
- Loan eligibility check:
After selecting the bike, check the conditions required for getting a loan. Also go through the documents required for bike loan that you would have to submit and arrange for them in advance.
- Calculate the EMI:
Calculate the amount of EMI that you have to pay with the online calculator available on the website of the lenders who finance bike loan. This is crucial because you need to know your expected monthly outgoing before you buy your bike on instalments. You can modify the tenure and loan amount in the calculator to arrive at an EMI that suits your budget.
- Apply for the loan
You may apply for a two wheeler loan in Indore online or offline according to your preference. You have to provide certain details on the basis of which, the lender would approve the loan. Once the loan is approved, you will get to know further details like the date of disbursement, repayment start date, etc.
The documents that you have to submit would vary between different lenders but there are some standard requirements. If you are a salaried individual, submit the following documents for bike loan:
- KYC documents like Passport, Pan Card, Aadhaar Card, etc
- Address proof consisting of Passport/Driving License/Voter ID card /Utility Bill / Aadhaar card/ Bank account or Post Office savings bank account statement. You can submit computerized documents issued by PSU, Pvt Sector, Property or Municipal Tax receipt
- Address proof in the name of your spouse or parents is accepted by lenders
- Passport size photographs
- PAN card
- Salary slips of last three months
- Salary statement for last six months
- Proof of verified signature
- Bike registration certificate
If you are self-employed, you have to submit all the above-mentioned documents except your salary slip and salary statements. Instead of salary documents, submit the following:
- Last two year’s income tax return as income proof
- Income statement for last six months
It is a simple process through which you can buy a bike via a two wheeler loan in Indore. It is convenient if you have difficulty in paying the entire price at one go. Besides, there are other charges, your regular expenses, etc. that you have to maintain every month. Fix the EMI in a way that it would not cause any extra burden during loan repayment. You can do this by stretching the repayment term to reduce the monthly payment amount.