Bikes have become an essential commodity for everyone in India. Whether it is for daily commute, visiting nearby groceries or for simply taking a road trip to the mountains, a bike can meet your diverse set of requirements. However, purchasing a brand-new bike often becomes the reason of financial stress for a lot of people, as your pocket may not allow you to use all your savings for bringing home a smart and stylish bike of your choice. In such situations, it is highly beneficial to opt for the incredible bike finance facility as there are hundreds of financial institutions available in the market that provide exciting financing options.
All you have to do is select the brand and model of your preference and then look for a reliable lender. However, you must compare various lenders in order to get the loan at a low interest rate and with favourable set of terms and conditions. In fact, to help you smoothly move in the digitally driven atmosphere, the money lenders now carry out the entire process online, and ensure that you get to quickly seek approval for your application. If you are still not sure about how getting your bike financed can benefit you, then here are a few advantages that you can consider.
Advantages of opting for bike finance facility
• Attractive rate of interest – In case of bikes, or all the two-wheelers for that matter, the financial institutions usually charge a low interest rate in order to make it easier for you to pay the monthly instalments. In addition, due to the constantly increasing demand for the two-wheelers, the overall interest rate charged by the banks has decreased significantly. However, the interest rate can get affected due to your income level, credit score and the price of the bike you wish to buy.
• Quick approval – Getting your bike finance application approved has become incredibly quick and efficient these days. All you have to do is visit the website of the financial institution, meet the eligibility criteria, submit all your documents online and then simply sit back, relax and wait for the approval to come. Moreover, in case of any query, you are also provided immediate assistance in the form of a toll-free call.
• Improvement in your CIBIL score – Needless to say, bike loans are much easier to repay than other kinds of loans. And if you are able to pay the entire loan amount, without making any fault in the payment cycle, then you get to easily improve your CIBIL score. In this manner, you also become eligible for taking a larger loan amount required for purchasing home, car or any other asset.
• No prepayment charges – When it comes to getting the bike financed, you may come across a lot of lenders who do not charge any additional fee. This way, if you have excess of funds then you can easily prepay the whole loan amount at your convenience, without paying any additional heavy cost.
Eligibility criteria for getting the bike financed
• You need to be either self-employed or salaried with a regular source of income.
• You must be above 18 years of age while applying for the loan, and 65 at the time of closure of the loan.
• You should have a positive credit score with no fault in the payment history.
• You must be living in the same house for at least one year to reflect residential stability.
Documents required for the approval process
• Salaried employees will be asked to provide salary slips and bank statements of last six months.
• Self-employed employees will be required to offer bank statements of past six months and income tax returns of the last three years.
• You have to submit an identity proof such as passport, Aadhar card, PAN card, driving license, or voter ID.
• You may be asked to provide a proof of permanent residence such as electricity bill, latest landline bill or current bank passbook.
Given the immense amount of convenience and affordability they offer, bikes have become one of the most suitable modes of commute. In fact, purchasing a brand-new bike is no longer a big deal these days as you can easily opt for bike finance facility. You just have to do a thorough research process and compare at least three or four lenders, their services and interest rates in order to make an informed decision.
Also Read – Documents Required for Bike Loan