Two Wheeler Loans In India: Eligibility, Documents Needed & Benefits
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28 March 2022Two-wheelers are perfect for an easier and faster commute. However, their cost ranges between Rs.50,000 and 2-5 lakhs depending on the model. If you don’t have sufficient savings to fund your two-wheeler purchase, a loan can be of great help. This post tells you what a two-wheeler loan is, its features, benefits and other details. Read on!
Table of contents
- What is a Two-Wheeler Loan?
- Two-Wheeler Loan Eligibility
- Documents Required for Two Wheeler Loans
- How to Increase the Chances of Getting a Bike Loan?
- Do’s & Don’ts of Two-Wheeler Loan Application
- Features & Benefits of Loans for Two-Wheelers at Navi
- How to Apply for a Loan at Navi for a Two-Wheeler?
- Final Word
- FAQs on Two-Wheeler Loan
What is a Two-Wheeler Loan?
A two-wheeler loan is a borrowed amount used for a bike purchase. It is a type of personal loan to buy a bike of your choice. Depending on your credit score, your loan for the bike would be approved at a certain rate of interest. To get a personal loan to buy a bike, install the Navi app on Android or iOS now!
Two-Wheeler Loan Eligibility
| Age | You should be between 18 and 65 years of age to avail of the loan. The minimum age can also be increased to 21, 23 or 25 years in some cases |
| Interest Rate | The 2 wheeler loan rate depends on your eligibility parameter and the lender pricing policies |
| Credit Score | Your credit score should be at least 650 to apply for the loan. If your score is below 650, the loan application might get rejected |
| Employment | You should either be salaried or self-employed |
| Income Level | There is a minimum income which you should earn every month to qualify for the loan. The level varies across lenders |
Also read: How to improve your credit card score: 11 guaranteed ways
There are no specific criteria for Navi’s personal loans. Navi uses a technology-driven model to check the details and approve your loan.
Documents Required for Two Wheeler Loans
Generally, you would have to submit the following documents to apply for a two-wheeler loan:
- Identity Proof: Aadhaar Card, PAN Card, passport, Voter’s ID card, etc.
- Address Proof: Aadhaar card, utility bills, passport, Voter’s ID card, etc.
- Age Proof: Aadhaar Card, PAN Card, passport, Voter’s ID card, etc.
- Bank Statement: Last 3 or 6 months
- Your recent photographs
How to Increase the Chances of Getting a Bike Loan?
Here’s a list of key points to keep in mind to increase the chances of getting a two-wheeler loan:
- Loan Amount – The first step to getting a two-wheeler loan is to estimate the amount you need to borrow. Do your research, and check out the prices of the bike/two-wheeler models that you like to understand the minimum and maximum amount you need.
- EMI Payment – Next, know the EMI amount you need to pay every month. Check your income, expenses and savings per month to see if you will be able to repay EMIs. Here’s how to calculate EMIs for a personal loan.
- CIBIL Score – CIBIL or credit score helps determine if a lender will approve your loan. If you have a CIBIL score above 750, your loan will get approved quickly. Monthly payment of your existing loans, not exceeding 50% of your credit limit and limiting your borrowing from multiple lenders will help improve your CIBIL score.
- Co-Applicant or Guarantor – If you do not have a credit card or your credit score is low, you can get a co-applicant or a guarantor to get loan approval.
Also read: How to apply for a second-hand two-wheeler personal loan
Do’s & Don’ts of Two-Wheeler Loan Application
| Do’s | Don’ts |
| Check your eligibility criteria before applying. | Do not apply for personal loans from multiple lenders. |
| Research to find the best lender who provides the lowest interest rates. | Do not set an EMI amount that you cannot repay every month. |
| Check your credit score. Improve it if necessary. | Do not avoid reading the loan document carefully to know all the terms and conditions. |
| Get a co-applicant or guarantor if your credit score is low or if you don’t have a credit card. | Do not borrow more than you need. |
| Go for banks and NBFCs that provide flexible EMI options. | Do not delay your EMI repayments. |
Features & Benefits of Loans for Two-Wheelers at Navi
Features
- You can avail of bike loans ranging from Rs.10,000 to Rs.5 lakhs through the Navi app.
- Generally, in order to avail of a loan, you need to be employed in a job or have your own business and a source of income to avail of the loan. However, there are no fixed criteria for loans at Navi. A technology-driven process is followed to approve your loan.
- You need an Aadhaar card and PAN card to apply for the loan – All you need to do is to enter your identification details.
- As part of the KYC verification process, you just need to click your selfie and upload it on the app as a valid identity proof
- Navi allows you flexible repayment tenures which can be up to 36 months. You can, therefore, choose a tenure depending on your convenience.
Benefits
- Generally, loans are issued simply based on your occupation, age and income. There are no complicated eligibility parameters for availing of a loan.
- Navi offers an EMI calculator within the Navi App. You can calculate your monthly EMI or change the calculated EMIs by changing the loan details to arrive at the most suitable amount.
How to Apply for a Loan at Navi for a Two-Wheeler?
Navi is an online mobile application which allows you to apply for bike loans at the lowest interest rates. Here are the steps to get a personal loan from Navi to buy your two-wheeler:
- Download and install the Navi app on Android or iOS on your mobile phone.
- Register on the application by entering your mobile number.
- An OTP would be sent which should be entered to verify your mobile number and proceed with the loan application.
- On the home page, click on ‘Apply’.
- Provide your basic details to proceed with the application. These details include your full name (same as your PAN Card), age, marital status and the PIN Code of your residential area.
- Provide your employment and income details on the next page.
- Enter your PAN Card number on the next page.
- Your loan application would be instantly processed and Navi would check your eligibility in order to approve the loan.
- After the loan approval, add your Bank details and complete the KYC process.
- The loan amount will be credited to your bank account instantly.
Final Word
Taking a loan to buy a two-wheeler is a smart decision. It will not only help you to commute faster and cheaper but also give you a sense of freedom. Check your eligibility criteria, and credit score and keep the documents ready before applying for a loan. To apply for a loan for a two-wheeler purchase at Navi, install the app on Android or iOS now!
Also read: What are pre-approved loans: Check eligibility and process
FAQs on Two-Wheeler Loan
Yes, personal loans for buying two-wheelers can be availed for up to Rs.5 lakhs through Navi. So, if you want to buy a bike costing Rs.1 lakh, you can avail of a loan of up to Rs.1 lakh for the same.
The processing fee of personal loans for two-wheelers may go up 1.5%. However, a few banks and NBFCs may charge more or less than the aforementioned number. The interest rates range between 9.60% – 17.99% or more.
Yes, many lenders allow two wheeler loans even when you are working as a freelancer. Navi is one such lender which allows you to avail of loans if you are working on a freelance basis.
The maximum tenure depends on the lender from whom you are availing the loan. You can avail yourself of tenures of up to 36 months to pay off the loan from Navi.
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