(NOTE: – Before applying for a loan, you should know what your budget is and what kind of plan would be best for you.)
We want to own a car, be it a car or a two-wheeler. However, not everyone has enough cash to go and buy a bike in one go and settle it. So the best solution for this is to take a loan. With the passage of time, getting a loan for a bike is no longer difficult. Depending on your credit history, you get a loan of up to 85 per cent of the cost of the bike and in some places up to 90-95 per cent. This can help you buy a bike easily, and then repay the loan in affordable EMIs (equated monthly installments). But choosing the best bike loan for you is not an easy task. A lot of research is needed before choosing a loan that best suits your needs.
Loan tenure, interest rate, repayment terms etc. are important issues that any borrower should consider before finalizing the deal. You also need to meet a set of specific criteria to avail a bike loan, which generally differs from one lender to another. However, some basic criteria are common to most companies which are:
# Employment Status: The borrower can be salaried and self-employed. If they want to take loan then they have to provide relevant proof of employment or source of income.
# Salary: At least six months of employment and salary credit proof commensurate with the stipulated time period, to be submitted to the lender at the time of applying for the bike loan.
# Proof of Identity: Proof of identity and address are mandatory requirements while applying for the loan.
Now that you know what the loan requirements are, let’s see how you can apply.
- Know Your Budget
Before applying for a loan, you should know what your budget is and what kind of repayment plan would be best for you. Understand the loan scheme very carefully.
Fill Loan Application Form
Once you have decided on the right loan for you, fill in your application with all the relevant details that will help the lending company determine your creditworthiness. Fill the application form correctly with accurate facts otherwise your loan may be rejected later.
- Submit The Required Documents
Submit your KYC documents. Make sure that all the details are accurate and updated to ensure that there is no problem with the lending company.
- Understand Loan Terms
When your loan is approved, you will receive a sanction letter from the lending company along with the legal contract. This agreement shall cover all the terms and conditions relating to the loan except the interest rate, loan tenure etc. It is important to understand each and every point in the agreement thoroughly and ensure that you follow the repayment rules to avoid getting penalized.
- Sign Loan Agreement
After this the only thing left to do is to sign the loan agreement. After this you will get the prescribed amount in the bank account.