How To Take Bike Loan?
You must have heard about bike loan. Many people who do not have enough money to pay the full cost of the bike in one go. Often they take bikes on loan. After which he keeps paying his installments for one or two years. But many people are still afraid of taking a bike loan. They feel that they don’t know what will be done with us if we fail to repay the loan.
So if you too are thinking of taking a bike loan. So read this post of ours till the end. In this post, we will tell you what is a bike loan? How can we get it? Where is the lowest cost of taking a bike loan?
What is bike loan?
Before we give you information about Two Wheeler Loan, let us tell you once what is a bike loan. Actually, it is a kind of loan. Just like we take home loan, education loan, similarly bike loan is also available. Its special thing is that you do not have to submit many documents etc. Also, you do not have to pledge anything. Bike loan is easily given on the basis that your track record is correct. Also, its process also ends in just one day.
Is it right to take a bike loan?
Even today many people in our country are afraid of taking a bike loan. Because they think that if they fail to repay the loan, the finance company will take them away. Due to which money will sink, along with it defamation will be from above. But let us tell you that if you really want to repay the loan, then this will never happen to you. Because the rules and regulations of the company are also made by human beings. In such a situation, if there is a sudden problem in your home, then you can inform the company about this and get the loan repayment deadline further extended.
But still our suggestion will be that you should take bike loan only then. When you feel that you do not have enough money to pay the price of the bike at this time. But your income is such that you can easily pay the installment of bike loan every month. But if you have full money to pay the price of the bike, then you should never take the bike on loan. This will always cost you dearly.
How to take bike loan?
Next, we are going to give you all the information related to bike loan in a sequential manner. Which includes eligibility, required documents, interest rate and loan repayment time limit. All these information related to bike loan are very important.
bike loan eligibility
You are a citizen of India.
At the time of application, your age should be more than 21 years, as well as many companies do not give loan if you are more than 65 years.
The city from where you are taking the bike loan. You must have lived there for at least one year.
If you are working in a company, you must have been working there for more than six months.
If you do business. So one year has passed.
Documents required for taking bike loan
Your Rent Agreement, Telephone Bill, Electricity Bill, Gas Connection Bill or Ration Card for residence.
PAN card of the borrower
Salary slips of the last six months for salaried people, as well as income tax related slip or bank passbook statement for business people are also sought.
Apart from this, other documents depend on your finance company.
How to take bike loan from showroom?
If you want to buy a bike from a showroom, then first of all take the bike you want in some showroom near you. Find out its On Road Price. After this you find out what will be his total cost on the loan. Also ask the names of the finance companies in the showroom whose facilities are available in their showroom. After this, whichever showroom you find the lowest price, go there with your documents and take your bike. But before going to get the bike, you must ask about the documents once there.
How to take bike loan from bank?
If you want to take a loan from a bank instead of taking a bike loan from a showroom, then you can also take a bike loan from a bank. For this, the bank from which you want to take a loan. Go there with all the documents mentioned by us. The representative from the bank there will explain the whole process to you. After this, you can easily take a bike loan from the bank as well.
The difference in taking a loan from the bank is that you have to complete the entire process of taking the loan yourself. Also, its advantage is that you will always get bike loan in the bank at 7 to 8 percent. While the finance company charges you 10 to 12 percent interest many times. But the bank process is a bit long.
How much can I get a bike loan?
If you are going to take a bike loan, then it is very important for you to know that how much bike loan you can get on a bike. Also, the initial cost of the bike you may have to pay. The answer is that you can get a loan of 75 to 85 percent of the cost of your bike. Means you will have to pay about 20 thousand rupees in cash on a bike worth 1 lakh. This ratio largely depends on the finance company as well.
Here let us tell you one more thing that bike loan of less than 20 thousand rupees is not given. Also, a maximum loan of around 2 lakh can be given. Apart from this, if you take a loan from the bank and have your own house or farm, then you can get up to 100 percent bike loan from the bank.
Bike loan interest rate?
You have two options for taking a bike loan. The first option is to get EMI done from a private finance company directly from the showroom. If you get this loan done, then you may have to pay up to 10 percent interest. But if you go with another alternative bank, you may see a slight reduction in the interest rates. Banks usually charge only 7 to 8 percent interest. Also, if you take a large amount of loan and loan for a long time. So banks give you even more benefits.
Loan repayment deadline?
You always have to repay the bike loan in installments. For this, when you go to buy a bike, the showroom or bank people ask you how many installments you can pay in a month. The time limit for repaying the loan is decided on the basis of your installment.
If we talk about this time limit, then generally companies give you minimum time of 1 year and maximum time of 3 years. The longer you keep the loan repayment period, the more interest you will have to pay on the loan. The special thing is that you have to decide the time period for repaying the loan at the time of taking the bike. It cannot be changed midway.
What will happen if the loan is not repaid?
If you take a bike on loan, you do not own it outright until you repay the loan. You can find out about this by looking at the RC of the bike. There you will see the name of that company written. The company from which you would have taken the bike loan. This means that you will not be the outright owner of the bike until you have repaid the bike loan in full.
The special thing about bike loan is that while taking it, nothing is asked from you as a guarantee. Means you have taken a bike and you have not repaid the loan in time, then the people of the company will confiscate your bike and you cannot even say anything to them. Because until you repay the bike loan in full, the ownership of that bike will be with that finance company only.
some things to keep in mind
When you take a bike loan, you must collect information about the interest rate, installment and time period of the loan. So that you don’t have further trouble.
Before taking a bike loan, you should also ask the showroom or bank owner that if you are unable to deposit the installment in a month, then how much will you be charged for it.
Whenever you take a bike on loan. So think carefully about which bike you want. Because you cannot sell it without paying the full loan. Because till then its ownership will be with your finance company.
If you had taken a loan earlier and did not repay it, then your Cibil Score gets spoiled. Due to which it is possible that you may not even be given a bike loan.
If there is no runner at your home. So always get the EMI of the bike fixed from the showroom itself. It is often seen in the bank that a lot of time and rounds have to be spent.
When you go to buy the bike, take your ATM with you from which you want to pay the installment. After this, every month the installment will automatically be deducted from your account.
While giving bike loan, you must ask Hidden Charges. It should not happen that if you are informed about this later, then you will have trouble in repaying the loan.
Benefits of taking a bike loan
With the help of a bike loan, you do not have to pay the cost of the entire bike in one go. Due to which there is no financial burden on you.
Many times offers like ‘Zero Down Payment’ come for bike loan. In which you are given the bike of your choice without any initial payment.
Approval of bike loan is also done online in today’s time or in just a few hours. With which you can take home the new bike in just one day.
If you get a loan from a showroom, then all the paperwork for your loan is done by the showroom itself. Which saves you a lot of time.
Hope now you have understood how to take Two Wheeler Loan. How can you apply for this? Also, what is the benefit of taking it. If you liked this article of ours related to bike loan, then do share it with your friends as well. So that those people can also know how to take bike loan. Also, if you have any question or suggestion related to this article then write in the comment box below.