Owning a two-wheeler not only provides you with an easy getaway from busy roads in no time. But it also comes with many other benefits like lesser parking hassle and cost-effective vehicle management. Having a two-wheeler as your and your family’s commute comrade helps you save money and time. If you know the benefits of a two-wheeler, and if your current financial stature is refraining from owning one, then don’t worry. We got you covered. A two-wheeler loan, a personal loan, or an instant loan to manage your two-wheeler availing expenses can be a great option.
The availability, affordability, and accessibility of two-wheeler loans are increasing nationwide. Hence that’s when finding the right lender can be daunting, but more so than if you’re looking to borrow money. And we are here to save you time from this daunting process with Buddy Loan. Buddy Loan is the country’s most trusted third-party loan aggregator, where you can apply for a personal loan online and get your loan amount disbursed within 24 hours. But what documents are required for a two-wheeler loan to get a quick disbursement of the loan amount? That’s what this article will answer. Read on if you want details on how much they charge, their eligibility criteria, and other factors that may impact your decision.
What Are The Documents Required For Two – Wheeler Loans?
Submitting the right set of documents and on time can save you a ton of time and increase your loan eligibility to get an instant two-wheeler loan. You do not have to waste your time looking around for your documents at the last minute as banks and NBFC might require time to process your documents. The documents that you provide play a very major role as they are most relevant to assess your eligibility for loan repayment. Hence, this section will inform you about what are the documents required for two-wheeler loans. So, here are the documents required for bike loans, and two-wheeler loans as a whole.
Required Documents For Two Wheeler Loan:
Two Wheeler Loan for salaried person:
- ID Proof: Passport /Photo credit Card/Pan Card /Driver’s License /Voter’s ID/Aadhaar Card/ Identity card with applicant’s photograph issued by Central/ State Government Departments, PSU.
- Two recent passport-size photographs
- Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. / Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
- Last 3 month’s salary slips/ Form 16/Latest ITR
- Last 3 month’s bank statement is mandatory
Two Wheeler For Self Employed:
- ID Proof: Passport /Pan Card/Driver’s License/Voter’s ID/Aadhaar Card
- Two recent passport size photographs
- Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. (All banks except corporation bank)/ Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
- Latest Income Tax Return (ITR)
- Last 3 month’s bank statement is mandatory
Also, if you are planning to avail bike loans specifically here are the documents required for bike loans .
Documents Required For Bike Loan:
For Salaried Employees:
You should keep the following bike loan documents handy if you’re a salaried employee applying for a two-wheeler loan.
ID Proof –
This can be the applicant’s Aadhaar Card, PAN Card, Voter ID Card, passport, driver’s license or any other photo identity card sanctioned by the State/Central Government/PSU. The list of ID proof documents required for a 2-wheeler also includes two recent passport-size photographs.
Address Proof –
The document can be the applicant’s Aadhaar Card, PAN Card, Voter ID Card, passport, driver’s license, electricity or water bills or municipal tax receipts.
Income Proof –
Salary slips from the last 6 months, bank statement for the last 6 months, Form 16 or latest ITR. Some lenders may also require a duly signed and stamped salary certificate from your employer as a valid income-proof document for a bike loan.
Employment Proof –
A copy of your current job’s offer letter is also included in the list of documents required for a bike loan.
Duly Filled Loan Application Form –
You will have to submit these documents with the carefully filled and signed loan application form.
For Self-Employed Individuals:
The list of bike loan documents is a little different for self-employed persons. Thus, if you’re a doctor, lawyer or businessman, here’s the list of bike finance documents you’ll require for a two-wheeler loan application.
ID Proof –
This can be the applicant’s Aadhaar Card, PAN Card, Voter ID Card, passport, driver’s license or any other photo identity card sanctioned by the State/Central Government/PSU. You will also need to submit two passport-size photographs for photo-identity verification.
Address Proof –
Either the applicant’s Aadhaar Card, PAN Card, Voter ID Card, passport, driver’s license, electricity or water bills, or property or municipal tax receipts can be used as valid address proof.
Income Proof –
Bank statements for the last 6 months and most recent Income Tax Return (ITR) documents.
Employment Proof – TDS certificate.
Company Address Proof –
Either maintenance bill, electricity bill, SME registration certificate, rent agreement or property documents.
Existence of Business Proof –
The company/business registration certificate, tax registration documents or any other document proving the establishment of the shop will suffice.
Duly Filled Application Form –
All these documents have to be furnished along with the carefully filled loan application form.
Now that you know how you can have an idea about documents required for bike loans . Read further to be informed about the motor vehicle act.
Documents For Motor Vehicle Act:
In 1988, the Motor Vehicle Act came into existence. The Motor Vehicle Act is important as it regulates and governs the traffic, motor vehicles, no-fault liability provisions and insurance for motor vehicles. The revised act in 2019 passed the parliament upon the request from the Group of Transport minister of states.
Cases registered were under the jurisdiction of the state and the central for violating traffic rules, drunken driving, driving without a license, over-speeding, dangerous driving.
The new MV act states, the penalisation charges Rs. 2000/- and above for an individual and imprisonment charges with fees Rs. 3000/-, if the punishment exceeds. This is the case if the individual rides a non-licensed vehicle. Do not be careless and misuse of the motor vehicle against the motor vehicle act.
Online Loan Documents:
Today, loan approvals are online and quick. It only takes a few minutes to evaluate your profile and tick the personal loan eligibility criteria for you.
Download the Buddy Loan app, fill in the primary details. As the dashboard and then to the “upload document” section. On submitting your e-application, in 15 minutes you will receive your acknowledgement.
Importance of Documents:
By now, we already know that the RTO registered belongs to the individual under his/her name. The individual who purchases the bike will have the respective bikes registered under them.
The law states. ” if you purchase the vehicle, the vehicle is subject to registration to address the legality and the ownership concerns”. The RTO (Regional Transport Office) registers your vehicle by issuing it with a new number under the state with documents. There are people who have come up with fake licenses and this is the very reason you must register with the RTO to avoid fake records of registration.
There are many e-bike businesses on the rise in busy cities like Mumbai, Bangalore, Delhi, etc. This is enough to protect your vehicle from theft, or in case the two-wheeler goes missing. The reasons are many. By holding your proper set of documents, you could retrieve your bike in the above situations.
Seizing your bikes for violating the traffic rules and regulations is by law. Even in this case, you will need your documents to release your bike from the clutches of the traffic police.
The Validity of Motor Vehicle Documents:
In recent times, private driving license is valid for 20 years from the date of issue or till the holder attains 40 years of age. After the age of 40 the Driving licence will be issued for 10 years & then 5 years.
The pandemic is increasing in several states; the documents are subject to validation during and after the lockdown. The nationwide lockdown has hit us hard, there is no way people can travel and renew for fresh documents. This led to the ministry of road transport and highways to issue the gazette notification. It includes the relaxation of the additional fees under Rule 32 of Central Motor Vehicles Rules.
Eligibility Criteria For Two Wheeler Loan
Lenders have certain eligibility criteria they expect you to fulfill before they process your application. These may vary from one lender to another. Some of the general eligibility criteria are as follows:
|Requirements||Salaried Individuals||Self-employed individuals|
|Age||Minimum – 21 years at the time of application
Maximum – 65 to 70 years at the end of the loan tenure
|Minimum – 21 years at the time of application
Maximum – 65 to 70 years at the end of the loan tenure
|Credit score||Above 750||Above 750|
|Loan amount||Up to 100% of the value of the vehicle||Up to 100% of the value of the vehicle|
|Residential stability||Must be staying at the current address for at least 1 year||Must be staying at the current address for at least 1 year|
|Work experience||At least 1 year||At least 1 year|
Tips for a Successful Two-Wheeler Loan Application Procedure.
Lenders have rejected many applications with a pleasant feeling and might not be equally good for your credit score. So, you can refrain such rejection by following the tips for a successful two – wheeler application procedure. Referring to the list of tips will enable you to apply successfully for a two-wheeler loan. Also, then you can follow the next section that talks about crucial points you can remember.
These are as follows:
The Loan Fund :
Assessing your needs and calculating exactly how much loan fund you want you to buy the two – wheeler you want. Doing this you can refrain from applying for an amount that is larger than what you need.
Eligibility and Comparing Options:
After you have decided how much fund you need to borrow, you should take a look at all the loan options that are available and you are equally eligible for. Refrain from applying for any loan that you don’t qualify for. Also ,while checking your eligibility for a two-wheeler loan you should also ensure that you fulfill all the criteria.
Monitoring Credit Score:
Your credit score is another most important factor that determines your loan approval status . Also, lenders can reject applications on the basis of low credit ratings. Also, if your credit history is poor, you should look at improving it before applying for the loan. Hence, you should not apply for a two – wheeler loan without CIBIL monitoring.
Getting a Guarantor:
Having a guarantor or co-applicant with a good credit can only help you get the loan amount you actually want.
Providing All The Needed Documents:
As discussed earlier, in the article the documents required for two – wheeler loan should be provided in order to get approval for the same. If you don’t submit the required papers, there is a higher chance that the lender might reject your loan application.
Applying For Your Existing Lender:
If you are in a good stead with the bank, then you should try availing a loan from them. And a good standing is also very helpful when you get a loan even if you haven’t fulfilled the requirements.
Crucial Tips You Should Remember Before Getting a Two Wheeler Loan
After you have successfully applied for a two-wheeler loan, let’s understand what you need to keep in mind while applying for one. Here are some points that can help you find the correct loan for you to avoid paying for more than you should.
This is the most initial step before you can apply for a motorbike loan. Make sure you do your research well. Comparing all the options that various lenders are offering to you. Comparing interest rates,repayment options, processing fees, and other loan terms. This will enable you to find the best and cheapest option.
Wisely Choosing Your Tenure:
The tenure of your loan will decide how much you can repay each month. Make sure that the EMI is affordable for you . That means you have to be wise about selecting the correct tenure. A shorter tenure will enable you to process the loan repayment faster. However, you should remember that the EMIs will be high. Hence, selecting the tenure according to how much you can afford to pay off every month without any sudden financial crunch.
An Affordable Interest Rate:
Your interest rate decides your overall cost of your loan. This will also have an impact on your EMI. Selecting your loan with a lower rate of interest can enable you to keep your EMIs low as well. Also it will make your loan way cheaper.
Analyzing Floating Rates With Fixed Interest Rates:
Some lenders offer you both floating interest rates with fixed interest rates. But floating rates change as per the transition in the market rates. Whereas fixed rates stay static irrespective of your market rate changes. That’s why floating rates are usually lower than fixed rates.
Check EMIs Before Applying:
While comparing your loan options, ensure that you compare the respective EMIs as well. Also choosing a loan that provides you with an affordable EMI with a convenient and flexible repayment period.
Ask About Prepayment Fees:
Planning on prepaying or foreclosing your two-wheeler loan at any point, helps you find out the charges for the same. Some lenders may also end up charging you a fee for this while others might not. Prepaying your loan can enable you to save interest costs.
Read The Terms And Conditions Properly:
Reading your loan offer document properly and going through every single term and condition before you sign it is necessary. A fine print may reveal hidden charges and fees that can otherwise never be mentioned. Hence, knowing these terms can help you avoid paying heavy penalties.
However, under certain circumstances ,if you are not able to avail a two-wheeler loan , then you can definitely avail personal loan to manage your two-wheeler loan expenses.
Hence, following the article should help you get various factors to enhance your eligibility for availing a two-wheeler loan. Availability of the correct set of documents is the best way to get an instant two -wheeler loan.