Do you want to get a second-hand bike loan?
Are you searching for an efficient way to buy a bike without breaking your budget? Worry not! Used bikes are easy to finance these days.
Old vehicles are sold at a heavily discounted price and fresh ones are bought. It is the most practical choice to travel on two wheels in a country like ours with narrow roads, cracks, and potholes.
The feeling of freedom is enhanced by personal vehicles as your reliance on buses and trains reduces.
When you buy a used bike, you will be able to save money in the long run. Bikes that are used are more reasonable than those that are fresh and new.
You can easily buy a used two-wheeler with a loan online. Pre-owner bike loans have several significant factors to consider, which will be discussed in this article.
How to Apply for Second-Hand Bike Loans?
Things you need to know before applying for a second-hand bike loan:
- Financial lenders check your CIBIL score to determine whether you are suitable to offer a loan or not. A CIBIL score is decided based on your bank transactions, borrowing, and repayment history. So, make sure you maintain a good record and develop a favorable CIBIL score to have a smooth loan process.
- The wrong lender can increase your costs by charging you more for various things. This will increase your EMIs significantly if you miss a payment or in other circumstances.
The lender should have pre-decided terms and conditions. They should have a good reputation in the market. Go for a trustworthy lender.
- It is important to conduct your research before availing of the loan. You should compare the interest rates of different lenders and see which lender is offering the best rates. However, be careful of hidden charges, such as documentation charges, loan processing charges, etc. Go for a trusted lender with the lowest interest rates.
- You want quality service from the lender. You should be able to apply for a loan quickly. Next, select a lender that needs minimum documentation, disburses loans quickly, and is transparent. Remember that taking a used bike loan and repaying is not a one-day process.
You will need a transparent and high-quality service so make sure you get it from the right lender.
- There is an option of paying your loan back earlier than the settled period. You should pre-close your loan to save money as you will have to pay less interest.
Offline Used Bike Loan Application Process:
Step 1: Visit the nearest branch of the chosen bank.
Step 2: Complete and submit the application form along with all necessary documentation.
Step 3: You will be guided through the process by the bank executive.
Online Used Bike Loan Application Process:
Step 1: Get the application form from the official website of the chosen bank.
Step 2: The application form must contain all the required details.
Step 3: Documents supporting the form should be submitted.
Step 4: Your application will be verified by the reviewer after it has been submitted.
Documents Needed for a Used Bike Loan Application:
- Identity proof: You will need to prove your identity. For this, you can show your passport, driver’s license, voter ID card, or PAN card.
- Address verification: The lender will need to verify your address. For this, you will need to show your passport, driver’s license, or gas bill with the gas book.
- Other requirements: Recent passport-size color photographs, documents for proof of income, bank statement for the past six months, canceled cheque, and ACH form for Electronic clearing mandate. Any other documents specified by the lender.
Features of Second-Hand Two-Wheeler Loans
- Typically, you can get a loan of up to Rs.10 lakh from most lenders.
- Your loan amount might vary depending on factors such as:
- Cost of the vehicle
- Repayment tenure
- Credit score
- The interest rates offered by lenders in India for second-hand bike loans are attractive. However, rates vary and so you should check them to determine if they are inexpensive.
- A repayment term of around five years is accepted by Indian lenders.
- Eligibility for this program begins at 21 years old. The maximum age for eligibility for a used bike loan is 65 years old, but in special circumstances, you can obtain one if you are 18 years old.
- It is probable for you to be charged a processing fee after taking out a loan. But there are some banks that will not charge you a processing fee for second-hand bike loans. It’s best to review all options before selecting one for your used bike loan.
- Taking a second-hand bike loan might involve a pre-closure fee since you can repay the loan early.
It is not possible to get a loan for a pre-owned bike for everyone. There are certain conditions that must be fulfilled when applying for a loan for a used bike. It’s advised to check for the following things before you apply for a loan:
Age criteria: There is an age requirement of 21 years old for getting a used bike loan. A bike loan cannot be repaid if the borrower is older than 59 at the time of loan maturity.
Occupation: An individual can apply for a second-bike loan regardless of whether they are employed or self-employed. Whether or not you receive a loan however directly depends on your CIBIL score.
Salary requirements: In order to be considered, you need to be earning more than Rs.12,000 per month. You also need to have a year of experience. All this ensures that you will be able to repay the loan to the lender.
Condition for self-employed people: If you are self-employed, you need to have been in business for at least two years before you can apply for a used bike loan in India.
Other conditions: Check bounces should not have occurred in the last 12 months from the date of application. In addition, you must make sure that the address provided is the one you are currently living in for a year.