Purchasing a new two-wheeler vehicle may not be a feasible option for many. The price of a new bike or scooter can be high and hence looking to avail a loan for the same may not be a feasible financial option. Hence, in such cases, you can look to buy a second-hand two-wheeler vehicle for yourself. The cost of the vehicle will be lower and you can avail a loan for the same.
There are various lenders in India which offer second hand two-wheeler loan to their customers. Here, we will list down everything you need to know about second hand two-wheeler loans.
Features of second-hand two-wheeler loans
- Loan amount: Most lenders will offer you a loan of up to Rs.10 lakh. However, the loan amount you will avail will depend on factors such as the cost of the vehicle, repayment tenure, your credit score, etc.
- Interest rate: Lenders in India offer attractive interest rates for second hand bike loans. The interest rates vary from lenders to lenders and hence, you must check them to see if it is feasible for you.
- Tenure: The repayment tenure offered is maximum of up to 5 years by most of the lenders in India.
- Eligible age: The minimum age of eligibility can be 21 years. However, in some cases, you can avail a two-wheeler loan if you are 18 years, while the maximum age of eligibility is 65 years.
- Monthly income: There has to be a certain amount of money you should be drawing on a monthly basis as your salary. While most lenders may require you to earn a minimum of Rs.12,000 p.m., some may consider you eligible for loan if you draw a minimum amount of Rs.18,000 p.m.
- Processing fee: On availing a loan, you might need to pay a processing fee. Though for second hand bike loans, some banks may not charge you a processing fee, other lenders may ask you to pay up to Rs.1,000.
- Pre-closure charges: You might need to pay a pre-closure charge on availing a second-hand bike loan as you can choose to repay the loan before the completion of tenure.
Things to keep in mind before applying for a second-hand two-wheeler loan
Given below are the list of things you must keep in mind before applying for a second-hand two-wheeler loan:
- Set a budget: The loan amount that you are looking to avail must be within your budget so that you can repay it in easy EMIs.
- Maintain a health credit score: You must ensure that you maintain a healthy credit score if you are looking to avail a loan, since having one makes it easier for the lender to sanction your loan application.
- Compare different loan options: Compare the two-wheeler loan schemes offered by lenders including the rate of interest, and other benefits offered to see which of them will be suitable for you as per your requirements.
- Select a trustworthy lender: Always look to avail a loan from a lender who is trustworthy and offers a variety of loan options to their customers. It is always recommended that you avail a loan from your existing bank with whom you have a bank account as the lender may offer you a loan at a lower interest rate and also assist you with the repayment method.
- Apply online: Applying for a loan online is easy and hassle-free and takes only few minutes for the application process to complete. If you are not comfortable applying online, you can visit your bank’s nearest branch to apply offline.
- Identity proof such as PAN card, voter id card, etc.
- Address proof such as Aadhaar, Passport, utility bills, etc.
- Proof of age such as Aadhaar, birth certificate, etc.
- Proof of income such as bank statement, salary slip, Form 16.
- Quotation of the tw0-wheeler vehicle.
How to apply
You can visit the nearest branch of the bank from whom you wish to avail a second-hand two-wheeler loan. Fill the application form and submit it along with all the necessary documents. A bank representative will assist you with the application process.
You can apply online by visiting the lender’s website and submitting all the documents along with the application form. Once all the documents have been submitted, the bank will verify them and if they are found to be correct, they will sanction your loan.
- Can I apply for a second-hand two-wheeler loan jointly?
- Is collateral required while availing a second-hand two-wheeler loan?
- What will happen if I fail to repay my loan?
Yes, you can apply for a second-hand two-wheeler loan jointly.
Hypothecation of your vehicle will be enough and hence you won’t need to submit any collateral.
If you fail to repay your loan, the lender will confiscate your vehicle. Apart from that, your credit score will fall considerably making it difficult for you to avail a loan in the future.