Can Students Apply for Two Wheeler Loans in India?
The COVID-19 pandemic has witnessed a surge in the sale of two-wheeler vehicles. Most people prefer the purchase of two-wheelers as the cost involved in buying a car is b. The benefit of a two-wheeler is that it is cost-effective and provides an easy alternative solution for commuting in big cities, especially for young students.
Can Students Apply for a Bike Loan? Things You must Know
Those who cannot afford a two-wheeler can now secure a two-wheeler loan on an immediate basis upon satisfying specific requirements. Lenders have come up with a perfect solution for students who have enough funds to make the purchase. A bike loan will help you collect funds for owning a two-wheeler in an instant. Owning a two-wheeler is considered a feasible mode of transport, especially for the young demographic.
Let us look at a few things you must know before applying for a bike loan in India. These are:
To apply for a two-wheeler loan, you must provide a co-applicant or a guarantor with a good credit score and stable employment. A good credit score is typically 700 or above. Having a guarantor/co-applicant will indemnify in case of non-payment.
Other critical criteria to make yourself eligible for a bike loan are:
- You must be a resident of India.
- You must be a student above 18 years of age.
- You must have a permanent address before applying.
- The co-applicant/guarantor must either be self-employed or a salaried person.
Documents for Loan Application:
The application process of bike loans for students is simple and requires minimal documentation. Like any other loan application, you must be KYC compliant to complete the loan application procedure.
Following are the documents required during the loan application process:
- Your KYC documents and copies of your passport size photographs: Aadhar Card, PAN Card, Voter’s ID, passport, and driving license.
- If your co-applicant or guarantor is a salaried individual: They must submit payslips of the last 3-6 months along with copies of bank statements of the previous six months.
- If your co-applicant or guarantor is a self-employed person, they must submit IT returns of the last two years, bank statements of the previous one year, and business proof.
Additional Read: Things to Keep in Mind While Opting for a Pre-Used Car Loan
Advantages of Two Wheeler Loan for Students
Here are a few gifts/benefits of a bike loan you must know. These are-
- The process of documentation is minimal.
- It provides for flexible repayment.
- Having a co-applicant/guarantor makes the process of repayment easier.
- Most lenders offer bike loans for students at a low-interest rate.
- Most lenders offer 100% financing and there’s no need for you to worry about arranging an initial down payment.
Additional Read: How Can a Personal Loan be Used to Fund Your Education
A student bike loan is the most practicable solution for middle-class income earners. You can apply for a bike loan online or offline through any lending institution.
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