How to get a bike on EMI?
In recent times, the Indian economy has gone through a period of transition. The banking sector has been highly proactive in disbursing loans to consumers, who are inundated with enticing loan offers every day. Bikes on EMI allows people to buy a scooter or a bike without paying a large sum of money. Your monthly EMI includes a portion of the principle, interest, and processing fees.
Benefits of bike on EMI
Below mentioned are some benefits of buying a bike on EMI:
Improve Your CIBIL Score
A CIBIL score is a summary of your income, expenses, borrowings, and repayments over time. When you take out a two-wheeler automobile loan, you are borrowing money to buy the vehicle of your choice. If you repay your auto loan on time, your CIBIL score improves since it raises your creditworthiness, making it easier for you to obtain a loan in the future.
Purchase a Bike of Your Choice
One of the reasons that many individuals resist purchasing a bike is the cost. With a vehicle loan, you can purchase any bike you want without worrying about the cost.
If you choose to buy a bike from your savings, you will be withdrawing a substantial sum of money. This can throw your financial budget off. Obtaining a bike on EMI relieves you of the need to dive into your savings.
Competitive Interest Rates
Keep in mind that the interest rate on vehicle financing is determined by your age, work status, income, and other factors at the time of application. The interest rate on a bike loan from Finnable ranges from 16% to 26%.
Simple Application Process
Previously, you had to wait months to receive funds for your bike loan. You can, however, apply for a bike on instalments thanks to a completely digital approach.
What is the procedure to get a bike on EMI?
Purchasing a bike without making large financial commitments works in the following ways:
Purchase a product and then pay for it through EMI
Buying a bike on EMI is exactly what it sounds like. While purchasing a two-wheeler online, select the EMI option. Flexible options ranging from 3 to 24 months are available.
Join a savings plan with a retailer
Consider it a monthly investment strategy. You will be required to deposit a certain predetermined sum with your favourite auto shop every month. The programmes usually last at least a year.
Directly approach a lender
This can be done both online and offline. You can learn about the various eligibility criteria for a bike loan by visiting the websites of reputable lenders. It is essential to review the qualifying criteria and documents required for a bike loan of various lenders; this will help you lower your chances of loan rejection.
Bike dealerships offer on spot-financing
That being stated, you can walk into the showroom and, after selecting a bike, inquire about financing alternatives. Representatives from different lenders are sometimes present in reputable dealerships; you can speak with them and choose the financing package that best suits your needs.
Apply with online bike aggregators
If you know what bike you want, you can look at the websites of online aggregators. Many of these websites also provide online financing solutions, which need you to enter your information and upload your documents required for a bike loan. However, you may have to wait for the verification process to be finished before learning whether or not you are eligible for the loan, and the offer you receive may not be the best one.
Buying a bike on EMI is available from a range of sources, including banks and non-banking financial institutions (NBFCs). However, in order to be qualified for an EMI on your purchase, you must meet specific criteria. The eligibility criteria differs according to the terms and conditions of various banks:
|Minimum age limit||21 years|
|Maximum age limit||75 years (or retirement age)|
|Status of employment||Salaried or self-employed|
|Minimum income required||Varies from bank to bank|
|Minimum work experience required||Varies from bank to bank|
|Maximum loan amount||Varies from bank to bank|
|Maximum repayment tenure||84 months (7 years)|
|Interest rate range||Varies from bank to bank|
|Credit score||CIBIL score of at least 750|
Documents required for a bike loan
- A Valid ID Proof.
- Two recent photographs (passport size).
- A Valid Address Proof
- Documents stating the previous three Months Salary Slips or Form 16 or the most recent ITR
- It is compulsory to include the bank statement of the previous three months
- Letter of Employment and in case of self employed individual a TDS certificate and details of the company
Please keep in mind that these are typical eligibility requirements that may differ from lender to loan. Depending on which lender you borrow from, additional or different criteria may be required.
The repayment terms will be conveyed to you when you apply for a two-wheeler loan. The rate of interest will be communicated to you based on your specific profile and eligibility. If you meet all of the terms and circumstances, you can acquire a bike on EMI for 100% of the bike’s cost, which means you won’t have to spend any money out of your own pocket.