Can I finance my Second Hand Bike purchase with a loan?

Are you deliberating on a bike purchase? You might argue that you do not have sufficient funds to buy a new two-wheeler and are still in the process of learning how to ride one. However, getting a second-hand bike can not only facilitate this learning but also prove to be much cheaper. In this case, you might be wondering how to finance this big-ticket purchase. While it is not a brand-new vehicle, you still need a large amount of money to buy a used two-wheeler. You can get a second hand bike loan to facilitate your . Let us understand how in further detail.

Understanding Second-Hand Bike Loans

Just like when purchasing a new bike, you can get a loan when buying a used two-wheeler. Lenders usually offer a loan amount of up to ₹10 Lakhs for customers looking to buy a second-hand bike on loan. Some loan providers may even offer a high amount depending on your requirements and eligibility. In India, a majority of lenders will typically offer you a repayment tenure of up to 5 years. These credits are available at competitive interest rates and should be compared prior to choosing a loan offer. You can also take the help of a bike loan EMI calculator for this purpose and plan your finances for the coming years. These loans can be used to foot the entire cost of your bike.

What are the Eligibility Criteria for Getting a Second-Hand Bike Loan?

1.Age

Usually, if your age lies between 21 and 65 years, chances are that you are eligible to get a loan to purchase a second-hand two-wheeler. However, this criterion can vary from lender to lender.

2.Income

Your monthly income plays an important role in determining whether you can get the loan or not. This is because your earnings assure the lender of your repayment capabilities. Typically, if you have an income of around ₹12,000 to ₹18,000, you are considered eligible for the loan.

3.Credit Score

As is the case with most loans, your credit score is one of the most important factors taken into account when determining your eligibility. Your creditworthiness, as reflected in your credit report, is gauged and assessed by the lenders. Therefore, it is important to maintain a good credit score, to ensure that your application is not rejected.

Additional Charges on a Second-Hand Bike Loan

Here are some additional charges applicable on a second-hand bike loan you should know about before applying for one.

1.Processing Charges

Typically, lenders will not charge you for processing your loan application. However, some loan providers may ask you to pay a nominal fee of about ₹1,000 for the same.

2.Pre-Closure Charges

If you are expecting to receive a lump sum amount in the near future that you want to direct towards your second-hand bike loan, be careful. Make sure to read the fine print of your loan documents and check the charges applicable on such prepayments and foreclosure.

How Can You Apply for a Second-Hand Bike Loan?

There are two ways to apply for a second-hand bike loan. You can either get it online or offline, at your convenience.

1.Offline Mode

1. Select the bank you want to get the loan from
2. Visit the chosen bank’s nearest office branch
3. Fill out the loan application form manually
4. Submit all the required documents
5. Bank executives will guide you through the remaining process

2.Online Mode

1. Select the bank you want to get the loan from

1. Visit the chosen bank’s official website

1. Fill out the loan application form online

1. Submit the application form with supporting documents

1. After a quick verification process, if your details are submitted correctly, your application will be accepted

What Documents Do I Need For This Process?

Here is a short list of the documents you might be asked to submit when applying for a second-hand bike loan.

1. Identity proof
2. Address proof
3. Age proof
4. Income proof
5. Quotation of the two-wheeler you look to purchase
6. Passport-size photographs

Things To Keep In Mind When Applying For a Second-Hand Bike Loan

1.Budget

It is important to fix a budget and work around it, especially when you are planning to take a loan. Make sure to consider your earnings and all your expenses when getting a loan. You should also estimate the monthly instalments of the said loan with the help of a bike loan EMI calculator. This will help you plan your finances better.

2.Compare

Don’t borrow money without checking offers from multiple lenders. Compare the interest rates to analyse which option suits your financial requirements better. For this purpose, too, you can use the bike loan EMI calculator and compare the cost of each offer.

Also, make sure to pay special attention to the fine print which mentions additional charges like prepayment and foreclosure fees, before taking a decision. These small expenses can have a huge impact on the aggregate cost of your loan.

3.Go Digital

You are offered the option to select whether you want to apply for your loan online or offline. Digital loan applications are much easier, hassle-free, and rather convenient. These involve minimal paperwork and can be done from the comfort of your home. This saves you a lot of energy and time, while giving you online access to all your loan documents.

You can buy the bike of your choice, even if second-hand, with the help of a loan. Armed with the pointers mentioned above, get a second-hand bike loan on favourable terms and set off on your journey!