Have these documents in hand before applying for a two-wheeler loan!
The growing demand for two-wheelers in the country has been met with equally significant growth in bike loan financing options. While buying a dream bike may be high on one’s priority list, one cannot hope to bypass already existing financial responsibilities with such a substantial one-time investment. This is where two-wheeler loans come in handy. With up to 100% financing options, they allow you to buy your dream bike and pay for the same in EMIs over a customised tenor without compromising on your existing financial responsibilities. To make the application process easier, lenders have instituted a minimum documentation policy, whereby you can avail of a two-wheeler loan by submitting just a few basic documents. Let’s take a look at this list of basic documents required for a bike loan.
The lender must be able to verify your identity before sanctioning the desired loan amount. Submitting a valid ID proof allows for this cross-verification process to happen smoothly. Thus, to apply for a two wheeler loan, you will need to furnish a document verifying your credentials. Any government-issued photo ID proof like your passport, voter’s ID, Aadhaar Card, PAN Card or driver’s licence qualifies as valid identity proof. You will have to submit photocopies or scanned images of these documents, so remember to keep a few copies handy when applying for a bike loan. Identity proof is one of the most critical documents required for a bike loan as it also validates the age of the applicant. This is vital when it comes to meeting the eligibility criteria for the loan.
The bike loan application form will elicit information about your current and permanent residential address. You will need to submit a document validating this information. Documents like your driver’s licence, voter’s ID, passport and Aadhaar Card can double up as both identity and residence proofs. You can also submit the latest utility bills, like your monthly electricity, gas or water bills as valid proofs of residence.
Apart from documents verifying your name, address, date of birth, age and other crucial information, you will also need to submit copies of your most recent passport-sized photos. While most lenders require you to attach at least two copies of these photographs with the loan application form, the actual number of copies you will have to present when submitting the form may vary from one lender to the other. Thus, remember to read the documentation list carefully before submitting your bike loan application form.
Whether you’re a salaried person or a self-employed individual, you will have to submit the aforementioned list of documents when applying for a two-wheeler loan. However, this documentation list bifurcates when we reach the domain of income. In other words, the income proof documents you will need to submit for a bike loan will depend on the kind of work you’re engaged in. Let’s take a look at the income proof documents needed by salaried people and self-employed individuals.
Income Proof Documents for Salaried Persons
If you happen to be a salaried person employed at a Government undertaking, a private firm or a multinational company, you will have to submit copies of your last three salary slips, Form 16 and bank statements. Some lenders also accept duly signed salary certificates that are issued by the employer of the applicant and clearly outline the individual’s monthly income.
Income Proof Documents for Self-Employed Individuals
Self-employed individuals must submit their income tax returns as proof of income. Recent bank statements should also be included in this list of documents required for a bike loan.
Income proofs are listed as essential documents in all two-wheeler loan applications because the lender needs to assess the financial standing of the applicant before sanctioning the loan. Your bank statements or monthly salary slips vouch for a steady source of income, assuring the lender that you will repay the loan within the designated time frame.
Wrapping It Up
Getting a two-wheeler loan sanctioned is a hassle-free process if you meet the eligibility criteria and have the above-mentioned documents handy. Remember that you need to submit photocopies of these documents and furnish the original ones at the time of verification. To ensure that the application process is smooth, it is always prudent to carefully read your lender’s specific list of documents required for the bike loan. That said, lenders such as Bajaj Finserv offer two-wheeler loans with minimum documentation requirements. The application process is simple and convenient, with instant approvals and quick loan disbursals. Additionally, by opting for the Bajaj Finserv two-wheeler loan, you can get up to 100% financing of the on-road price of the two-wheeler, along with competitive interest rates.