Know about the loan process if you are buying a two-wheeler as a college student 18th January 2022
If you are a college student, the chances are that you have tried to convince your parents to buy you a two-wheeler. A vehicle becomes a necessity given the number of places you have to travel to, coaching classes, purchasing project materials, helping your mother get daily groceries, etc. A two-wheeler would be a wise investment to help save commuting expenses.
As a college student, you start understanding the importance of financial independence. You may lack enough funds to purchase it by making a one-time payment in full. However, Many NBFCs have made it relatively affordable for the students to choose a loan scheme with a structure that suits their needs. Some lending institutions also offer competitive interest rates on these two-wheeler loans.
Are you looking to purchase a vehicle for your day-to-day college activities? Here’s all you should know about the loan process if you’re buying a two-wheeler as a college student.
Key features of bike Loans:
1. Document verification takes approximately three days.
2. On average, the loan period will extend up to 3 years for applicants (students).
3. The loan doesn’t mention any restrictions on the type of two-wheeler the student wants to purchase. It can be either a superbike, moped or anything in between.
4. Most two-wheeler loans for students are considered a type of unsecured credit. So, there is no requirement for collateral or security.
5. If you’re applying for this loan, you must mention a co-applicant or guarantor with employment stability and healthy credits to avail of this loan with convenience.
Eligibility (For students):
1. You should be a student to apply for this loan.
2. The loan applicant’s minimum age requirement is 18 years.
3. Student’s permanent residence is required at the time of application.
Eligibility (For Guarantors):
1. The co-borrowers should have credits > 700 or above (ideally). This favors the applicant to secure a low-interest rate for the two-wheeler loan.
2. Appropriate documents should be presented from the guarantor’s end to showcase financial and income stability.
Required documents (applicant):
1. KYC documents (AADHAR, Passport, Voter ID, Driver’s license, etc.)
2. Address proof (Passport, Bank Passbook, Utility Bills, etc.)
The following documents are to be presented if the guarantor is self-employed:
1. ITR-Income Tax Returns of the past two years
2. Bank statements of the past year
3. Business proof
The following documents are to be presented if the guarantor is salaried:
1. Pay slips of the last six months
2. Bank statements of the last six months
Application process:
To apply for a two-wheeler loan, here are three simple steps you need to follow. But before going ahead with the loan process, make sure that you’ve finalised your vehicle, its model, and a dealer.
1. The lender you’ve chosen will check your eligibility for the loan at the dealership.
2. Once your eligibility for the loan is verified, you need to fill up an application form and submit it along with the necessary documents required by the lender.
3. Once all the documents are verified, and your loan is approved, the required amount will be sanctioned and transferred into your dealer’s account. You can get your vehicle now!
This was the complete guide to the loan process to buy a two-wheeler as a college student. Another wise idea is to get insurance to ensure the safety of your vehicle in case of extreme unexpected circumstances. You can purchase 2 wheeler insurance online with the convenience and hassle-free process associated even while settling a claim.
Click HERE to know more about how you can get 2 wheeler insurance online.
Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.