Information on Two Wheeler Loan Documents

Proper documentation is necessary for the approval of any loan and a bike loan is no different. Documentation is a very important component of the bike loan application process. India is known to possess one of the largest market shares of two-wheelers at an international level. The bike enthusiasts in India mostly people from the young age groups rely on loans to buy their dream bikes as it minimizes the burden on the pocket. For those, especially the moderate-income group of people, a two-wheeler loan is the best way to own a vehicle which is also a great investment for them. Your loan documents reflect how well you will pay back the loan on time. Successful processing of the two wheeler loan documents will increase the chance of approval for the loan. So, the borrowers should know how important it is to submit their loan documents in proper order. Let us discuss this.

The verification of loan documents is necessary for the approval of the loan. Following are the documents needed for a bike loan.

• Application form

The application form is the first step of the documentation process for the bike loan. You will need to formally apply for the bike loan you are seeking. Once you submit the loan application, your documentation process will start by verifying the details you have listed in the application. Of course, the lender will obtain your credit history separately but your eligibility for the loan also depends on the documents you will send to the lenders. So, you must produce accurate and honest information on your application form.

• Identity and address proof

Identity and residence proof is mandatory for applying for a bike loan. This will establish the fact that you are a clean individual, a law-abiding citizen who needs a two-wheeler loan to buy a vehicle and not for other purposes. As a form of evidence, you must submit your Aadhar card, pan card, driving license, passport, voting card, ration card, etc. these documents will bear your name, address, and photo and your financial institution will rest assured about your individual status. Self-employed applicants will need to produce company address proof to the lender.

• Income proof and bank statements

If you are a regular employee and getting a salary every month, you will require showing your salary slips from your current employer. Usually, the salary slips for the last 3 months or 6 months may be required in the process. If you are self-employed, for example doing some business, you will require to produce your bank statements and your business proof details. A six-month bank statement and income tax return documents are needed for this. Some lenders will also ask for TDS certificates. A steady income proof will act as a guarantee to the lender that you are capable of paying back the loan on time without any difficulty.

• Photograph of the applicant

To prove your identity, you must submit a passport-size photo of yours to the lender. The photograph should be a recent one.

Based on your documents the lenders will take a decision on whether to offer you the loan or not. If they find any discrepancy with the documents they might hold or reject your application. Your financing company will give you a complete list of documents when you apply for the bike loan. Apart from the above documents, some lenders may require additional documents from the borrowers. So, document requirements may slightly vary from lender to lender. But you must fulfill them.

Online versus offline loan documentation

For a two wheeler loan apply online, these documents can be easily submitted at the lender’s website within a few seconds. Similarly, if you apply for your two-wheeler loan offline you should visit the lending company’s office and submit these documents physically over the counter. Online bike loan application is easy and faster than offline loan application. Now almost all lenders offer online documentation facilities for the convenience of the borrowers.

Eligibility conditions

You should know that simply submitting your loan documents alone will not get you the loan. You must fulfill some eligibility criteria such as

• You should be of minimum 21 years old to apply for a bike loan. Some lenders allow 18 years old with a co-applicant for the loan. You should not exceed 60 years at the time of completion of the loan tenure.
• You need to have at least one year’s employment stability
• You should be residing in your current location for the last one year.

To conclude

As you know for a limited income group of people, paying EMI is always better than spending a huge amount at once. So, a bike loan always weighs higher in this regard. Just be careful with your two wheeler loan documents and your bike loan will be approved if you met the eligibility criteria. For any two wheeler loan financing company, these documents are a prior necessity and hence you should take them seriously.