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Used Bike Loan

Second Hand Bike Loan

Last Updated 30th Oct 2020

  • With used bike loans, one can opt a loan to buy a second-hand bike.
  • The interest rate on second hike bike loan ranges begins from 11.60%.
  • The maximum tenure of a used bike loan is five years.
  • Processing fees and preclosure charges are applicable on used bike loans.
  • Get loan upto ₹ 10 Lakh for a used two-wheeler.
Apply for Two Wheeler Loan @ 11.60%*

Used Two-Wheeler Loan

A two-wheeler is a perfect solution for overcrowded public transportations, and the long traffics. This may be the reason for the two-wheeler market in India growing bigger day by day. Be it travelling to the office daily or going on a trip, bikes and scooters can do the job perfectly. However, it cannot be denied that buying a two-wheeler can make a big hole in the pocket. In that case, a second-hand two-wheeler can be a better option for those with a budget or for those who wish not to spend much. Buying a second-hand two-wheeler becomes even easier with the help of a two-wheeler loan. Many leading loan providers of the country are now offering used bike loans with attractive features.

Features of Used Two-wheeler Loan

Here are the features of a second-hand bike loan

  • Loan amount: You can get up to ₹ 10 Lakh lakh as a used two-wheeler loan. However, remember that the loan amount depends on the value of the two-wheeler.
  • Interest rate: The interest rates for second-hand bike loans begin from 11.60%. The rate of interest varies based on the two wheeler loan lender.
  • Tenure: Two-wheeler loans generally come with a maximum tenure of 5 years. However, you can opt for a tenure of your preference. The tenure and EMI have an inverse relation. If you opt for a lower EMI, the tenure will be longer and vice versa.
  • Age criteria: In general, an individual must be above 21 years, but not over 65 years to be eligible for a two-wheeler loan. Some banks may offer bike loans with a minimum age requirement of 18 years.
  • Net monthly income: Both salaried and self-employed individuals are eligible for availing second-hand bike finance from loan providers. For salaried individuals, there is a minimum margin of net monthly income. Most banks have a minimum monthly requirement of ₹ 18,000. However, some banks may provide loans to salaried employees with a monthly income of ₹ 12,000 based on the city the borrower resides in.
  • Processing fees: The processing fees charged on two-wheeler loans may vary across lenders. While some lenders may charge no processing fees for some banks, others may charge up to ₹ 1,000.
  • Pre-closure: Pre-closure is allowed for used bike loans. You can repay the complete loan amount before the tenure and can pre-close the loan. However, some pre-closing charges may be imposed.

Loan options to purchase second-hand Bike/Two-Wheeler

Many banks provide second-hand bike loans with various rates of interest and tenure. Before you opt for any loan, take a look at the loan options that can help you purchase a second-hand bike.

  • Bike loans: Nowadays, banks offer loans for both new and used bikes. They will offer a loan amount after verifying the used bike you want to buy.
  • Personal loans: Instead of a bike loan, you can go for a personal loan. A personal loan can prove to be beneficial while buying a second-hand bike or scooter. You can pay for the bike and can use the remaining amount for any repair or for making any addition to the bike.
  • Dealer finance: Many dealers provide second-hand bike finance. You can get direct loans from the dealers. The dealer decides your loan eligibility based on your credit score and reports.
  • OEM financing: Some Original Equipment Manufacturing or OEM companies offer exclusive financing options on their vehicles. You can avail the OEM financing for a good deal. Repayments are decided based on your limits.

How to Get a Loan for Used Two-Wheeler?

Here are a few steps that will help you get a loan for a used two-wheeler without any hassle.

  • Verify own creditworthiness: When you apply for a loan, the respective bank runs a check on your CIBIL score to verify your creditworthiness. A good CIBIL score means you have repaid your debt on time and hence increases the chances of you availing the loan. Thus ensuring that you have a good CIBIL score is the first step of applying for a loan.
  • Set your budget: It is important to know your budget before making any purchase. The same goes for loans. You must apply for a loan that comes with affordable EMIs. The bike you like may bring a heavy financial burden on your shoulder. To ensure that you do not end up buying something you cannot afford, make a budget based on your requirements and stick to it.
  • Compare the options: As stated earlier, there is a wide range of options to choose from. To select the best, you must study all the options. Compare the interest rates, tenure and other features offered by the lenders.
  • Select a trustworthy lender: A lender checks your creditworthiness before granting your loan application. Similarly, you also should check the trustworthiness of the lenders. The well-established and reputed loan providers have clear and pre-decided terms and conditions.
  • Opt for your existing bank: Banks generally offer special offers for their existing customers. Hence, by applying for a loan at the bank with which you have any savings account or from which you have availed a loan previously, will be beneficial.
  • Apply online or offline: Most of the loan providers offer both offline and online facilities. You can either visit the branch of your selected bank or simply go to their official website.

Documents Required

The following documents are required for availing a used bike loan:

  • Proof of identity such as Aadhaar Card, PAN card, Voter ID, Passport, Driving license or any Government-issued ID card
  • Proof of residency such as Passport, Voter ID card, electricity bill, telephone bill, Driving License etc.
  • Proof of age such as Voter ID card, PAN card, Birth Certificate, school or college leaving certificate
  • Proof of income such as Form 16, latest three salary slips, banks statements of the latest three months
  • Quotation of the two-wheeler.

FAQs

How can I get a loan for an old bike?

You can get a loan for an old bike from the banks offering used or second-hand bike loans. Get the quotation and apply with required documents either at the branch or on the official website of the respective bank.

Can I sell my bike if it's in Finance?

When you buy a bike on Finance taken from any provider, it becomes the property of the provider until you repay the total loan amount. Hence, you cannot sell your bike if it's on Finance.

Can we transfer the two-wheeler loan?

You can transfer the two-wheeler loan. However, the decision and process depend completely on your loan provider.

Can I use Personal Loan To Purchase second-hand Bike?

Yes, you can use your personal loan to purchase a second-hand bike.


*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More