While buying any used two-wheeler, customers are offered a loan by banks or other financial institutions to help the customer go an easy buying experience. By buying a second-hand bike on EMI, the customer is offered an easy payback routine. Here is everything that you need to know about EMI for bikes.
DOCUMENTS:
While applying EMI loan for second-hand bikes / any bikes, the customers are requested to submit a recently clicked passport sized photographs along with other documents like ID Proof (Driving License, Passport, Aadhar Card, etc), Address Proof (a proof including the current residential address and proof of permanent resident address) is required. Also, proof of employment for salaried employees includes documents like payslips, offer letter, form 16, bank account, etc. For customers who are self-employed – Bank account statements of the business account or ITR filed on behalf of the business is required.
DOWN PAYMENT:
While banks cover almost up to 90% of the total bike cost (which you will pay back in terms), the financial organization will require the customer to pay some initial amount which is also known as a down-payment in other terms. The amount for a down-payment depends on the customer’s credit score to which the amount for a down-payment may vary.
FLEXIBILITY:
When you buy second-hand bikes on EMI, the bank or the other loan providers offer a certain duration of time to repay the loan. Some of them offer schemes range from 12 months to 5 years. It is important to choose the suitable term of repayment to avoid overpaying interest while also remembering the amount that can be paid by an individual.
ELIGIBILITY:
In order to be eligible for buying a second-hand bike on EMI, the applicant is required to belong to the minimum age category of 18-21 years.
Average income criteria to be achieved by the applicant which includes salaried or self-employed customers.
CIBIL score is mandatory along with the financial stability to repay the bike loan if any other loans are taken prior.
FIGURES:
It is very important to understand the total cost an individual will be subjected to pay during the loan period. Some charges including processing charges, prepayment charges, and charges like late payment charges also tally up with the initial loan amount.
You feel that we missed out something? Feel free to add it in the feedback section below.
