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Documentation required for a bike loan

In today’s fast paced world, everyone’s life revolves around travelling from places to places. Dependency on public transportation can be an added stress factor in an individual’s life and hailing a cab for travelling can add an additional expense to their life and buying a car can be an expense that most of the individuals of the working middle class cannot afford. A two wheeler is the optimal solution for making short distance travels. Individuals who wish to afford a bike can opt for a bike loan. A bike loan is the most efficient way of generating funds for the purchase of a bike.

In a bike loan, the financial institution provides the loan amount to the customer for the purchase of a bike. Through a bike loan the customer can purchase a new bike or a secondhand one and they can get a bike that is out of their budget. Finances involved in a two wheeler finance allows the customer to pay the EMIs comfortably, plus the maintenance costs involved in owning a two wheeler is lower than the costs involved with four wheelers. Financial institutions these days have tie-ups with the dealers of bikes, which means a customer can just visit the dealership and apply for the bike loan and ride out with the bike of their own.

In a bike loan, the financial institution provides the customer with the loan amount for the purchase of a bike. The repayment on a bike loan is done through equated monthly instalments. Repayment done through monthly instalments reduces the financial stress on an individual. Generally, bike loans have a low interest rate and financial institutions offer fixed interest rates to their customers. A fixed interest rate on a bike loan means, the customer has to pay a fixed amount every month for the set tenure period.

List of documents required for a bike loan application:

It is important to remember that with all the eligibility criteria’s that the customer covers, the customer availing the bike loan needs to prove their eligibility to the financial institution with specific documentation. Listed below are the basic documents that are required while availing a bike loan.

1. Photo identity proof:
- Passport-size photographs (at least 4 to 6 are recommended to be kept for the loan application)

2. Identity proof:
- Passport
- Electoral voter identity card
- Driving license
- PAN card
- Aadhar card

3. Permanent address proof:
- PAN card
- Driving license
- Utility bills

4. Employment proof:
For salaried individuals –
- Employment or offer letter
- Bank statements
- Salary slips
For self-employed individuals –
- Application form
- Bank statements
- Proof of source of income