Buying a bike on EMI (Equated Monthly Installments) is a smart and convenient way to spread out the cost of your purchase, making it more affordable and manageable. This guide will provide a step-by-step process on how to buy bike on EMI and much more. So, let’s begin!
1. Determine Your Budget
Before looking for bike on EMI, determine how much you can afford to spend on monthly EMIs. Consider your income, monthly expenses, and any other financial commitments. This will help you decide the price range for your new bike.
2. Check Eligibility for a Bike Loan
Most financial institutions have specific eligibility criteria for bike loans. Here’s what you generally need:
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You should be at least 21 years old.
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Must be an Indian resident
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For salaried individuals, a minimum salary of Rs. 10,000 per month is required, and for self-employed individuals, a minimum annual income of Rs. 1.20 lakhs is necessary.
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You should either be salaried or self-employed.
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A good credit score improves your chances of loan approval.
3. EMI Calculation and Repayment
It’s crucial to understand your EMI amount and repayment schedule. Most lenders provide an EMI calculator on their website where you can input the loan amount, interest rate, and tenure to calculate your monthly EMI. This helps you plan your finances better.
4. Gather Required Documents
You will need to submit various documents when applying for a bike loan. These generally include:
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Proof of Identity: Passport, Voter ID, Driving License, PAN Card, or Aadhaar Card.
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Address Proof: Utility bill, rental agreement, employer allotment letter, etc.
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Income Proof: Latest salary slip, bank statement, Form 16, or ITR.
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Surrogate Proof: Documents like proof of owning a house or agricultural land, bank statements, or evidence of owning a car.
5. Apply for the Loan
You can apply for a bike loan in several ways:
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Online Application: Complete the online application form by visiting the lender’s website. Enter your personal and professional details, verify your mobile number with OTP, and upload the required documents.|
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Mobile App: Some lenders have mobile apps where you can apply for a loan. Download the app, verify your mobile number, and complete the application process.
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Visit a Branch: You can also visit the nearest financial institution branch and apply for the loan in person. A representative will guide you through the process.
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Call Customer Support: Call the lender’s customer support number to apply for the loan over the phone.
6. Loan Processing and Approval
After you submit your application, the lender will review your documents and check your eligibility. If everything is in order, your loan will be approved. This process is usually quick, and some lenders offer instant approval. For those wondering how to buy a bike on EMI, this streamlined process ensures that you can get your bike quickly and conveniently, spreading the cost over manageable monthly payments.
7. Loan Disbursement
Once your loan is approved, the amount will be disbursed. Depending on the lender’s policy, the disbursement can be directly to the bike dealer or your account. Ensure you check the disbursement procedure on the lender’s website.
8. Insurance and Registration
After purchasing the bike, get it insured and registered at the local RTO (Regional Transport Office). Comprehensive insurance is mandatory and protects you against theft, damage, and third-party liabilities.
9. Enjoy Your Ride!
You can hit the road on your new bike with everything in place. Enjoy the freedom and convenience it brings to your daily commute.
Tips for Managing Bike Loan EMIs
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Set up automatic payments to ensure you never miss an EMI. This also helps maintain a good credit score.
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If you have extra funds, consider prepaying your loan to reduce the interest burden.
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Keep track of your monthly expenses and ensure your EMI payments do not strain your finances.
Benefits of Purchasing Bike on EMI?
Buying a bike on EMI has several advantages, such as:
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Loan Value up to 95% of the On-Road Price of Two-Wheeler
Financial services like HDB Financial Services Ltd. aim to meet your financial needs by offering bike and scooter loans up to 95% of the on-road price of your chosen vehicle.
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Attractive Interest Rates
They tailor the interest rates on two-wheeler loans to suit your financial situation and repayment ability, ensuring you get the best low-interest bike loan.
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Flexible Repayment Tenure
Two-wheeler loans come with flexible repayment terms ranging from 12 to 60 months, making it easy to manage your EMIs. You can use a bike loan EMI calculator to plan your payments in advance.
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Hassle-Free Documentation Process
With the instant two-wheeler loan application, you can enjoy a quick and easy, paperless documentation process. Simply upload digital copies of your documents to get started.
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Quick Processing and Speedy Disbursal
Once you meet the eligibility criteria and submit your documents, your loan gets approved instantly and disbursed quickly, allowing you to own your desired bike or scooter without delay.
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Easy Repayment
With flexible EMI options based on your financial profile, you can choose a plan that best suits your needs.
Buying a bike on EMI is a smart and convenient way to own a two-wheeler without the financial burden of paying the entire amount upfront. Following the steps above, you can easily manage the process and ride your dream bike quickly. Remember to choose a reputable financial institution like HDB Financial Services Ltd. that offers competitive interest rates, flexible repayment options, and additional benefits to make your purchase even more rewarding.
Whether you are looking for a daily commuter or a weekend cruiser, a bike loan can help you achieve your goal without straining your finances. So, start planning today and enjoy the freedom and convenience of owning a bike!
