Have you dreamt of owning a bike to take long road trips as well as navigate city traffic snarls easily?
There are more than a hundred reasons to own a bike; some of them are: saves time, no parking hassles, gives you the freedom to travel anywhere, does not drain you out, easy to maintain, fuel efficient, fun to ride, adds to your cool quotient, and
Excited? Want to own a bike right away?
Here’s an option to consider…
Unlike earlier times, where one needed to save money to buy a bike, today owning one of your choice is easy –– irrespective of whether you earn a regular salary or are self-employed (businessman or professional).
Axis Bank offers a Two wheeler Loan, a flexible, quick and cost-effective way to own your dream bike/two-wheeler. The two wheeler loan is available at an attractive rate of interest and easy documentation with Axis Bank.
Who can apply?
- Salaried individuals
- Self-employed individuals
The minimum age required at the time of application for the loan is 21. In addition, individuals need to be residing at the given address for a minimum 1 year and have been working for a minimum 1 year.
You can apply for Two wheeler Loan with Axis Bank broadly in any of the following ways:
But applying online is by far the best, if you are comfortable doing it. The online application can be done from the comfort of your home, office, or wherever you are.
All you got to do is enter your name, e-mail id, mobile number, state, city, the captcha code, and accept the disclaimer policy before you clicking on the ‘Submit’ button.
Soon, you will receive a call from one of the Axis Bank representatives explaining the details about your Two wheeler Loan.
What are the documents required?
The following will be needed:
- Identity and address proof (viz. Aadhaar, Passport, Voter Id, PAN Card, Driving License, etc.)
- Age proof (viz. Aadhaar, Passport, PAN Card, Driving License, Birth Certificate, etc.)
- Office / business proof for self-employed individuals (viz. electricity bill, telephone bill, Shop & Establishment Certificate, SSI or MSME Registration Certificate, GST Registration Certificate, Current Account Statements, etc.)
- Income proof (viz. latest salary slip, Form 16, latest ITR)
- Latest three months bank statements
What is the available loan tenure?
The minimum loan tenure for a Two wheeler Loan is 12 months, while the maximum is 48 months. However, for two wheelers with >500 cc (Super Bike), maximum tenure is 60 months.
How much loan can one avail of?
You can borrow a maximum of 100% of the on-road value of the bike depending upon the loan scheme and your overall profile.
What will the bank assess before granting a loan?
While scrutinising your Two wheeler Loan application, the bank will also assess the type of bike/two-wheeler you wish to buy, the loan tenure, the employment stability, and pre-existing Equated Monthly Instalments (EMIs) on outstanding loans to recognise
your credit worthiness.
In addition, during the due diligence, the bank may also access your credit score to gauge your credit history. Note, if your credit score is high (750 and above), you stand a chance to bargain as regards interest rate and processing fee.
And if you are a select customer of Axis Bank who enjoys priority banking or Privee Banking status, a Two wheeler Loan may be pre-approved for you.
Use an EMI calculator to know your debt obligation
To know how much the EMI will be for the Two wheeler Loan, use the EMI calculator –– it is a great tool. All you have to do is enter the loan amount, interest rate, tenure, and processing fee, and will give the results: EMI, and indicate
the total interest you would pay during the loan tenure.
How can you repay your Two wheeler Loan?
You can opt for either of these:
As mentioned earlier, both salaried and self-employed individuals can apply.
- Standing Instructions (can be used if you have a savings account, salary account, or current account with Axis Bank. Your EMI will be automatically debited from the account you specify.)
- National Automated Clearing House (NACH) or Electronic Clearing Service (ECS) can be used if you do not have an account with Axis Bank and would like your EMIs to be debited automatically at the end of the monthly cycle.
- You also have the option to provide Post-Dated Cheques (PDCs) from a non-Axis Bank account. But it is recommended to opt for Standing Instructions or NACH/ECS as they are faster and less prone to errors, frauds compared to PDCs.
Is there a security or collateral needed to opt for a Two wheeler Loan?
No, your bike itself will be used as collateral and will be hypothecated. Hence, you cannot sell the bike until the loan is repaid in full and the bank issues a No Objection Certificate (NOC).
How to remove hypothecation once the Two wheeler Loan is repaid in full?
To remove the hypothecation from the Registration Certificate (RC), the bank will provide you the following documents:
- No Objection Certificate (NOC)
- FORM 35 (Notice of termination of an agreement of hire-purchase/lease/hypothecation)
The documents need to be forwarded to the Regional Transport Office (RTO) and the general insurance company (for two-wheeler insurance) to take cognisance and remove the hypothecation.
There are host of benefits of taking a loan to purchase a bike instead of doing it outright with your own money:
- Provides quick access to ride your favourite bike/two-wheeler
- The loan application process for a bike loan is fairly simple
- The loan is sanctioned with an insurance cover
- Paying via EMIs eases the burden of paying at one go, you got to make a down payment
- You do not have to mortgage your existing assets; because the bike loan is a secured loan
- Your existing finances are not exhausted
- Investments assigned to other financial goals are not exhausted
With Axis Bank, you have the opportunity to own your favourite bike and ride it happily as you service the loan.
Disclaimer: This article has been authored by PersonalFN, Axis Bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.