As the economic capital of India, Mumbai has one of the highest demand-supply reach of loans and advances, including bike loans. One of the top reasons for the rise in bike loan demand in the city is that more and more people here are eager to gain bike ownership as first-timers or when seeking upgrade. The increasing number of bikers on the city roads is a prime example of such enhanced demand for the vehicle. As one of the best ways to purchase a bike is through a two wheeler loan in Mumbai, aspiring bike owners obviously turn towards these advances to fulfil their funding needs.
As secured financing options, these bike loans are easy to avail since the lending risk of the financial institution is covered through vehicle collateralisation through hypothecation. These loans also come with several interesting features that turn out favourable for the borrower. When availing financing for bike purchase, one must know well about all the details related to the advance, like the eligibility requirements, documentational needs for paperwork completion, and the likes. So, here’s everything you need to know about two wheeler loans in Mumbai.
What Does a Two Wheeler Loan in Mumbai Comprise?
The arrangement of two wheeler loans in Mumbai is similar as bike loans in any other city, with some essential perks related to the advance for those availing it in Mumbai. These are high-quantum advances that are suitable for financing big-ticket costs of bike models of all types, even high-value ones. Some favourable features on these advances mean easy loan management for borrowers. For instance, they come with a long tenure that allows for convenient repayment of the loan in easy EMIs.
Another great feature of two wheeler loans in Mumbai is that they carry high LTV if availed from reputed lenders. With the best lenders in the financial market, one can avail an LTV of up to 95%. It means that as much as 95% of the bike’s current market value can be availed as a loan. As for the remaining 5%, the borrower can meet it in the form of down payment made to the bike seller.
As the LTV on the loan is high, the borrower needs to pay only a minimal amount from the pocket to completely meet the cost of bike purchase. Under the bike loan arrangement, the vehicle is hypothecated to the lender against whose security financing is provided.
Once the loan is repaid in full and the lender releases the borrower of all loan liabilities, the bike so collateralised is released of the hypothecation as well. The borrower thus regains complete ownership rights of the two wheeler after such hypothecation release.
Some prominent features related to two wheeler loans in Mumbai include the following.
1. High financing value of up to Rs.10 Lakh.
2. A repayment tenure extending up to 5 years for conversion of the loan liability into easy EMIs.
3. Affordable rates of interest for convenient loan management.
4. Simple eligibility requirements that are easy to meet.
5. Minimal documentation for easy paperwork completion.
6. Online loan account management facility through customer portal login.
7. Fast approval within a few minutes of application for eligible candidates.
8. Disbursal of the loan shortly after its approval.
Before applying for a two wheeler loan in Mumbai, you must know the eligibility requirements that you need to meet.
Two Wheeler Loan Eligibility Criteria
Individuals need to qualify the following common requirements to be eligible to apply for a two wheeler loan in Mumbai.
– Age in the defined limit
– Income as per the city of residence
– Either salaried or self-employed
– Minimum 3 years of business vintage for self-employed
– Minimum 1 year of work experience for salaried
– Residential Indian citizenship
The lender may ask you to meet additional criteria as well based on your financial profile.
Documentation for Two Wheeler Loans
During application, individuals also need to complete paperwork for the advance, which include but are not limited to the following.
– Proof of identity
– Proof of address
– Income proof based on one’s occupational profile
– Proof of business existence or employment
– Residential status proof
Once you have arranged all the necessary documents, you can proceed to apply for your bike loan in Mumbai with your selected lender. Choose to send your loan application online as it fastens the overall loan processing by eliminating any redundant steps.
You can simply visit your lender’s website and fill up the application form with necessary details accurately. Complete your application by submitting the form along with all the necessary documents as asked for by your lender. Use a two wheeler loan calculator to determine how much you should borrow based on your income and affordability. Several lending institutions provide two wheeler loans in Mumbai. It is thus also crucial that you compare among available financiers before finalising your loan option to go for.