Youngsters all over the world are fond of bikes and even when they want to buy their dream bike to flaunt the lifestyle in school or college. Bike manufacturers regularly produce new models to meet the aspirations of the youth by launching stylish motorbikes of different segments and price ranges. These bikes are manufactured according to the taste and budget of the students who come from middle class and rich families. India is one of the largest manufacturers of motorbikes in the world as it is a popular mode of transport for youngsters and daily commuters. Many international bike manufacturers have established a base in India and are producing bikes suited to Indian road conditions. With the ever-increasing demand for various bikes among the student community in India, many banks have introduced student loans for two-wheelers to make it easier for students to buy the bikes of their choice. These loans are given under special circumstances, keeping in mind that the students are not members of the family. These loans enable students to choose from the best budget bikes in India.
Many banks and private lenders like Muthoot Capital offer 2 Wheeler loan to students upon meeting certain eligibility criteria. Many factors are taken into account by banks and private lenders to provide a student with a bike loan.
1) Applicant must be a student who has attained the minimum age of 18 years to qualify for a driving license.
2) The student must apply for a bike loan with a co-borrower/guarantor.
3) The co-borrower should have a steady income and must provide valid income proof.
4) The co-borrower should have a good credit score with CIBIL and other credit rating agencies.
5) The student should have a stable residential address as banks are stingy about it.
6) The student must provide proof of identity in the form of Aadhaar card, Driving License, Passport, Voter ID card.
7) Salaried co-borrower must provide last six months salary slips and last six months bank statements.
8) Self-employed co-borrower must provide last three years income tax returns and last one year bank statement.
9) The guarantor must have a good credit score and provide income proof as he is the one who is repaying the loan due to the student’s defaults in terms of payment.
10) A good credit score increases your chances of getting a bike loan for students as it is used by the bank or private lender to assess your repayment ability and reliability. Good credit history is definitely a plus point.
11) Down payment also plays an important role in getting a student loan for a bike and it is advisable to make the maximum down payment for your bike loan. The possibility of higher down payment loan approval for your bike increases significantly. The two important factors banks consider before sanctioning a bike loan to students are the applicant’s age and family background.
For students pursuing education, it becomes mandatory that the earning member of the family apply for loan as a co-borrower. Students doing part-time jobs while studying are more likely to get a bike loan from the bank as they can produce proof of income and fit the eligibility criteria. Students whose parents have a steady income are given preference to get a bike loan.
Two ways to avail a student two-wheeler loan
Securing two-wheeler loans for students is quite challenging due to the absence of any permanent source of income. However, there are some special occasions when they can easily avail this type of loan to buy their dream bike.
1. Part-time job while studying
Nowadays, many students prefer to work a part-time job while studying, which increases their chances of getting a two-wheeler loan. This is because they have a regular source of income, and their payments can be used as proof of salary, which can help lenders reach their repayment capacity. Since a student bike loan is an unsecured loan, lenders typically charge higher-interest rates on such loans to avoid the risk of default. Also, if you have taken a loan before, make sure that you have a good repayment history and a high credit score. In this way, you can easily avail this loan at nominal interest rates.
2. Co-applicant/ guarantor
The second way to get a two-wheeler loan is to apply through a guarantor. A guarantor / co-applicant is a person who will have to pay for your loan if you do not have the necessary funds to reimburse it. The guarantor / co-applicant must have a stable job and stable income and the lender must provide a valid income proof. In addition, he / she must have secured credit and CIBIL score, which can help in getting a two-wheeler easily. Almost every bank in India offers student loans for bikes if you meet the minimum income requirement. Bike loan apply online for students get quick approval and do not require any type of collateral security. You can opt for any type of two wheeler depending on your repayment capacity.