Owning a bike or scooter can give you an unmatched sense of thrill. One of the most significant decisions one may make in life is whether to purchase a two-wheeler or not. By investing in a new car, you’ll be using the money you’ve worked hard for, and you want to know how it’s being put to use. Be vigilant and make sure you don’t miss anything before purchasing your ideal bike or scooter, including the two-wheeler loan documents needed to get a new two-wheeler in India. Continue reading to learn more about the documents needed to finance or borrow a bike, as well as the documents needed to purchase a bike from a dealership.
You must be prepared with several documents before applying for an online motorcycle loan so that you can quickly and easily receive the loan amount. You must have these documents on hand before applying for the two-wheeler loan to retain the trust of your lender.
These documents will enable you to easily purchase your ideal bike in one go. The required documentation varies from case to case depending on several criteria. For instance, the bike loan documentation for paid individuals is different from those for self-employed individuals.
Why Documents Matter in the Loan Process and Justifications for Rejection?
Yes, the majority of loan applications fall short from the outset. Rejection can be caused by several factors, including age, income, bank verifications, and even proof documents that don’t fit the lender’s requirements. You must be aware of the latest developments in the lending industry, conduct your research, compile all the required documents, and then submit your loan application to eliminate any likelihood of delay or rejection.
Various lenders, financial institutions, and NBFCs have different requirements for documents, interest rates, and processing costs. However, a borrower’s KYC document remains the same. A legal obligation known as Know Your Customer (KYC) establishes the borrower’s identity. KYC document includes:
- PAN Card
- Aadhar Card
- Driving License
- Voter Identity Card
Documents Needed for a Motorcycle Loan or Finance
Knowing what documentation is needed when applying for a loan will make the process much easier for you. People who have the proper documentation can frequently sail through the loan application screening procedure and have their applications approved without any problems. So bear that in mind if you’re looking for a loan.
When you’ve made up your mind to buy a bike, you can either pay for it in full upfront or choose to finance it to cover the cost. You should, however, be qualified for a two-wheeler loan, which is determined by factors like your salary, age, etc. Here is a list of the two-wheeler loan documents that you must provide when financing the purchase of a motorcycle
Salaried People
Identity Proof (ID Proof): You must provide ID proof documents, such as a driver’s license, PAN card, Aadhaar card, passport, voter ID, etc., to demonstrate your identity.
Address Proof: You must provide one of the following documents to prove your residence address: a rental agreement, a passport, an Aadhaar card, a voter identification card, etc.
Income Proof: Since the motorcycle loan is based on the income you earn, the lender will require proof of your income. documents such as Form 16, Payslips (Salary Slips), ITRs (Recent Income Tax Returns), etc. A Salary Certificate that clearly states the deductions and the name and designation of the authorized signatory may be required by some institutions.
Bank Statements: To show your income and, if any, deductions, you must produce a bank statement from the previous calendar year.
Passport-size photos: The bank will need a set of passport-size photos to process your loan application.
Self-Employed
Identity Proof: You should present your identity proof documents, such as your driver’s license, passport, voter ID, Aadhaar card, etc.
Address Evidence: You must provide address documentation, such as a rental agreement, voter identification, Aadhaar card, utility bills, gas connection bills, ration card, sale deed, etc., to prove that you are a resident.
Bank Statements: To verify your income and, if applicable, deductions, you must produce your bank statements from the previous three or six months.
Income Tax Returns: For the bank to execute your motorcycle loan application, they will need to see your Income Tax Returns (ITR) for the last three years to determine your income and deductions.
You must provide the necessary quantity of passport-size photos to the relevant bank for them to process your loan application.
Conclusion
Sometimes we might not have enough money to purchase what we desire, whether it be for ourselves or someone else. In such circumstances, people, businesses, firms, and institutions look for funding from lenders.
Even though the procedure is straightforward, getting a motorcycle loan sanctioned can be difficult if you don’t have the right two-wheeler loan documents or meet the wrong eligibility standards. Therefore, it’s important to gain first-hand familiarity with the documents required for any form of a loan.
