E-Bike Loans: Benefits, eligibility & documentation

The shift towards sustainable living has seen a remarkable uptick in the popularity of electric vehicles (EVs), with electric bikes leading the charge. As the world gravitates towards greener solutions, the demand of an Electric Bike Loan for environmentally conscious commuters has become popular. This financial product not only facilitates the ownership of electric two-wheelers but also promotes a cleaner, greener environment. Let's dive into the nuances of how EV bike financing works and the benefits it brings to the table.

How does an Electric Bike Loan work?

An Electric Bike Loan is essentially a financial instrument tailored specifically for the purchase of electric two-wheelers.

Much like any other loan, it involves borrowing a sum of money from a financial institution, which is then repaid over a period of time, along with interest. The distinctive feature of an EV bike financing option is its focus on eco-friendly vehicles, making it an ideal choice for individuals looking to reduce their carbon footprint.

Features and benefits of EV Two-Wheeler Loan

Electric Bike Loans come with features and benefits designed to make your transition to electric mobility as smooth as possible.

• Competitive rate: With Axis Bank’s Two-Wheeler Loan, you can avail a loan for an EV bike at a competitive rate, making it a smart financial decision as well.
• Flexible tenure: With tenures up to 48 months, you have the flexibility to choose a repayment schedule that works best for your financial plan.
• Minimal documentation: The hassle-free documentation ensures that you can focus more on selecting the perfect ride and less on the paperwork.
• Pocket-friendly EMIs: Starting from as low as ₹25,001/-, the loans are designed to be light on your pocket, ensuring that you can easily budget for your new electric bike.

EV Two-Wheeler Loan eligibility

To qualify for an EV Bike Loan from Axis Bank online, you'll need to meet the following criteria:

• For salaried individuals:

• Age: You should be between 21 to 58 years old.
• Minimum income: Your annual income should be at least ₹1.44 lakhs.
• Employment status: A minimum of 1 year of experience is expected.
• Bank statement: You must provide your bank statement for the last 3 months as proof of stable financial activity.

• For self-employed individuals:

• Age: The age criteria for self-employed individuals is a bit broader, from 21 to 65 years.
• Minimum income: An annual income of ₹2.5 lakhs is the threshold here.
• Business stability: You should have been involved in the same line of business for at least one year.
• Bank statement: Similar to salaried applicants, a 3-month bank statement is required.

Steps to check your eligibility for an Electric Two-Wheeler Loan

To check your eligibility for an Electric Two-Wheeler Loan, you can follow a few simple steps:

Step 1. Get started: Visit Axis Bank's website and find the section for bike loans to get moving on your application.

Step 2. Begin application: Click 'Apply Now' to kick off the process.

Step 3. Share your details: Provide essential details like your mobile number and identification (date of birth or PAN) to establish your identity.

Step 4. Pick your bike: Choose the electric bike you want by selecting your location details and preferred model.

Step 5. Tell us about you: Enter your personal information and upload the necessary documents as required.

Step 6. Plan your loan: Decide on the amount you need to borrow and the time you'd like to take to pay it back.

Step 7. Submit and go: Double-check all the details for accuracy, then submit your application to take the next step towards owning an electric bike.

EV Two-Wheeler Loan documentation

When preparing to apply for an EV Two-Wheeler Loan, gathering the necessary documentation is a crucial step.

• General documents:

• Application form: This is your official request for a loan.
• Proforma invoice: A preliminary bill of sale sent to buyers in advance of a shipment or delivery.
• Passport-size photograph: Recent photographs of all applicants.
• KYC documents: These are needed to verify your identity and include documents such as a passport, driver's licence, birth certificate, or PAN card.

• Documentation for salaried individuals:

• Income proof: Recent salary slips and Form 16 are required.
• Bank statements: The latest 3 months of bank statements to demonstrate financial stability.

• Documentation for self-employed individuals:

• Office/business proof: Any of the following—telephone bill, electricity bill, shop & establishment act certificate, SSI or MSME registration certificate, sales tax or VAT certificate, current account statement, registered lease with other utility bills.
• Income proof: The most recent Income Tax Return (ITR) filed.

EV Two-Wheeler Loan fees and charges

When considering an EV Two-Wheeler Loan, it's important to be aware of the fees and charges that will apply.

• Rack interest rate: For loans with a tenure of up to 36 months, the minimum interest rate is the 1 Year MCLR at 9.25%, with a spread over MCLR up to 15.75%, leading to an effective Rate of Interest (ROI) ranging from 15.50% to 25.00%. For loans exceeding 36 months, the effective ROI remains between 15.50% and 25.00%.
• Loan processing charges: Up to 2.5% of the loan amount (LA) is charged as the processing fee.
• Stamp duty & other statutory charges: These are charged as per actual costs incurred.
• Documentation charges: A flat fee of ₹750 is charged for loan documentation.
• PDD collection charges: Post-disbursement documentation (PDD) incurs a charge of ₹200.
• RTO charges: Charges related to the registration of your two-wheeler with the Regional Transport Office (RTO) vary based on location and vehicle type.

Charges post-loan disbursement

Any actions taken after your loan has been disbursed, such as bounced cheques or document requests, may incur additional fees.

Premature closure charges

Settling your EV Two-Wheeler Loan earlier than the agreed period can attract charges to offset the lender's lost interest income.

Conclusion

Embracing an electric two-wheeler with the help of a loan can be a smart financial move towards sustainable transportation.

With loans starting at ₹25,001/- and flexible tenure options ranging from 12 to 48 months, financial accessibility is within your reach. Moreover, with the potential for up to 100% on-road funding, the Axis Bank Two-Wheeler Loan offers a compelling option for those looking to finance an EV bike. This loan package is designed to ease the transition to eco-friendly commuting, ensuring that your journey to a greener future is as smooth as the ride on your new electric two-wheeler.

Also Read: A brief guide on how to buy a bike on EMI

FAQs

What is the maximum loan value that I can get for an Electric Bike Loan?

Axis Bank offers up to 100% funding on the on-road price of the electric two-wheeler, depending on your profile and the loan scheme you opt for.

Do I need to hypothecate the vehicle in case of an Electric Scooter Loan?

Yes, when you take an Electric Bike Loan from Axis Bank, the vehicle needs to be hypothecated to the bank. Hypothecation means that the scooter will serve as collateral for the loan, and you cannot sell the vehicle until the loan is fully repaid and the bank issues a No Objection Certificate (NOC).

How do I get to know the list of approved distributors for Two-wheeler Loan?

To find out about the list of approved distributors for a Two-Wheeler Loan from Axis Bank, you can contact their customer service. They can provide you with all the details regarding their partner dealerships. The customer care numbers are 1860-419-5555 and 1860-500-5555.

What is the process for applying for an Electric Bike Loan online?

Applying for an Electric Bike loan online with Axis Bank is straightforward. You can apply through the website, Axis Bank's mobile app, or by visiting a branch. The process involves submitting your personal and financial details, selecting the bike, and uploading the necessary documents. The online application can be completed from anywhere, offering convenience and quick processing.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author 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