Buying a new bike is a stepping stone to adopting a more convenient lifestyle. If you don't have sufficient funds, there's an easy solution; you could pay for your bike in Equated Monthly Installments (EMIs). Let’s understand how to buy bike on EMI.
How to buy a bike on EMI
There's a pretty simple solution to the challenge - how to buy a bike on EMIs. Consider taking a Two Wheeler Loan, a smart alternative to making a lump sum payment. This a secured loan sanctioned by a bank. It allows you to pay for your bike in monthly instalments for a fixed tenure.
Steps to buy a bike on EMI
1. Check eligibility for buying a bike in instalments
Eligibility depends on several factors, such as your age, income bracket and credit score. You must be able to provide income proof for at least three months, demonstrating your ability to repay the loan in instalments.
2. Calculate EMI using a Two Wheeler Calculator
To plan your loan efficiently, utilise a Two Wheeler EMI Calculator. Planning to buy your bike using an EMI calculator is simple. Just input various permutations and combinations of the loan amount, tenure and rate of interest. This will help you arrive at an EMI that aligns with your cash flows.
3. Apply for Two Wheeler Loan
You can apply at the bank’s branch by filling out the application form for a Two Wheeler loan. Once you submit all the required documents for address proof and income proof, the bank will take a couple of days for verifying them. Once the documents are verified and your loan is approved, the bank will issue you the sanction letter.
If you are wondering how to buy bike online on EMI the answer is simple. You can apply for a Two Wheeler Loan online via Internet banking or via your banks’ mobile app. All you need to do is to fill out the application form online.
Benefits of buying a bike on EMI
1. Affordability
By taking a Two Wheeler Loan from your bank, you can pay a small amount each month, which aligns with monthly cash flows. If you're wondering - can I buy bike on no cost EMI - the answer is no. You need to pay interest.
2. Competitive interest rates
If you're thinking - how to buy bike on EMI without interest in India - this isn't possible. You need to pay interest when taking a Two Wheeler Loan. However, the interest rates are competitive, starting as low as 9.25% p.a. at Axis Bank. You can even negotiate for a lower interest rate if have a high credit score.
So get rid of any thoughts on how to buy a bike on EMI without interest, and focus efforts on building a good loan application.
3. Flexible repayment terms
Axis Bank Two Wheeler Loan allows you to select an EMI repayment tenure between 12 and 48 months. This ensures you can structure the loan repayment to suit your budget.
4. Faster approval times
Apply for a Two Wheeler Loan online and expect a quick, seamless approval experience from your bank. With online application, Two Wheeler loans are approved, sanctioned and disbursed fast allowing you to buy your dream vehicle.
5. Up to 100% funding
Axis Bank Two Wheeler offers up to 100% funding of the cost of your bike for amounts lower than ₹1,00,000. Thus, you need not make a down payment when planning this purchase.
Eligibility criteria to buy bikes on EMI
1. Age
- Salaried professionals must be aged between 21 and 58 years
- Self-employed professionals must be aged between 21 and 65 years
2. Credit score
Credit score and credit history play an important role in loan negotiations. You might be able to secure lower interest rates with a credit score of 700 and above.
3. Employment
Both salaried and self-employed individuals must be at their current workplace for a minimum of one year.
4. Monthly income
- ₹12,000 for salaried professionals (₹ 1.44 lakh p.a.)
- Approximately ₹20,833 for self-employed professionals (₹2.5 lakh p.a.)
5. Residence
Your location does play a role in loan eligibility. For instance, those living in metro cities have higher loan approval potential.
Documents required to buy a bike on EMI
Here’s a snapshot of the documents required for buying a two-wheeler on EMI (a scooter or any type of bike):
1. ID proof: Passport / Aadhaar Card / driver's license / Voter ID / GoI issued photo ID / government employee ID
2. Passport-size photographs
3. Employment proof: Latest salary slips (3 months) and Form 16 for salaried professionals / latest Income Tax Return for self-employed professionals
4. Address proof: Passport / Aadhaar Card / driver's license / Voter ID / GoI issued photo ID / government employee ID / gas bill / electricity bill / telephone bill / property tax receipt
Also Read: Axis Bank 24x7 Two Wheeler Loans are easily accessible for new customers too
The takeaway
A Two Wheeler Loan empowers you to buy a new bike without the financial stress that comes with making a lump sum payment. Axis Bank offers competitively priced Two Wheeler Loans, with interest rates starting at 9.25% p.a., and loan amounts starting at ₹25,100. You have the flexibility to repay the loan within 12 to 48 months. Apply online via Internet or mobile banking, and enjoy a seamless application and loan disbursal experience.
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.
