Two Wheeler Loan Documents – The Necessary Paperwork to Complete for Bike Financing

The easy availability of two wheeler loans has revolutionised how Indians purchased bikes. In fact, thanks to the growing market of used bikes, financial institutions also aid easy financing of second hand bikes against minimal eligibility and document requirements. Today, one can avail a two wheeler loan, whether for the purchase of a new bike or a used one, irrespective of the locality or region he/she resides in.

Availing these loans has only become convenient with non-banking financial companies increasing the total funding value as well as providing loans at high LTVs. For a better understanding, LTV or Loan to Value ratio is the maximum cap to financing available to an applicant as a percentage of the bike’s current market value or resale value. Now, let’s check out the two wheeler loan documents you would need to submit to avail financing without any hassle.

Two Wheeler Loan Documents Needed when Applying

Whether you are availing a bike loan for new bike purchase or a second-hand two wheeler loan, the basic documents required to apply for your advance remain the same. Thus, you would be needed to provide the following two wheeler loan documents for successful funding application.

• Application form

You must provide the application form filled in with accurate personal, employment, and financial details along with other necessary two wheeler loan documents.

• KYC documents

When availing a bike loan, you would need to complete minimum KYC paperwork, which shall include a valid proof of identity and address. In the case of identity proof, documents carrying name and photo identity are eligible, such as PAN card, Voter ID card, Passport, Aadhaar card, and driving license.

For address proof, you need to provide valid documents that carry your present address, such as Aadhaar card, Ration card, Voter ID card, Passport, utility bill, and the likes.

• Proof of employment/business ownership

Based on whether you are a salaried or a self-employed applicant, you must establish your income stability with the help of supporting documents. In the case of salaried class, they can include employee ID, experience certificate, and the likes issued by the employer. For self-employed applicants, the necessary paperwork would include business registration certificate, partnership agreement, MoU, MoA, GST certificate, etc. 

• Income documents

One would also need to establish his/her regular income flow with the help of salary slips for the last 3 months, bank account statements for the last 2 months, ITR, and any other valid income document. For self-employed, financial statements along with ITR and bank account statements serve as suitable proofs.

Additionally, when availing a used bike loan, you must also arrange additional documents for hassle-free financing. They include the following.

• NOC from previous lending institution if the bike was purchased by the previous owner on loan

• Certificate of insurance policy, whether third-party or comprehensive

• The bike’s registration certificate

• Pollution under control (PUC) certificate

Make sure to meet all eligibility requirements and keep the documents handy before applying for a smooth loan application processing.

Also, learn how to avail two-wheeler loans kolkata.