Two-Wheeler Loan for Students

The two-wheeler is one of the most desirable modes of transport in India and has become an almost essential component for the daily commute of many people of the country. India is one of the largest producers of two-wheelers in the world and is considered one of the potential markets for small to medium capacity two-wheelers. Many global manufacturers have started operations in India and have designed models apt for Indian roads. With these new models of two-wheelers entering the markets, many banks have also introduced loans for two-wheelers with varying eligibility criteria, to cater to different segments of the target group. The demographics among which two-wheelers are quite popular are students, who usually do not have the finances to purchase a new two-wheeler, due to which, some banks have started offering two-wheeler loans to students under certain circumstances, at competitive interest rates.

Features of the loan

• The minimum repayment period for a two-wheeler loan would be three years for students.

• The requirement for the co-applicants income is not very high.

• The student will need a co-applicant/guarantor to apply for a loan.

• Usually, the banks take up to three days for processing the documents.

• Two-wheelers loans for students are unsecured where no security or collateral is required.

• There is no restriction imposed by the bank on the type of two-wheeler, the student wishes to purchase through the loan.

Eligibility Criteria

The eligibility criteria for providing two-wheeler loans to students have been listed below:

• The minimum age of the applicant must be at least 18 years.

• The student can only apply for this loan along with a co-applicant.

• The co-applicant should have a stable income with valid proof as per the bank requirement.

• The co-applicant should have an excellent credit score.

• The applicant should have a permanent address for applying.

Documentation Required

1. Identity Proof (Aadhaar Card, Driver's License, Voter ID, Passport)

2. Address Proof (Voter ID, Passport, Aadhaar, Utility bills, Bank passbook)

3. Income proof of the co-applicant:

• For Salaried Co-borrower

  • Last six months pay slips.

  • Six months' bank statements.

• Self-employed Co-borrower

  • Income tax returns

  • Bank statements for the last one year

  • Business proof