Youngsters all over the world have a passion for bikes and even while as students they want to purchase their dream bike to flaunt the lifestyle in school or college. Bike manufacturers churn out new models regularly to cater to the aspirations of youngsters by launching stylish motorbikes of different segments and price range. These bikes are manufactured according to the taste and budget of the students who come from the middle class and rich families.
India is one of the largest manufacturers of motorbikes in the world as it is a popular mode of transport for youngsters and daily commuters. Several international bike manufacturers have set up base in India and have been producing bikes that suit Indian road conditions. With the ever-increasing demand for different bikes amongst the student community in India many banks have introduced student loans for two-wheelers to make it easier for the students to buy a bike of their choice. These loans are offered under special conditions keeping in mind the students are not earning members of the family. These loans enable students to choose from the best budget bikes in India.
Several banks and private lenders offer bike loan to students if they meet certain eligibility criteria. There are several factors taken into consideration by the banks and private lenders for providing a student with a bike loan.
- Applicant must be a student who has attained the minimum age of 18 years to qualify for a driving license.
- The student must apply for a bike loan with a co-borrower/guarantor.
- The co-borrower should have a steady income and must provide valid income proof.
- The co-borrower should have a good credit score with CIBIL and other credit rating agencies.
- The student should have a stable residential address as banks are stingy about it.
- The student must provide proof of identity in the form of Aadhaar card, Driving License, Passport, Voter ID card.
- Salaried co-borrower must provide last six months salary slips and last six months bank statements.
- Self-employed co-borrower must provide last three years income tax returns and last one year bank statement.
- The guarantor must also have a good credit score and provide income proof as he is the one who is supposed to repay the loan in case the student defaults on payments.
- A good credit score enhances your chances of securing a bike loan for students as it is used to by the bank or private lender to assess your repaying capacity and creditworthiness. Good credit history is certainly a plus point.
- Down payment also plays a significant role in securing a student loan for a bike and it is advisable to make maximum down payment for your bike loan. Higher down payment for your bike increases the chances of loan approval considerably.
The two most important factors which banks consider before sanctioning a bike loan for students are age and family background of the applicant. For students pursuing education, it becomes imperative that the earning member of the family applies for the loan as co-borrower.
Students doing a part-time job while studying have a higher chance of getting a bike loan from the bank as they can submit proof of income and fit into the eligibility criteria. Students whose parents have a steady income are also given preference when it comes to availing a bike loan.
Almost every bank in India offers student loan for bikes if you fulfill the minimum income requirement. Bike loans for students get quick approval and don’t require any kind of collateral security. You can opt for any type of two wheeler depending upon your repaying capacity.