While buying bikes via external finance options has become popular, you still have to meet certain age and income parameters to qualify for such options. In other words, most lenders place the age eligibility criteria at 21 years and fix a minimum monthly income requirement for the loan. Thus, if you’re an 18-year-old student, you won’t qualify for the loan.
However, bikes are extremely popular in this intermittent age category of 18-21 years. Bikes are the first choice for college students travelling to institutions far from home. They help eliminate any possible delays associated with public transport while instilling a sense of freedom and independence in the individual.
But students in this age category are not gainfully employed. Thus, purchasing a two-wheeler would mean either asking their parents to fund the purchase or applying for a loan. However, as already stated, banks and NBFCs have income requirements for loans – requirements that students cannot meet. To help end this deadlock, lenders have introduced a special category of student bike loans dedicated to young college-goers. If you’re wondering ‘what’s a student bike loan?’ and ‘how does it work?’, this comprehensive guide is just what you need!
Features and Benefits of a Student Loan
Before you apply for a student bike loan, it is important to understand the features and benefits of such loans. Here’s a quick overview that will help you gauge these features and benefits.
Co-Applicant Required – Lenders will need a guarantor when applying for a student bike loan, as most college students don’t have a steady or reliable source of income. Additionally, the person you list as your co-applicant or guarantor should have a stable source of income and a good credit score.
Manageable Income Requirements – While the person you pick as your guarantor needs to have job stability, their income need not be very high. Most lenders cap income requirements for the guarantor at reasonable limits.
Comfortable Repayment Tenures – Since lenders understand that the EMI burden of a student bike loan can be difficult to manage, they ensure that the repayment terms remain convenient. Thus, you can conveniently repay your student bike loan over three years.
Pocket-Friendly Bike Loan Interest Rates – High bike loan interest rates often deter applicants from opting for a two-wheeler loan. However, this is not an issue with a student bike loan, as you can enjoy nominal interest rates starting from just 8%. Additionally, if your guarantor has a good CIBIL score, you might also enjoy a discount on the stated rate.
Up To 100% Financing – Some lenders offer student bike loans that cover the entire cost of the two-wheeler. In other words, if you opt for such loans, you won’t have to worry about depositing a minimum down payment for the bike.
Easy Application, Quick Processing – You can apply for a student bike loan via the lender’s website, side-stepping the need to visit a brick-and-mortar office. Additionally, most student bike loan applications are fast-tracked and processed in just a matter of three days. This ensures you have the funds needed for the purchase at the earliest!
No Choice Restrictions – You have free rein over the type of bike you wish to purchase with the loan amount. Thus, whether you want a simple mileage bike or an eye-catching sports bike, you can fund it with your student bike loan.
Unsecured Loans – You won’t have to put down collateral to avail of such loans. However, it should be noted that your guarantor acts as a safety net for the loan. If you cannot pay for the loan, your guarantor will have to step in and repay the loan amount.
Eligibility Criteria
As you have seen from the features listed above, student bike loans are slightly different from regular two-wheeler loans. For starters, they have a primary applicant and a co-applicant. This is why they also have slightly different eligibility criteria that are specific to each of the two categories. While these criteria can vary from lender to lender, we’ve collated a common eligibility checklist for you to review.
Eligibility Criteria for the Applicant:
- The applicant should be at least 18 years old.
- The applicant should be a student.
- The applicant should have a permanent residential address.
Eligibility Criteria for the Co-Applicant:
- The co-applicant can be a salaried employee or a self-employed person.
- The co-applicant should have a stable income source and the documents needed to show income stability.
- The co-applicant should have a credit score of 700 or above.
Documents Required
Much like the eligibility checklist, the document list for a student bike loan is also category specific. In other words, the applicant’s document list will vary from that of the guarantor or co-applicant of a student bike loan. We’ve simplified this for you below.
KYC Documents Required for the Applicant:
- Proof of identity (copies of the applicant’s Aadhaar Card, Passport, Voter’s ID, etc.)
- Proof of address (copies of the applicant’s Aadhaar Card, Passport, Voter’s ID, bank passbook, utility bills etc.)
- Student ID card.
As a student, the applicant will not need to furnish any income-proof documents for the loan. This burden falls on the guarantor of a student bike loan.
Income Proof Documents Required for Salaried Co-Applicants:
- Pay slips from the last 6 months.
- Bank statements from the last 6 months.
Income Proof Documents Required for Self-Employed Co-Applicants:
- ITR records for the last two years.
- Bank statements of the previous year.
- Proof of business documents like deeds or a business registration certificate.
How to Apply for a Student Loan Online?
Now that you’ve reviewed the benefits of a student bike loan, its eligibility window and its document list, it’s time to find out how to apply for the loan. Applying for a student bike loan is fairly simple since the application process is no different from that of a regular loan. Here’s how you can go about the process.
Step 1: Compare Bike Loan Interest Rates – This step is crucial to ensure you get a student bike loan at the best rates. You can check lender websites to find out their current student bike loan interest rates or browse through aggregator websites that generally have such information coherently listed.
Step 2: Visit the Lender’s Website – Once you’ve compared bike loan interest rates and picked a lender, it’s time to fill up the application form. You can do so simply by clicking the ‘Apply Now’ option on the lender’s student bike loan application page.
Step 3: Upload the Necessary Documents – After you’ve filled out the form with your KYC details, you will need to scan and upload all the required documents for the loan. This includes your KYC documents and your guarantor’s income proof documents.
Once that’s done, you must wait for the lender to verify the form and documents. The verification period can last anywhere between 24 hours and three days. After it ends, the loan sanction letter will be sent to your email ID, and the funds will be disbursed to your selected bike dealer.
Another affordable and pocket friendly option for students, when in need of money to buy a two wheeler is to buy a second hand bike with easy second hand bike loan option. These days, there are many second hand bike providers and an equal number of players banks and NBFs who finance your second hand bike purchase.
Wrapping It Up
With this comprehensive guide, you know that buying a bike during college doesn’t have to be financially draining. You can easily avail of a student bike loan and make your commute to college easy and convenient. By opting for a student bike loan from a leading lender like Bajaj Markets, you can transform your dream of owning a bike into reality without having to shoulder excess EMI burdens. Thanks to the nominal bike loan interest rates and three-year tenures, you can apply for a student bike loan from Bajaj Markets without worrying about repayment woes.