Whether it is first-time bike owners or those looking to buy a premium bike model on a limited budget, second-hand bikes have remained preferred options for many. Second-hand bikes allow you to bypass budgetary constraints and ensure zero compromises regarding your choice.  Additionally, with the readily available second-hand bike loans, financing a used bike has become all the more pocket-friendly. 

While most buyers are familiar with the nitty-gritty of new bike financing schemes, there still seems to be some confusion about second-hand bike loans. To end your queries about used bike loans, we’ve debunked the many myths associated with these loans. Read on to find out how you can purchase a used bike with a second-hand two-wheeler loan.

What are the Eligibility Criteria for a Second-Hand Bike Loan?

Getting finance for your second-hand bike is pretty simple, thanks to the basic eligibility criteria provided by most lenders. You can purchase a used bike with a second-hand two-wheeler loan if:

• You are 21-65 years of age
• You are a salaried or self-employed individual with a stable income
• You have a minimum monthly income of ₹12,000
• You have a good credit score (preferably 750 or above)

While these are the general eligibility criteria, the specifics may vary from one lender to another. For instance, some lenders cap the minimum age for second-hand bike loans at 18 rather than 21 years.

What Documents Will I Need to Apply for a Second-Hand Bike Loan?

Now that we’ve covered the eligibility criteria for used bike loans, it’s time to focus on the documents required and how to apply for a second hand bike loan. Here’s a document checklist you can keep handy.

Identity Proof – For photo-ID verification, you will need to submit copies of your Aadhaar Card, PAN Card, Voter’s ID, Passport or driver’s licence, and two recent passport-size photographs. 

Address Proof – You can submit copies of your Aadhaar Card, PAN Card, Voter’s ID, Passport, Ration Card or any utility bills as valid address-proof documents. 

Income Proof – To prove your income and employment status, you must submit Form 16, recent salary slips, the latest ITR and bank statements for the last six months.

Additional Documents – You must also present a vehicle quotation document when applying for a second-hand bike loan. Some lenders may also require a copy of the used bike’s registration certificate. 

If you have the above list of documents, you can apply for a second-hand two-wheeler loan easily.

Where Can I Get a Second-Hand Bike Loan?

You can finance your second-hand bike with any one of the following loan options.

• Bank Loans – Most banks offer new and used bike loans at competitive interest rates. As a privileged bank customer, you might also have access to pre-approved loan offers. 
• Dealership Finance – You can approach second-hand bike dealerships that offer such loans. Dealers determine eligibility criteria and interest rates for such loans based on your credit profile.
• OEM Finance – Some OEM companies partner with banks and NBFCs to offer lucrative second-hand two-wheeler loans to customers. 
• Personal Loan – Another alternative is a personal loan, where you can use a part to finance your second-hand bike and the rest to meet other repair-related expenses.  

Why Should I Opt for a Second-Hand Bike Loan?

Given the simple eligibility criteria and basic documentation process, you can easily secure a second-hand bike loan to finance your used bike purchase. Here’s why opting for such financing options is a good idea.

Minimum Downpayment – Purchasing a second-hand two-wheeler with your savings can compromise your current liquidity balance. You can avoid this with a second-hand bike loan that offers high-value financing options for used bikes. Depending on the lender you pick, you can secure a loan amount of up to ₹10 Lakhs. 

Payment Flexibility – The best part about a second-hand bike loan is that you can repay it at your convenience. Most lenders offer 12 to 60-month windows to customers for completing bike loan EMI payments. You can pick a favourable repayment tenure after factoring in your existing financial commitments to avoid overburdening your pockets. 

Feasible Interest Rates – To make these loans pocket-friendly, most lenders cap interest rates at a reasonable level. These bike loan interest rates vary from one lender to the next and can be reviewed on the lender’s official website. Additionally, you can reap the benefits of lower interest rates if you have a good credit score. 

Privileged Offers – Most lenders have special offers – like lower interest rates or processing fee waivers – for their privileged customers. You should check out these offers before applying for a second-hand bike loan.

No Collateral Needed – You don’t need to put down collateral to avail of a second-hand bike loan. Such loans are sanctioned against the hypothecation of the purchased second-hand two-wheeler and thus don’t need you to pledge additional assets. 

A Boost to Your Credit Score – By availing of a used bike loan and paying its EMIs on time, you can effectively boost your credit score. This will make it easier for you to secure credit in the future and enjoy lower interest rates. 

What Should I Remember Before Applying for a Second-Hand Bike Loan?

Factor in Add-On Charges – Apart from the principal amount and interest, you will also have to pay certain overhead charges when applying for a second-hand bike loan. Thus, before picking a second-hand bike loan, you should review the processing fees, pre-payment charges, late fees, and other charges levied by lenders. 

Compare Second-Hand Bike Loans – You can use bike EMI calculators to compare interest rates and loan terms offered by different lenders. Doing so will help you pick a scheme that best suits your needs. As mentioned earlier, you might also have pre-approved offers from your bank. Remember to check out these offers before you apply for a used bike loan with another lender. 

Budget Your Expenses – Picking the right loan amount and repayment tenure can be tricky. This is where a bike EMI calculator comes to your rescue by helping you budget your expenses better. While shorter repayment tenures mean lower interest expenses, picking such short tenures can overburden your pockets, with EMI payments exceeding your monthly affordability threshold. You can use a bike EMI calculator to run multiple amounts and tenure combinations and get precise EMI results. This will help ensure that you get adequate funding for your second-hand bike purchase without EMI payments straining your pockets. 

How Can I Apply for a Second-Hand Bike Loan?

Offline: You can visit your nearest bank branch to avail of a second-hand two-wheeler loan. Fill out a second-hand bike loan application form and submit the documents required for the loan. Next, wait for a bank representative to brief you on the next few steps. 

Online: You can save yourself a trip to the lender’s office by applying for a second-hand bike loan online. All you have to do is visit the lender’s website, fill out the second-hand bike loan application form and upload the necessary documents. Post verification, the lender will approve and sanction your loan. 

Conclusion

A second-hand bike loan can help fulfil your dream of owning a two-wheeler without draining your pockets. If you opt for a used bike loan from a trusted lender like Bajaj Markets, you get to reap the benefits of low interest rates, quick approvals, nominal processing charges and flexible repayment tenures.