Are you thinking to buy a motorcycle of a particular choice for a daily commutation purposes? But what if you have a limited budget and cannot afford to lay your hands on a brand-new motorcycle? Well, in that case, a good-conditioned second-hand bike will do an impressive job for you. And especially when you have the option of financing a particular brand of the motorcycle without facing any hassle.
A used bike is an ideal option for individuals running low on budget and having no option left but to buy an already-run motorcycle. It happens when you cannot afford to buy an expensive new bike despite knowing all the new functionalities and technicalities within the vehicle.
Despite that several platforms available online offer you a high-quality used motorcycle of Hero Motocorp or any other brand at a suitable price. You can check motorcycle value on a reliable platform, get to know its condition, take a test ride, ask for all the original documents, and do the inside inspection.
Now coming to the financing option when you think of buying a used motorcycle. There are several things you must know before heading towards a loan option for a second-hand bike. It is essential to know about the eligibility criteria, things to keep in mind, know how to apply for a loan, the document you need while applying, and the reason to opt for a used motorcycle loan option.
So, without any further ado, let’s get started on the same.
Key features of a second-hand motorcycle loan option
There are essential features of a second-hand financial option available in India that might be different from a loan vehicle loan option.
- Loan amount: The average loan amount for a second-hand two-wheeler in India comes around to INR 10 Lakhs. This is the maximum amount that one can borrow based on the terms and conditions and after meeting the necessary eligibility criteria. However, this loan amount might differ from lender to lender
- Rate of interest: Generally, used motorcycle loan offers have low-interest rates compared to a new vehicle loan. It is due to the fact that the loan amount for an already-used motorcycle is on the lower side. And such loan offers are meant to help people obtain their choice of vehicle within a minimal budget.
- Time duration: The maximum tenure of applying for a second-hand motorcycle loan appears to be 5 years.
- Age of borrower: It is essential matter that a borrower looking to apply for a second-hand bike loan must be between 21 to 65 years of age.
- Income details: Any individual looking forward to applying for a second-hand bike loan must be earning a fixed monthly income with valid proof of the same.
- Processing fee: There might be a processing fee charged by the second-hand bike loan lender that differs as per the particular loan amount. Thus, you can check with the lender and calculate the exact processing fee.
- Pre-closure: It is essential to carefully read the pre-closure terms and conditions of a loan if you are planning to repay well before the time.
Important things to keep in mind while financing a used motorcycle
Before applying for a second-hand bike loan, you must be aware of a few essential things that are as follows:
- Your budget: First and foremost thing you must consider is your budget to buy a particular choice of use motorcycle. Every single person has a specific budget limit under which he/she looks for an ideal motorcycle and accordingly applies for a loan. Therefore, you must do the bike valuation online to know the exact price and apply for a loan. Another thing to consider is the amount of EMI that you have to pay every month and that must not exceed your regular monthly income.
- A credit score in profile: It is imperative to check your credit ratings in the profile before applying for a used bike loan. Generally, lenders look for your credit score to ascertain your ability to repay the loan on time. Therefore, you must be having more than the average credit score in the profile to get seamless loan approval.
- Compare loans first: Several loan options are available to best finance your selected choice of used motorcycle. But you need to compare the loan offers based on terms and conditions, processing fees, rate of interest, and other such factors.
- Find a trusted lender: There are several lenders available online that are ready to offer you a used motorcycle loan at the minimal possible interest rate. But you need to compare the selected choice of lenders before applying with an ideal one.
- Go for the digital loan option: The best way to apply for a used motorcycle loan is online and that too without leaving the comfort of your home. Digitally, you will come across a wide range of loan options that you can select and apply accordingly.
Eligibility criteria you must know of used bike loan
Applying for a second-hand motorcycle requires you to meet the eligibility criteria based on the following few points.
- You must be aged between 21 to 65 years.
- You must be having a fixed monthly income with valid proof.
- Your credit score must be more than the average.
Steps to follow while applying for a second-hand two-wheeler loan
It is imperative to follow a step-by-step process in terms of applying for a used motorcycle loan.
- First, select the bike that you want to buy and do the valuation online.
- Choose a particular choice of lender to apply for a loan.
- Inquire about the loan process, fill out the application form, and apply for the same.
- Attach the relevant documents and wait for approval.
- Once the lender receives your application, he will review the same and provide you the approval accordingly.
The document you require for the loan purpose
There is a specific list of documents you require to apply for a used motorcycle loan from any reliable lender.
- Identity proof
- Address proof
- Income proof
- Credit score report
- Bank statement
Why should you go for the second-hand bike finance option?
Now that you have become aware of the ins and out’s of a used motorcycle loan facility. Next to know are the reasons to apply for a loan while buying a second-hand motorcycle of your choice.
- First, you will have to pay the lowest possible down payment for the second-hand motorcycle even while financing from a reliable lender.
- You will experience repayment flexibility with the advantage to make payments in small equal parts monthly.
- The interest rate will be on the lower side compared to a loan facility available for a new vehicle.
- No collateral is required from your side. So, you need not arrange any sort of personal security against the loan offer.
Buying a second-hand bike is a good and cost-effective option for you to meet your riding requirements and become an owner of a vehicle. With a used motorcycle loan facility, you will get the convenience to buy the same in the shortest possible time and in a budget friendly manner.