There is a huge craze for bikes or two wheelers among students in India. But most of the students do not have their own money to buy a bike or scooter. But the question here is, can a student apply for a two wheeler loan? The answer is yes. But there are certain terms and conditions without following which he cannot apply. Many NBFCs including banks now provide special two wheeler loans for them.
Know these terms and conditions before applying
To apply for a two wheeler loan, you must provide a co-applicant or guarantor who has a good credit score and stable employment. That is, he has his own business or is employed. A good credit score is usually 700 or above. According to the ICICI director, having a guarantor/co-applicant will compensate in case of non-payment. Apart from this, you must be a resident of India. You must be above 18 years of age. You must have a permanent address before applying.
There is no restriction on the type of two-wheelers
Document verification usually takes up to three days. On average, the loan period for student applicants is extended up to three years only. According to Tata Capital, the loan has no restrictions on the type of two-wheelers that can be purchased by the student. From superbikes to electric mopeds, the loan can finance any purchase. Most two-wheeler loans for students are a type of unsecured loan. Hence, no security is required.
Co-applicant or guarantor will have to provide these documents
As KYC documents, you should have passport, Aadhar card, voter ID, driving license, etc. As address proof, you should have bank passbook, passport, utility bill, etc. If the co-applicant is self-employed, then income tax returns of the last two years, bank statement of the last one year, business proof will be required. If the co-applicant gets salary i.e. is employed, then pay slip of the last six months and bank statement of the last six months may have to be given.
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