Sports bikes, also known as superbikes, have a dedicated fan base of enthusiasts who prioritise performance, and are attracted to the high-speed capabilities of these motorcycles. These riders crave the thrill of pushing their bikes to the limit. That’s why sports bikes are designed for high performance and are equipped with powerful engines and advanced suspension systems. They offer excellent acceleration and high top speeds, making them ideal for those who enjoy the feeling of wind on their face.
However, riding a sports bike is not just about speed and performance but also about comfort and adventure. Thanks to their advanced braking and cornering systems, they are designed to provide a smooth and enjoyable riding experience, even on long trips. However, all of this comes at a premium price tag. Sports bikes are more expensive than regular bikes, and owning one requires substantial money to be paid upfront.
As a result, many sports bike enthusiasts opt for a two wheeler loan to purchase their desired model. This allows them to finance the purchase and make smaller, more manageable payments over time. The cost of purchasing a sports bike can range widely, with prices starting at a minimum of ₹2,00,000 and potentially reaching up to ₹20,00,000 or even higher. However, for enthusiasts who may not have the financial means to purchase a sports bike outright, a two-wheeler loan can make it possible to buy the desired bike in instalments.
Sports bike loans in 2023
There is a high demand for sports bikes in India, and manufacturers focus on producing high-end models. As a result, many lenders offer loans to purchase sports bikes. These loans can be more expensive than regular two-wheeler loans due to the higher cost of sports bikes. Furthermore, the interest rates for sports bike loans offered by different lenders can vary, and they may be higher compared to regular two-wheeler loans. Interest rates for sports bike loans can range from 6.75% to 28% per annum, depending on the loan amount and the terms and conditions of the loan.
Additionally, the loan tenure for sports bike loans may be longer than regular two-wheeler loans to account for the higher bike cost. The monthly instalments, or EMIs, for sports bike loans, will also be higher due to the larger loan amount. Also, the loan tenure will affect the EMI for a sports bike loan. For example, a longer loan tenure will result in lower EMIs, but it will also mean paying more in interest over time. Furthermore, when you opt for a sports bike loan, you will also be charged some processing fees, which can vary depending on the lender. This fee should be taken into account when comparing loan options.
Sports bike two-wheeler loan eligibility criteria
When considering obtaining a two-wheeler loan for a sports bike, it is important to understand the requirements and bike loan eligibility criteria to get the loan. Determining if you qualify for a loan is the initial step in obtaining funding from your chosen lender. The bike loan eligibility criteria can vary among lenders, but generally, most lenders in India adhere to the following criteria.
Bike loan eligibility criteria for salaried and self-employed applicants
When applying for a sports bike loan as a salaried individual, you must meet certain bike loan eligibility criteria to be eligible for the loan. These include:
1. Age: The applicant must be at least 21 years old at the time of applying for the loan and not exceed the age of 65 years at the time of loan maturity. This age limit may vary depending on the lender.
2. Income: The minimum annual income requirement for salaried individuals is at least ₹3 Lakhs per annum.
3. Work experience: Most lenders require that the applicant have at least one year of work experience. This requirement is to ensure that the applicant has a stable source of income and can repay the loan.
4. Loan amount: The applicant can typically borrow up to 100% of the vehicle’s on-road price. This means that the loan amount can cover the entire cost of the bike, including RTO and insurance charges.
The following bike loan eligibility criteria typically apply to self-employed individuals looking to apply for a two-wheeler loan.
1. Age: Self-employed applicants must be at least 21 years old at the time of application and should not be older than 65 years when the loan matures.
2. Income: The minimum annual business income requirement for self-employed individuals is at least ₹3 Lakhs per annum.
3. Loan Amount: The loan amount can cover up to 100% of the on-road cost of the vehicle, including taxes, insurance and registration fees.
4. Work Experience: Self-employed applicants must have a minimum of one year of financial records of their business. This demonstrates that they have a stable income and can repay the loan.
Factors that affect two-wheeler bike loan eligibility
- Income: Your income will affect the terms of your loan, such as the EMI and repayment tenure. Higher income may result in a higher loan amount at a lower interest rate.
- Credit score: When applying for a two-wheeler loan, lenders and financial institutions will check your CIBIL score to determine your creditworthiness. While a good CIBIL score will attract a low interest rate on your two-wheeler loan, a low CIBIL score may lead to the denial of your application.
- Area of residence: Living in a metro city may make it easier to get loan approval.
- Employer: Working for an established company makes it easier to get loan approval and avail of better loan terms.
- Job stability: Lenders will look at your work experience and stability in holding a job when evaluating your loan application. Lack of job stability may result in a higher interest rate.
- Existing debt: High existing debt may lower your chances of approval, as lenders may be concerned about your ability to repay all loans.
Documents required for sports bike two-wheeler loan
Salaried employees applying for a loan will need to provide the following documents.
- Proof of residential address (such as a utility bill or lease agreement) to confirm where you live.
- Proof of identity (such as a government-issued ID or passport) to confirm your identity.
- Recent bank statements to show your current financial situation and history of transactions.
- Form 16, a document that contains information about your income, taxes, and deductions.
- Salary slips for the last three months to confirm your income.
Self-employed individuals applying for a loan will need to provide the following documents.
- Recent bank statements to show your current financial situation and history of transactions.
- Proof of residential address (such as a utility bill or lease agreement) to confirm where you live.
- Proof of identity (such as a government-issued ID or passport) to confirm your identity.
- Income Tax Returns for the last two years to confirm your income and financial stability.
After verifying your bike loan eligibility and gathering the necessary documents for a two-wheeler loan, you can utilise a bike EMI calculator. This allows you to accurately calculate the monthly instalment you will be required to pay on your loan. Doing so will help you plan your budget, and gives you an idea of the total amount you need to repay, including interest and other charges.