Do you want to buy a two-wheeler but are nervous about the financial burden it will puts on you?
Don’t worry, as SBI has got you covered with their Two Wheeler Loan Scheme. With easy and affordable repayment options, SBI Two Wheeler Loan is an excellent way to finance your dream bike or scooter.
In this article, rapidloans.in will provide you with a complete guide to SBI Two Wheeler Loan, including its features, benefits, eligibility criteria, and documentation required.
Why Choose SBI Two Wheeler Loan ?
With the rising prices of two-wheelers, it is becoming increasingly difficult for people to buy their desired bike or scooter.
SBI Two Wheeler Loan offers an excellent opportunity for people to purchase their dream vehicle without worrying about the financial burden. It also offers flexible repayment options that can be customized according to the customer’s needs and budget.
The loan covers the cost of new scooters, motorcycles, mopeds, and battery-operated/electric vehicles of reputed make. With a loan to value ratio of up to 85% of the on-road price of the vehicle, customers can easily afford their dream bike or scooter.
The loan also offers competitive interest rates starting from 11.83% p.a., making it an affordable option for everyone.
Types of SBI Two Wheeler Loans
When it comes to financing your two-wheeler, SBI offers two types of loans – SBI Easy Ride and SBI Two Wheeler Loan Lite. Let’s take a closer look at both:
SBI Easy Ride
SBI Easy Ride is a type of two-wheeler loan that offers a hassle-free and convenient loan application process through the YONO app. Here are some important details about SBI Easy Ride:
- Loan amount: Up to 95% of the on-road price of the two-wheeler
- Repayment tenure: Up to 5 years
- Interest rate: Competitive interest rates based on the loan amount and repayment tenure
- Processing fee: Up to 3% of the loan amount
- Prepayment charges: Nil for loans with floating interest rates
Eligibility: To be eligible for SBI Easy Ride, you need to meet the following criteria:
- You should be an Indian citizen
- You should be between 21 and 65 years of age
- You should have a minimum income of Rs. 1,50,000 per annum
- You should have a savings bank account with SBI
How to avail:
To apply for SBI Easy Ride, follow these simple steps:
- Step 1: Check your eligibility by sending an SMS “PA2W<space><last 4 digits of SBI Savings Bank Account No.>” to 567676.
- Step 2: Login to YONO app.
- Step 3: Click on TAP to APPLY on the offer banner.
- Step 4: Confirm your personal details and enter your current work details.
- Step 5: Select the vehicle and dealer of your choice and enter the dealer quoted on-road price of the vehicle.
- Step 6: Review the details and accept the terms & conditions.
- Step 7: Enter the OTP to complete the loan journey.
SBI Two Wheeler Loan Lite
SBI Two Wheeler Loan Lite is a traditional loan that offers competitive interest rates and flexible repayment options. Here are some of the features of this loan:
- Loan amount: Up to 90% of the on-road price of the two-wheeler
- Interest rate: Starts at 11.83% p.a.
- Repayment tenure: Up to 3 years
- Processing fee: Up to 2% of the loan amount (maximum)
- Prepayment charges: From 3% to 10% of the outstanding principal
To be eligible for SBI Two Wheeler Loan Lite, you must meet the following criteria:
- Age: Between 18 and 65 years
- Income: Minimum net annual income of Rs. 1 lakh
- Credit score: 700 and above
To apply for SBI Two Wheeler Loan Lite, you’ll need to provide the following documents:
- Identity proof (Aadhaar card, PAN card, passport, etc.)
- Address proof (utility bill, rental agreement, etc.)
- Income proof (salary slips, bank statements, income tax returns, etc.)
- Vehicle documents (invoice, registration certificate, insurance, etc.)
Once you’ve submitted the required documents and your application is approved, the loan amount will be disbursed directly to the dealer.
SBI Two Wheeler Loan Interest Rate and Charges
When it comes to availing a two-wheeler loan, it’s essential to understand the interest rates and charges associated with it. Let’s take a closer look at the interest rates and charges for SBI Two-Wheeler Loans:
SBI Two Wheeler Loan Interest Rate
The interest rate for SBI Two-Wheeler Loans starts at 11.83% per annum. However, the interest rate may vary based on the loan amount, repayment tenure, and credit score of the applicant.
SBI charges up to 3% of the loan amount as processing fees. The processing fees may vary based on the loan amount and other terms and conditions.
SBI Two-Wheeler Loan prepayment charges range from 3% to 10% of the outstanding principal. The prepayment charges depend on the prepayment period. For instance,
- prepayment is not allowed within three months of EMI repayment.
- From four to six months, the prepayment charge is 10% of the outstanding principal,
- from seven to twelve months, the prepayment charge is 6% of the outstanding principal,
- and from 13 to 24 months, the prepayment charge is 5% of the outstanding principal.
- For prepayment after 24 months, the prepayment charge is 3% of the outstanding principal.
|Interest Rate||Starts at 11.83% p.a.|
|Processing Fee||From 3% to 10% of the outstanding principal|
|Prepayment Charges Schedule||Within 4 to 6 months – 10% of principal outstanding|
Within 7 to 12 months – 6% of principal outstanding
13-24 months – 5% of principal outstanding
Post 24 months – 3% of principal outstanding
|Pre-payment Restrictions||Not allowed within three months of EMI repayment|
Advantages of SBI Two Wheeler Loans
SBI Two-Wheeler Loans come with several advantages that make them an attractive option for individuals looking to purchase a two-wheeler. Some of the benefits of SBI Two-Wheeler Loans include:
- Lower interest rates: SBI offers two-wheeler loans at attractive interest rates, which makes it a cost-effective option for individuals who wish to purchase a two-wheeler.
- Flexible repayment tenure: SBI Two-Wheeler Loans come with flexible repayment tenure options ranging from 12 to 60 months. This allows borrowers to choose a repayment tenure that suits their financial needs and repayment capabilities.
- Quick and hassle-free loan processing: SBI Two-Wheeler Loans have a simple and hassle-free application process. The loan processing is quick and efficient, ensuring that borrowers can get their loan disbursed in a timely manner.
Application Process: SBI Two Wheeler Loan Apply Online
Applying for a two-wheeler loan from SBI is a quick and easy process. Here are the steps you need to follow to apply for the loan:
Online Application Process
SBI offers an online application process for its two-wheeler loan. You can apply for the loan by following these simple steps:
- Visit the official website of SBI or log in to the YONO app.
- Click on the ‘Apply Now’ button for the two-wheeler loan.
- Fill in the required details such as personal information, employment details, and loan amount.
- Upload the necessary documents such as identity proof, address proof, and income proof.
- Review the details and submit the application.
Required Documents for SBI Two Wheeler Loan
The documents required for a two-wheeler loan from SBI are as follows:
- Identity proof such as PAN card, Aadhaar card, or passport
- Address proof such as driving license, voter ID, or utility bills
- Income proof such as salary slips, bank statements, or income tax returns
- Quotation for the vehicle from the dealer
Once you submit the loan application, SBI will process it and conduct a verification of the details provided. If everything is found to be in order, the loan will be approved, and the amount will be disbursed to the dealer.
Tips to Get Approved for SBI Two Wheeler Loan
Getting approved for a two-wheeler loan from SBI can be easy if you keep the following tips in mind:
Maintain a Good Credit Score
A good credit score is one of the most important factors that lenders consider while approving a loan. Make sure to maintain a good credit score by paying your bills on time and avoiding defaulting on any loans.
Have a Stable Source of Income
Lenders prefer borrowers who have a stable source of income. If you are employed, make sure to have a steady job for at least a few years before applying for a loan. If you are self-employed, ensure that you have a stable income stream.
Choose a Reputed Dealer
Choosing a reputed dealer for your two-wheeler purchase can also increase your chances of loan approval. SBI has a list of approved dealers, and it’s always advisable to choose one from the list.
In conclusion, SBI Two-Wheeler Loans are an excellent option for anyone looking to purchase a two-wheeler.
With lower interest rates, flexible repayment tenure, and quick processing, it is an attractive financing option. Additionally, the eligibility criteria are simple and the documentation required is minimal.
If you are looking to purchase a two-wheeler, do not hesitate to apply for an SBI Two-Wheeler Loan today! With competitive interest rates, flexible repayment options, and quick processing, it is the perfect financing solution.
FAQS (Frequently Asked Questions)
What are the eligibility criteria for availing an SBI two-wheeler loan in India?
The eligibility criteria for availing an SBI two-wheeler loan in India include being a minimum of 21 years old and maximum of 65 years old, having a steady source of income, and meeting SBI’s credit score requirements.
What is the maximum loan amount offered under SBI two-wheeler loan scheme in India?
The maximum loan amount offered under SBI two-wheeler loan scheme in India is up to 90% of the on-road price of the two-wheeler, subject to a maximum limit of Rs. 25 lakhs.
How can I apply for an SBI two-wheeler loan in India?
You can apply for an SBI two-wheeler loan in India through the bank’s official website or by visiting the nearest SBI branch. You can also apply through the YONO app.
What are the documents required to apply for an SBI two-wheeler loan in India?
The documents required to apply for an SBI two-wheeler loan in India include ID proof, address proof, income proof, bank statements, and documents related to the two-wheeler.
Can I prepay my SBI two-wheeler loan in India? If yes, what are the charges for prepayment?
Yes, you can prepay your SBI two-wheeler loan in India. The prepayment charges depend on the loan amount and the time of prepayment.
What is the interest rate for SBI two-wheeler loan in India?
The interest rate for SBI two-wheeler loan in India depends on the loan amount, repayment tenure, and the credit score of the borrower. As of 2023, it ranges from 9% to 11.5%.
How long is the repayment tenure for SBI two-wheeler loan in India?
The repayment tenure for SBI two-wheeler loan in India ranges from 12 months to 60 months.
Is it mandatory to have a guarantor to avail SBI two-wheeler loan in India?
No, it is not mandatory to have a guarantor to avail SBI two-wheeler loan in India.
What happens if I fail to repay my SBI two-wheeler loan in India?
If you fail to repay your SBI two-wheeler loan in India, the bank may take legal action against you and may also seize your two-wheeler to recover the outstanding amount.
Can I avail an SBI two-wheeler loan for a used vehicle in India?
Yes, you can avail an SBI two-wheeler loan for a used vehicle in India, subject to certain terms and conditions. The loan amount offered for a used vehicle may be lower than that offered for a new vehicle.