What is the Process of Buying a Bike on EMI/Instalment?
What is the Process of Buying a Bike on EMI/Instalment?
Owning a bike can be a necessity or a dream for many. While using a bike may be affordable, arranging the finances to get a new one may prove to be a little challenging. To make this more accessible, financial institutions such as ICICI Bank offer convenient credit options that allow customers to buy a bike on Equated Monthly Instalments (EMIs). If you are thinking of funding your next bike through EMIs, this blog is for you. It will serve as a comprehensive guide, walking you through the process of purchasing a bike on EMI with ICICI Bank. Additionally, you will understand the benefits of using a bike EMI calculator with a down payment and know more about ICICI Bank's Two-Wheeler finance offerings.
Bike EMI Calculator with Down Payment
To begin the ride towards your next bike, it's important to understand the concept of using a bike EMI calculator with a down payment. This free online tool will help you estimate your monthly instalments and plan your finances accordingly. Here is how it works:
Access the Bike EMI Calculator:
Visit ICICI Bank's website and navigate to the bike loan section. Look for the EMI calculator tool, which is available on the loan page. ‘Click’ to use the calculator.
Enter Loan Details:
Fill in the required information, such as the loan amount, interest rate and loan tenure. This can be done by simply scrolling from left to right and vice versa. Additionally, if you are looking to make a down payment, subtract that amount from the on-road price of the bike in your city. This way, you will only have to deal with the calculations pertaining to the amount of money you are going to borrow, not the full cost of the vehicle. The larger the down payment, the lower the loan and of course lower EMIs over a shorter period of time. If you are looking at 100% financing, ICICI Bank offers 100% funding for Bike Loans, if you are eligible.
After entering the necessary details, click on the "Calculate" button. The EMI calculator will provide you with the estimated monthly instalment amount based on the loan parameters you filled in. This will help you determine the affordability of the loan and assist you in charting out your budget over the repayment tenure.
Now that you have understood the concept of a bike EMI calculator, let us explore the step-by-step process of buying a bike on EMI with ICICI Bank:
Do Your Research and Choose a Bike
If you have got your heart set on a particular bike already, skip this. If not, begin by going around to showrooms, test-ride bikes in your budget, read online reviews, watch popular YouTube auto channels and then select the bike model that meets all your expectations. Consider factors such as price, features, brand reputation and maintenance costs. Once you have identified the bike you want to purchase, move on to the next step.
Check Eligibility and Documentation
You will find the eligibility criteria for two-wheeler loans on the websites of most financial institutions, you can check yours with ICICI Bank by clicking here. You can also use financial apps like iMobile Pay or visit the nearest Bank branch to check your eligibility for a two-wheeler loan. Ensure you fulfil the criteria regarding age, income, employment stability, credit score and other requirements specified by the bank. Prepare the necessary documents which may include identity proof, address proof, income proof, bank statements and photographs.
Apply for the Loan
Once you meet the eligibility criteria and have the required documents, you can proceed with the loan application process. You can apply for a bike loan with ICICI Bank online through our website, iMobile Pay app or by visiting an ICICI Bank Branch. Fill in the application form, provide the necessary details and submit the required documents. If you are a select customer already, you may be eligible for an Insta Bike Loan with minimal documentation and instant disbursal in a few clicks.
Loan Processing and Approval
After submitting the loan application, ICICI Bank will initiate the loan processing. Our representatives will verify your application, assess your creditworthiness and evaluate the bike's value. If your application meets the bank's requirement and all documentation is in order, your loan will be approved.
Down Payment and Loan Disbursement
Once your loan is approved, you will need to make the down payment (if required and agreed) during the loan application process. This will be done at the dealership where you are buying your bike. The down payment reduces the loan amount. The remaining balance will be disbursed by ICICI Bank directly to the bike dealer or seller’s bank account. Ensure that you have the necessary funds for the down payment and any additional charges or fees that may apply. There is a special processing fee for select customers of ICICI Bank do check if you are from that category.
Registration and Insurance
After the loan disbursement, you can complete the registration process for your bike. Submit the required documents, such as proof of address, identity and insurance, to the Regional Transport Office (RTO). Additionally, it is important to obtain two-wheeler insurance to protect yourself and your bike against unforeseen events.
Repayment of EMIs
Once your bike purchase is complete, you will need to repay the loan through monthly EMIs. The EMI amount will be as per the terms agreed upon during the loan application process. Ensure that you have sufficient funds in your bank account on the designated EMI due dates to avoid any penalties or additional charges.
These are the gears you need to go through for getting your next bike with ease.
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