I don’t have a PAN card. Can I still get a two-wheeler loan?

Among the documents required for a two-wheeler finance, PAN card is a must. This document
is only one among the many identify check documents. PAN card cannot be substituted by
passport, driving license, company ID card, ration card, voters ID, a credit card with photo, etc.
Availing a loan lthrough loan aggregators can suffice your financial needs with a PAN card. It is
mandate that any loan is to be approved over PAN details. Moreover, Buddy Loan encourages
the availers to keep their PAN card handy while applying for a loan.
Address proof documents
The following address proof documents are required:
• Electricity bill – Should have the name of the applicant. This means that the applicant
has to be the house owner.
• Gas Connection Bills – Will have the name of the applicant.
• Sale Deed – Is a document that describes the proceeds of a sale. It includes the name
of the purchaser and seller. The purchaser is the borrower.
• Property Purchase Document – Will have property purchase details. Similar to sale
deed, but describing more of the purchase details.
• LIC Policy – Will have the name of the policyholder. The policyholder is the borrower.

Income proof documents
The following are the income proof documents that are required:
• For salaried government or private company employees, their latest salary slip.
• For business owners, their latest Income Tax Return documents are required.
Fees and allied charges for two-wheeler loans.
• The percentage of charge for processing the loan is 3% of the corpus of the loan.
• Charges for documentation are 3% of the corpus of the loan amount.
• Pre-payment charges vary. If foreclosed within six months, a pre-payment or foreclosure
charge of 10% of the outstanding loan amount will apply.
• If foreclosure is after six months, 6% of the outstanding loan principal amount applies.
• Any foreclosure after two years of the commencement of a two-wheeler finance loan will
attract only 3% of the loan outstanding.

• If an EMI is overdue, a charge of 2.5% on the outstanding EMI is levied. It is an accrued
interest. Even if missed by one day, the charge is levied. Care has to taken not to miss the
payment.
• If a loan has been applied and cancelled after being approved, there are generally no
loan cancellation fees levied.
• Two-wheeler loans come only in two categories – superbike loans and two-wheeler
loans.
Conclusion
Two-wheeler auto finance is a very convenient way to get your dream bike at very affordable
rates. The repayment tenure is flexible. Some banks allow borrowers to choose their EMI
amount. It is only easier through a loan aggregator, Buddy Loan. Most applications are made
online. A paperless process and a transparent one make these loan products very convenient.
So decide on that dream bike and don’t delay any longer to start riding.

How is EMI calculated on my Two Wheeler Loan at Buddy Loan?

The method to calculate EMI for a two-wheeler loan at Buddy Loan is no different from that of a personal loan.
Instant Two-wheeler loan online comes under the category of a personal loan. All terms and conditions of a personal loan are also applicable for a two-wheeler loan except that the purpose of this personal loan is to buy a two-wheeler. Interest rates are also comparable to a regular personal loan.
EMI calculation formula
E = P x R x (1 + R) ^ n / (1 + R) ^ n – 1
Where P is the two-wheeler principal amount.
R is the rate of interest per month.
^ is to the power of
n is the loan tenure in months
How is EMI calculated for a bike loan?
 The total bike loan amount is taken.
 The interest rate per annum is divided by 12 to get the interest rate per month.
 The number of months in the loan tenure is taken. A 5 year loan period means 60
months.
Why use an auto loan calculator before taking a loan?
 A bike loan calculator calculates the EMI amount, which helps you decide whether or not
to avail a two-wheeler loan.
 If the EMI is more than 50% of the salary, consider reducing the loan amount by
increasing down-payment or initial payment.
Eligibility criteria for a two-wheeler loan
 The lower age limit is at least 18 years. In some cases, it is 21 years of age. The upper
age limit is generally 65 years of age.
 Gross total income requirement varies as per metro city. The average is Rs. 20000 per
month for salaried individuals and for business owners or self-employed professionals.
Documents required
 Proof of address. It could be in the form of AADHAR card, PAN card, passport, rental
agreement, electricity bill, etc.
 Income proof – salary certificates, ITR details of the past two years, Form 16, bank
statement of the past six months, sale bills, business ownership title details.
 Age proof – Voter’s ID, passport
 Photographs – 2 passport size photographs
When not to take a two-wheeler loan?
 Sometimes when having a bad credit score, an application for a two-wheeler loan can
get rejected, and the rejection is also mentioned in the credit report. To avoid this, don’t
apply for a loan until the credit score is at a decent level.

 Two-wheeler loans are expensive. If you already have a bike, consider selling the bike,
and then thinking of purchasing a new one using a two-wheeler loan. Reducing your
debt burden at all times makes logical sense.

How can I get a Two Wheeler Loan at Buddy Loan?

First, check your expendable income. If, your expendable income cannot accumulate to a
substantial amount to cover the expense of the bike loan within a couple of months, consider
taking a two-wheeler loan. Buddy Loan, one of the financial aggregators have vivid option for
loan tenures starting at an interest rate of 11.99% p.a. for a two-wheeler loan. You could explore
more!
Calculate your EMI
 Choose the bike you want to purchase.
 Use the online EMI calculator to calculate your EMI
 If the calculated EMI is within 50% of your salary, then consider taking the loan;
otherwise, think twice.
 A better option is to save money, make a substantial down-payment, and reduce the
debt burden when taking a Instant two-wheeler loan online. This way, your EMI is well within 50% of your salary.
Check your Two wheeler loan eligibility
Most bank sites have a loan eligibility calculator online. Here you enter your loan requirement.
Provide your details such as PAN number, salary details, tenure, etc. An SMS is sent to your
registered mobile number, or an email is sent to your registered email ID with your eligibility
details. The bank verifies your credit score, age at loan maturity, existing loans, cheque bounce
details, etc. to calculate your eligible details.
Apply online
 After getting your eligibility details, make an online application. Scanned and signed
copies of PAN card, AADHAR card, and such KYC documents can be uploaded.
 Provide details of the two-wheeler such as RTO location, type/make of the bike, year of
manufacture, price of the bike, etc.
 Applications are approved with in 24 -48 hours. Money is disbursed in a maximum time-
frame of 3 days.
 In some cases, a bank representative can come to your office or home to take physical
copies of the documents.
Difference between a two-wheeler loan and an auto loan
Both are the same; depending on the context, an auto loan can refer to car loans or four-
wheeler loans only. However, even two-wheeler loans come under auto/automobile loans so
they can be called auto loans too.
Features of two-wheeler loans
 The loan amount ranges from Rs. 1000 to Rs. 15,00,000
 Loan tenure is a minimum of 6 months to a maximum of 60 months
 Interest rates starting at 11.99% p.a. can help you avail early
 No-cost EMI options are available.
 100% of the cost of the purchase option is available.
 Processing is easy and transparent. Constant updates are provided to the applicant.
 Flexi EMI options allow applicants to choose their EMI instead of the bank choosing a
set of EMI options for them. However, terms and conditions apply even in this process.