1. First Time Buyer's Section:
The two wheeler industry has shown an immense development in the past few years. With the ever increasing fuel prices, two wheelers provide a cheaper alternative from cars. They are easy to maintain and maneuver. Two wheelers are a feasible solution to reduce the pressure on the public transport system.

Two wheelers can be classified into three categories:

• Motorcycles
• Scooters
• Mopeds and Scooty

Motorcycles are preferable for their economic fuel consumption and low maintenance. Generally they have a four stroke engine for better fuel economy and low pollution level. There are various schemes of motorcycle loan in India.

Scooters have been showing a downward trend in the past few years. However new models of scooters like the Kinetic Blaze puts out an 11.6 bhp from a 165.12 cc engine have added a new dimension to scooters in this country. Low interest scooter finance is a viable proposition.

Mopeds and Scooty
Mopeds and Scooty have a two stroke engine and lower engine displacement than the motorcycles and the scooters. Low weight two wheelers are more popular among women and kids. These set of two wheelers lack in power but are economical and have very low maintenance costs.

Private and public sector banks are providing two wheeler loans these days, right from mopeds to motorbikes. These bike loans are available at competitive rates and affordable prices to attract every genre of customers. Banks are even offering online motorcycle finance for client benefits. On the spot loan offers are given by various banks and other flexible schemes to suit the needs and pockets of customers.

2. The basic requirements before applying for Two-Wheeler loan

• Minimum age of 21 years;
• Maximum age at the end of loan tenure to be 60 years for Salaried Individuals and 65 years for Self-Employed individuals
• Minimum gross salary of 75000/- per annum, the amount may vary depending on the total loan required.

3. The Process
Application can be done directly to the Banks for two wheeler loans. Online two wheeler loan forms are available with most of the banks. There is no processing fee but some banks do charge a minimal processing fee for used two wheelers.

The various steps can be summarized as follows:

• Application
• Approval of the loan
• Deposit of Margin Money at the Dealership
• Disbursement of the loan amount

The loan processing is quite simple and can be approved on the same day if proper documents are furnished on time.

4. Repayment Option
Two - Wheeler Loans are repayable in Equated Monthly Installments (EMI) through Post Dated Cheques (PDC). Some banks also offer Auto Debit facility to the customers. The installment amount is debited from their account every month. ECS (electronic clearance system) options are also available.

5. Types of interest rates for the loans
Monthly reducing balance interest depends on the down payment and the finance option chosen. There are various schemes to choose from available on different models and brands.

6. Security
Usually only the vehicle registration papers bear the hypothecation in favor of the bank until complete repayment of the loan.

7. Documents Required
Usually the following documents are required at the time of application of the loan:

• Identity proof
• Residence proof
• Income proof

Primary documents that are required for processing of the loan are applicants Identity Proof, Residence Proof and Income Proof.

8. Tenure
The bike loan can be paid in equated monthly installments (EMI). The loan can also be paid through post-dated cheques (PDC) or through Standing Instructions or through ECS to debit your Bank account through ECS with the EMI amount. Any one of the following repayment options ranging from 6 to 36 months.