What is the Process of Buying a Bike on EMI/Instalment?

Owning a bike can be a necessity for some people and a dream for others. While using a bike might be an affordable option, arranging the finances to purchase one can be a little challenging. To make bike purchase more accessible, financial institutions such as ICICI Bank offer convenient loans that allow you to buy a bike on Equated Monthly Instalments (EMIs). If you are thinking of funding your bike through EMIs, this blog post is for you. It will serve as a comprehensive guide, walking you through the process of purchasing a bike on EMI with ICICI Bank.

Bike Loan EMI Calculator

This free online tool will help you estimate your monthly instalments (EMIs) of your Bike Loan and plan your finances accordingly. Here is how it works:

1. Access the Bike Loan EMI Calculator: Visit ICICI Bank's website and navigate to the bike loan section. Look for the EMI calculator.

2. Enter Loan Details: Fill in the required information, such as the loan amount, interest rate and loan tenure. If you are planning to make a down payment, subtract that amount from the on-road price of the bike in your city. This way, the calculator will show 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– which means lower EMIs to be paid over a shorter period of time. If you cannot pay a down payment and need 100% financing, ICICI Bank offers 100% funding for Bike Loans to eligible customers.

3. Calculate EMI: After entering the necessary details, click on the ‘Calculate’ button. The EMI Calculator will show the estimated amount of your EMIs 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 how a Bike Loan EMI calculator can help you, 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 already got your heart set on a particular bike, skip this step. If not, begin by reading online reviews and visiting bike showrooms to shortlist bikes that fulfil your wishlist criteria and fit your budget. Next, test-ride your shortlisted bikes. Finally, 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 those of ICICI Bank by clicking here. You can also visit any ICICI Bank Branch to check your eligibility. Ensure that you fulfil the criteria regarding age, income, employment stability, credit score and other requirements specified by the Bank. Keep all necessary documents ready- these can include identity proof, address proof, income proof, bank statements and photographs.

Check the Interest Rate

The interest rate of your Two-Wheeler Loan directly impacts your monthly EMI. ICICI Bank offers competitive interest rates based on your profile and loan details. Before finalising your loan, check the applicable bike loan interest rate to understand how it affects your EMI and total repayment amount.

Apply for the Loan

Once you meet the eligibility criteria and have the required documents ready, you can proceed with the loan application process. You can apply for a Two-Wheeler Loan with ICICI Bank through our website or the iMobile app or by visiting any Branch. Fill in the application form, provide the necessary details and submit the required documents. If you are an existing ICICI Bank customer and fulfil certain criteria, you might be eligible for an Instant Two-Wheeler Loan with minimal documentation and quick disbursement in just a few clicks.

Loan Processing and Approval

After your loan application is submitted, it will be assessed by ICICI Bank. Our representatives will verify your application, assess your creditworthiness and evaluate the bike's value. If your application meets the Bank's requirements 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). This will be done at the dealership where you are buying your bike. The down payment reduces the loan amount. The balance amount will be disbursed by ICICI Bank directly to the bike dealer’s 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, so do check if you belong to 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 payment dates to avoid any penalties or additional charges.

These are the gears you need to go through for getting your dream bike with ease. Happy riding!