The Green Ride: How to Finance an Eco-Friendly Two-Wheeler

The Green Ride: How to Finance an Eco-Friendly Two-Wheeler

Loans by Team Drivio | 25 Apr 2024

The process of financing environmentally friendly motorcycles through banks, NBFCs, and manufacturers is easy, and owners can qualify for government subsidies to make their purchases affordable. These days, most lenders offer motorcycle loans online, further simplifying the application and disbursal processes.

Are you thinking of financing environmentally friendly motorcycles through a bank or NBFC? At a time when motorcycle owners prioritise sustainability, reputed lenders provide attractive offers on EV loans. As you take a stride towards a greener future, let’s explore how you can get electric motorcycles financed by banks.

One common green ride finance eco-friendly two-wheeler option is to reach out to lenders or banks offering specialised loans for electric motorcycles. These loans often come with competitive interest rates, flexible repayment terms, and convenient application processes.

Some manufacturers and dealerships also offer in-house financing options for EVs. This brings you the opportunity to buy the desired model with ease.

In this guide, we will help you choose the right financing option for your electric bike as you make eco-conscious choices. 

Different Options for Financing Environmentally Friendly Motorcycles

Here are four popular options for financing environmentally friendly motorcycles.

Loans from banks

Leading banks are offering customised loans to finance eco-friendly bikes. Often, these loans are available at competitive rates of interest. Naturally, environmentally conscious consumers find an attractive financing option in these loan products.

Your creditworthiness largely determines the interest rates you qualify for. Generally, borrowers with a good credit score benefit from lower interest rates. Typically, loan tenures with reputed banks and NBFCs range from 1 to 7 years, offering adequate flexibility while you repay the loan.

While sanctioning EV loans for motorcycles, banks consider your age, income, employment stability, and credit history. While most banks offer loans to both salaried individuals and self-employed professionals, they require you to earn a minimum income to qualify for loans.

Thanks to the structured repayment plans that banks offer, you can plan your finances effectively.

Loans from NBFCs

 After banks, NBFCs happen to be the major source of funding for EV loans. These financial institutions offer flexible repayment options to suit the financial needs of borrowers. 

The key benefit of seeking motorcycle loans from NBFCs is the fast approval process and minimal documentation requirements.

Some NBFCs offer customized two-wheeler loans based on your requirements. This enables you to choose suitable repayment tenure to align the loan with your financial capacity. Overall, the convenience, speed, and customized loan offerings from NBFCs make them a prime choice for electric motorcycle owners.

Manufacturer financing

 Some brands manufacturing EVs offer financing options directly to consumers. These financing schemes may include special offers like zero or low down payments, attractive interest rates, and extended warranties. 

Getting your new electric bike financed from the manufacturer can be advantageous since it simplifies the purchasing process. You can complete the process of selecting the model and financing it at the same place. 

Besides, you may take advantage of exclusive deals and incentives that manufacturers offer from time to time.

Government schemes and subsidies

 The Indian government has come up with several subsidies for EV owners to promote a sustainable environment. The prime objective of these schemes is to mitigate the carbon footprint. 

For instance, electric bike owners can qualify for a subsidy of INR 10,000 under the EMPS 2024 scheme. While you get your loan from a trusted lender, these subsidies can make your purchase more cost-effective.

Besides, bike owners can check other subsidies, which are determined based on factors like battery capacity, type of vehicle, and emission levels. Depending on your demographics, the application process for government subsidies differs. Consumers can take advantage of these subsidies to ease up their two-wheeler buying process.

The Process of Financing Environmentally Friendly Motorcycles

We have discussed the process of financing environmentally friendly motorcycles in this section.

Documents needed

  • Your ID proof, including documents like passport, voter card, Aadhaar card, or driving license
  • Your address proof, including rental agreement, utility bill, or Aadhar card
  • Income proof, like bank statements, salary slips, IT returns, or Form 16 for salaried individuals and business financial statements, ITR, and GST returns for self-employed professionals.
  • Documents of the vehicle, like RC (vehicle registration certificate), insurance documents, and purchase invoice.
  • Other documents like PAN Card, passport-sized photograph, or proof of your down payment.

 Eligibility criteria

  • Typically, banks sanction two-wheeler loans to applicants aged between 21 and 65.
  • Both salaried individuals and self-employed professionals can apply for motorcycle loans.
  • Generally, banks offer two-wheeler loans to individuals with a minimum monthly salary of INR 10,000. For self-employed individuals, this requirement may be higher.
  • Typically, banks prefer lending to individuals with a credit score above 750. A healthy credit score enhances your chances of getting the loan approved. It can also help you qualify for lower interest rates.

 Online application process

  • Choose a lender: In the first place, take time to research and compare loan offers from different banks, NBFCs, or manufacturers.
  • Check eligibility: You can talk to your bank or use an online loan calculator on the lender’s website to know the amount you are eligible for.
  • Fill application form: Upload the necessary documents while filling out the application form with correct details.

Once the lender verifies your documents, they will carry out a credit check and accordingly approve the loan. Next, you will receive the details of loan terms like interest rates and loan tenure, after which the lender will disburse the amount. This process requires you to complete the formalities like signing the loan agreement.

Wrapping Up

If you prioritise eco-conscious choices, financing an electric bike or scooter is a viable option with different loan options available. Now that you know the different types of financing, you can choose the one that suits your financial stature and repayment capabilities.

While financing environmentally friendly motorcycles, don’t overlook government subsidies as these can help you make substantial savings. As you contribute to a sustainable future, make the most of the benefits while financing your new two-wheeler.