If you are planning to buy a two-wheeler anytime soon, you need to know about the loan State Bank of India (SBI) offers. There are plenty of options for two-wheelers in the market nowadays. From bikes to gearless scooters, companies are offering features at competitive prices. Some popular Indian two-wheeler brands are TVS, Bajaj  Auto, Honda, Hero, Mahindra, Suzuki, Yamaha and others. 

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While SBI is offering a two-wheeler loan on the purchase of new two-wheelers for scooter, motorcycle, moped and battery operated two-wheelers of reputed make. Here are the details like interest rates, the minimum income required, eligibility, maximum loan amount, documents required etc. 

1. Margin required: 25% of 'On Road Price' of the vehicle

2. Eligible Customers- Existing SBI customers under the following categories:

i. Permanent employees of State/ Central Govt, PSUs, Corporations, and Listed Pvt Sector companies maintaining salary accounts.

ii. Professionals/ self-employed & other IT assesses maintaining SB/CA/Time Deposit with satisfactory conduct for minimum 1 year.

iii. Persons engaged in Agriculture with SB/CA/Time Deposit maintaining satisfactory conduct for minimum 1 year.

iv. Existing borrower customers with satisfactory repayment history may be considered selectively.

3. Minimum Income Criteria:

Minimum Net Monthly Income- Rs 12,500 and Minimum Net AnnuaI Income- Rs 1,50,000

4. Maximum loan amount:

Minimum Rs 30,000, Maximum < Rs 2.50 lacs
(For Loan Amount > 2.50 lacs Super Bike Scheme)

For salaried: The maximum loan amount that can be granted would be restricted to 6 times the net monthly income of salaried persons (i.e., net of all deductions including actual monthly tax deductions at source).

For others: The maximum loan amount that can be granted would be restricted to 50% of the net annual income as per ITR after netting off depreciation and repayment of all existing loans

5. SBI Two-Wheeler Loan Interest rate (w.e.f. 10th May, 2019):

The interest rate is 9.25% above 1 year MCLR i.e. 17.70% p.a.

6. The following papers are to be submitted along with loan application:

i) Statement of Bank account of the borrower for last 6 months.

ii) 2 Passport size photographs of borrower/guarantor (s).

iii) Signature verification from Bank’s record.

iv) A copy of passport /voters ID card/PAN card.

v) Proof of residence by way of tax receipts, telephone bill, electricity bill or any other document that comply with the regulatory and/or KYC requirements.

vi) Latest salary-slip showing all deductions and TDS certificate-Form 16 in case of salaried persons.

vii) Copy of Income Tax Return for last two financial years, duly acknowledged by ITO for professionals, self-employed and others.IT Return is not mandatory in case of agriculturists.

viii) Proof of official address for non-salaried individuals.

However, one should carefully read all the terms and conditions before applying for loan. Loan should be applied after setting up a budget, interest rate comparison, repayment module etc.