Two-Wheeler Loan Top-Up: How to Get Additional Funds

Abhishek has an ongoing two-wheeler loan. He has used the amount to purchase a two-wheeler of his choice. Now, Abhishek’s sister is getting married in a couple of months. To finance her sister’s wedding, he needs additional funds. 

In such a situation, Abhishek can opt for a top-up on his existing bike loan. A top-up loan is an additional credit you can avail on your existing loan. Unlike regular bike loans, there are no end-use restrictions for top-up loans. 

In this article, we will guide you on how to avail additional funds via two wheeler loan top-up. Keep reading to understand the concept of a loan top-up, eligibility criteria, and the documents required to avail such. 

Understanding Two-Wheeler Loan Top-Up

When you apply for a motorcycle loan top-up, you are essentially requesting additional funds on top of your existing bike loan amount. This facility is available to borrowers who have maintained a good repayment track record and have met certain eligibility criteria set by the bank. You can use the amount for any purpose like renovating your home, funding your vacation, personal commitments, etc.

The bank will evaluate your credit history, repayment behaviour, and existing bike loan details before approving the top-up loan. If approved, you'll receive the additional funds, which can be used for any purpose. It's important to note that the interest rate and repayment terms for the top-up loan may differ from your original bike loan.

Eligibility Criteria for Two-Wheeler Loan 

The eligibility criteria may vary across banks. However, we have laid out a generic eligibility criteria requirement. 

• You should be an Indian citizen aged between 21 and 60 years
• You should have a stable income
• You should have resided at the same address for more than one year
• A good repayment track record, with no instances of cheque bounce in the preceding year
• Declaration of any pre-existing debt to assess your repayment capacity

Interest Rate of Two-Wheeler Loan Top-Up

Interest rate varies across banks. Generally, the interest rate for two-wheeler loan top-up is lower than personal loans.

Application Process and Documents Required for Bike Loan Top-Up

To apply for a two-wheeler loan top-up, you will need to submit certain documents along with your application. These documents may vary slightly among banks but generally include:

• KYC documents for identification and address verification
• Income proof such as salary certificates or business income proof for self-employed individuals
• Duly filed ITR returns for the past three years
• Top-up loan application form
• Bank account statements
• Business address proof (for self-employed individuals)
• Statement of personal assets and liabilities
• Additional documents as requested by the bank