Yes. You heard it right. It is certainly possible....not in a theoretical way but practically....

I recently opted for a 2012 model Yamaha FZ1. I bought it on loan. Details are as follows :

I first approached Bank of India, Pune and enquired whether they provide loans for purchasing second hand two wheelers. They replied yes.
Then I submitted -
1. Copy of 3 years Income Tax Returns
2. 2 Photographs
3. Copy of Address Proof (Passport / ration card / landline bill)
4. Copy of Identity Proof (PAN card / driving licence)
5. Completed application form.

At this time, I had not finalised which bike to purchase. I knew the amount till which I wanted to buy a bike and asked bank to check my income / liabilities and confirm whether they can provide the loan to the extend I wanted. (Not that I wanted much but given the bleak outlook of my income.....just wanted to be sure )

I submitted my application around 11 am...called them up at 4.30 pm on same day to enquire.....The concerned officer told me that I can get the desired amount and should he sanction the loan.......I replied YES.....While on call, he pressed <Enter> on his comp and voila.....loan was sanctioned.

Next day, got the loan agreement franking done and submitted them to the bank.....signed all the relevant papers....took possession of sanction letter.

Please note that till this time, I had not finalised which bike to purchase.....Difficult for you to identify a bike and hold it till bank sanctions your loan.

Fortified with the sanction letter, I searched around and found a sweet deal of a 2012 FZ1 with only 2200 km on speedo. Yamaha dealer himself was selling that bike. Fixed up an appointment for next day and turned up at his place....saw the bike, documents etc....Got contact of Registered valuer approved by bank....asked his person to come down to the showroom....paid him Rs.1500 cash as valuation charges. (He couriered written valuation report on the same day)

Bike was in absolute stock, mint, scratchless condition. Still SMSed the bike number to couple of friends who confirmed that the bike was never repaired (as per yamaha service network record) and no insurance was ever claimed (as per insurance company records).....All this was achieved in 15 minutes of me landing up at the showroom. Now there was no stopping me from closing the deal....or was it?

I had not ridden the bike till now but looking at its condition and feedback received, decided to close the deal.The Yamaha dealer was opening a new Nissan showroom on the same day and was getting frantic calls from his family to turn up for pooja. Told the dealer to go ahead for pooja and I returned back to Pune.

Next day called him up and after haggling a bit, closed the deal....transferred 1 lakh as token amount to my Bank of India saving account and then transferred it to the dealer account. The logic behind this transfer was to generate a record in Bank of India books that I had paid this amount out of my required margin (though I wanted a loan for lesser amount than they had sanctioned)....By evening, the dealer confirmed payment receipt and told me to come down whenever possible to close the deal.

I was busy in work for next couple of days so could not go to Mumbai to take delivery. Dealer was willing to send the bike across to Pune but I did not want anyone else to ride the bike. After couple of days, told Bank of India to transfer required funds to the dealer.... they did that and dealer confirmed that he had received payment.

Next day, hitched a ride with some friends and landed up at the dealership. Formalities were completed in next 15 minutes....information about various features took a bit longer but I was ready to go within an hour of landing there.

Returned riding the bike…me and my friends took turns to ride it. It was absolute pleasure.

Went to Bank of India branch next day with sweets and showed them the bike, handed over original receipts to bank.

End of story….beginning of EMI…..

The criteria for second hand bike purchase are –

1. Vehicle has to be less than 3 years old
2. The margin money will be min. 30%
3. Repayment will be max 3 years.

I got the loan at 11.25% daily reducing interest rate. On request, bank even waived off processing fee. BTW, I do not have even a single business relationship with Bank of India. I only have a saving account with them with an average balance of 1000 in it.

The reason behind this long story is to show how easy it is to get loans from nationalized banks. Don’t fall in the trap of other finance companies.