Most of the middle-class borrowers cannot afford to make a lump-sum payment due to financial constraints, a Two Wheeler Loan allows them to pay monthly EMIs affordably. It’s critical to check your two-wheeler loan eligibility once you’ve decided to apply for one. Lenders are exceedingly careful and will only approve a loan after thoroughly examining the borrower’s repayment capacity. Because there has been a dramatic increase in the number of defaulters over time, thorough background checks are performed before the loan is disbursed.
To ensure that your loan application is not denied, you must have all the required documentation and state your specific source of income in order to receive prompt approval.
Eligibility for Bike Loan
What Criteria Influence the Eligibility for a Two Wheeler Loan?
How to Improve Your Eligibility for a Two Wheeler Loan
Required Documents for a Two Wheeler Loan
Supplementary Documents for Salaried Employees
Requirement of CIBIL Score to Get a Bike Loan
The table below compares the interest rates and processing costs charged by lenders in India, as well as the lengths of time they offer.
Bank of India 7.35% p.a. to 8.55% p.a. Rs.500 – Rs.10,000
Union Bank of India 7.40% p.a. to 10.50% p.a. NIL
Axis Bank 7.35% – 28.30% Up to 2.5% of the loan amount
L&T Finance 7.99% p.a. – 15.00% p.a. At L&T discretion
UCO Bank UCO float rate + 4.80% 1% of the loan amount
Bank of Baroda BRLLR + Strategic Premium + 4.00% i.e. 10.80% p.a. 2% of loan amount minimum Rs.1,000
The following are the standard eligibility conditions for two-wheeler loans:
At the time of applying for the loan, the loan applicant must be at least 18 years old, with a maximum age limit of 65 years.
To demonstrate residential stability, the applicant must have lived in the same house for at least one year.
Applicant must have worked in a solid position for at least one year or be self-employed with two years of IT returns.
The applicant must have a satisfactory CIBIL Credit Score from the credit bureaus.
A permanent phone number is required, as well as KYC and other necessary documentation.
Your eligibility for a two-wheeler loan is determined by variables such as your income, credit score, and existing financial responsibilities.
Credit rating:Your credit score is one of the most important variables that your lender considers when determining your eligibility. It’s a three-digit number that indicates whether or not you’ll be able to repay the loan on time. To qualify for a two-wheeler loan, you must have a credit score of at least 750.
Salary: Your eligibility for a two-wheeler loan is also determined by your income. Because a two-wheeler loan is unsecured, you must show that you have a steady source of income to your lender. A lower interest rate is also guaranteed with a bigger income.
Outstanding debts: If you have a lot of outstanding bills, it will affect your eligibility for a two-wheeler loan. You may not be offered a loan if your lender discovers that you have existing debts.
The recommendations will help you get a better deal on a two-wheeler loan:
Maintain a higher credit score: When applying for a two-wheeler loan, ensure that you have a credit score of at least 750.
Choose a longer loan term: A longer loan term allows the borrower to pay off his EMI over a longer period of time. When you choose a longer loan term, your two-wheeler loan eligibility increases.
Choose a shared loan: Your eligibility for a two-wheeler loan is increased if you have a co-applicant with a solid credit score.
Show other sources of income: Having alternative sources of income suggests that you will be able to repay the loan without any delays or defaults.
A list of documentation necessary for a bike loan is as follows:
Electoral Voter Identity Card
Latest Bank Passbook reflecting the current address
Salaried persons:
Employment or offer letter
Last six months bank statements and latest form 16
Last salary slips <45 Days
For loan processing, preserve both originals and photocopies of all essential papers.
The lender will process your two-wheeler loan application based on the given documentation, and you can anticipate a favorable loan approval.
A CIBIL score is required for a motorcycle loan. A CIBIL score ranges from 300 to 900 points and is determined by examining and accounting for your credit history, including credit card payments. The minimum CIBIL score for a bike loan is 750, which allows you to get a low-interest loan. A poor CIBIL score does not rule out the possibility of obtaining a bike loan. It merely increases the loan’s interest rate.
What is the maximum loan term for a bike?
The bike loan has a maximum term of 36 months, which makes it simple to divide into EMIs and repay the loan.
Is it feasible to pay off a two-wheeler loan in advance?
Yes, most banks and NBFCs allow you to pay off your loan early.
Is it necessary for me to offer collateral or security in order to obtain a two-wheeler loan?
A two-wheeler loan does not require any type of collateral or security.
What are the various options for paying the EMI on my two-wheeler loan?
Is there an advance EMI option?
Yes, Advance EMI is available from several banks and NBFCs.