Two-wheelers are a popular transport option that many rely on to economically navigate through the hustle-bustle of traffic. Moreover, the easy availability of a bike loan makes two-wheelers even more accessible. In fact, most lenders now offer 100% of the bike value as a loan, which can help ease your financial burden.
However, the quantum depends on how well you meet the lender's bike loan eligibility requirements. These eligibility criteria assess your loan terms, such as loan amount, tenure, and interest. Many lenders have standard and simple eligibility criteria that allow you to get an instant bike loan.
Read on to know some common bike loan eligibility parameters and document requirements to get easy and quick financing.
Documents Required for a Bike Loan
With minimal documentation and a simplified loan application process, getting a bike loan is a lot easier now. By keeping these documents ready and assessing your eligibility before applying, you can instantly access these funds, easily .
The list of documents for availing of a loan from any bank or NBFC may be common, as they include proof of your identity, employment, income, and address proof documents.
Here are a few common documents required for a bike loan:
1) Proof of Identification: These documents state the applicant's identity, which includes the following:
· Aadhaar card
· Voter's ID card
· Driver's licence
· Passport
· PAN card
· Other government-issued identity cards or document
2) Proof of Address: These documents furnish proof of your residential address.
· Aadhaar card
· Voter's ID card
· Driver's licence
· Passport
· Telephone, electricity, gas bill, or other utility bills
3) Proof of Employment: Using this document, lenders can assess your employment status and check if you meet the required bike loan eligibility criteria. You may need to submit an issued company ID card, or get a letter of acknowledgment from your employer.
4) Proof of Income: This proof assures the lender that you have had a stable income for the last six months, which includes salary slips, Form 16 or ITR.
5) Application form duly signed by you along with the self-attested copies of supporting documents
6) Latest passport-size photographs
While ensuring the submission of the right documents is important, it is also essential to understand the eligibility criteria. Meeting these requirements can help ensure easier approvals.
Eligibility for a Two-Wheeler Loan Here are the common eligibility criteria for a bike loan :
1. Minimum Age: If you are above the age of 21 years, you can apply for a bike loan with most lenders. However, a few others may grant loans if you are between 18-21 years of age. In such cases, you need to have a permanent driver's licence and apply with a guarantor.
2. Maximum Age: Lenders set a maximum age of 60 years when the loan term ends. Some lenders may also set 65 years old as the upper limit for bike loan eligibility. Furthermore, the maximum age also depends on your employment type.
3. Minimum Income: To get a bike loan from any bank or NBFC, you need to have a minimum income of ₹10,000 per month.
4. Minimum Years of Employment: Lenders require a minimum of six months to 1 year of employment.
5. Type of Employment: Both self-employed and salaried individuals are eligible for bike loans. However, interest rates may differ based on your employment type.
6. Credit or CIBIL score: A majority of lenders prefer a CIBIL score over 750.
Factors Affecting Your Bike Loan Eligibility
· Age of the Applicant: Lenders consider the age of loan applicants, as it helps them determine the time they have to repay their dues, before retirement.
· Minimum Income of the Applicant: With a higher income, you can get higher financing up to 100% of your two-wheeler amount.
· Credit history: Lenders rely on the credit report and assess it before providing loans. With a credit score above 750, you are eligible for a better loan offer.
· City of Residence: If you live in a metro city, your interest rate will be higher than the rate offered to a borrower living in a non-metro city.
· Existing Debt: Having multiple existing credit accounts can decrease your chances of loan approval, as the risk of lending increases.
· Down Payment Amount: Down payment is the initial amount you pay upfront when you purchase a two-wheeler. You can get a lower interest rate on your bike loan with a higher down payment amount.
Check Bike Loan Eligibility Using an EMI CalculatorBike loan eligibility criteria can differ across lenders. However, being aware of a few common parameters can help you get loans with ease. Use a bike loan EMI calculator to help you choose the right lender.
Simply enter the loan amount, tenure and applicable interest rate to compute your monthly instalments with ease. This not only helps you check your eligibility but also aids in planning your finances better.
Tips to Improve Eligibility for a Bike Loan
To get a better loan offer on your bike loan, you must have higher eligibility. Follow these tips to improve your bike loan eligibility.
· Maintaining a higher credit or CIBIL score improves your eligibility for a better loan offer
· Clearing any existing debts helps avail bike loans at lower interest rates
· Making a maximum down payment helps increase your chances of loan approval and getting a lower interest rate
· Checking the income eligibility criteria and complying with the same also increases your loan approval chances
· Having a stable work experience of over 6 months can help you avail loans hassle free
Now that you are aware of certain crucial pointers, keep them in mind before you choose a lender. This will keep your borrowing costs affordable and avoid overburdening your finances. Remember to check your bike loan eligibility before applying to avoid rejection and get the two-wheeler you want without any compromise.
