A two-wheeler is convenient and easy to ride on busy Indian roads, making it a great fit for Indians. While earlier, individuals had to spend years buying a two-wheeler. Today numerous two-wheeler financing options are available. In this digital era, loan disbursal is faster and smoother. Transactions are safe and secure. Interest rates are competitive. Renowned non-banking financial companies (NBFCs) offer special two-wheeler loan schemes at affordable lending rates, starting at as low as 4.99%.
If you are planning to buy a bike or scooter, check the bike loan eligibility explained below.
Know if you are Eligible for a Two-wheeler Loan
The minimum age of the applicant should be 18 years at the time of application and 65 years at the end of the loan term.
2. Annual Income
Lenders consider your income to check if you are capable of repaying the entire loan amount within the stipulated time. If the lender is convinced of your income level, it can offer you a two-wheeler loan at a lower lending rate comparatively. Renowned NBFCs can approve a two-wheeler loan with an annual income of Rs.96000 for a salaried or annual profit of Rs. 1,20,000 for self-employed individuals.
3. Good Repayment History and Credit Score
An individual should have a sound credit history to maintain a high credit score and secure a two-wheeler loan at low-interest rates Your high credit score with a spotless credit history reflects your good creditworthiness and how well you have treated your previous debts. A high credit score indicates a reduced risk for lenders. Therefore, if you have repaid all your financial obligations on time, the lender can offer you a reasonably low interest on a two-wheeler loan.
Your credit score is based on the following factors primarily:
- The number of loans taken in the past.
- The total amount of debts for loan, credit cards, etc.
- Timely payment for EMIs.
4. Residential Stability
Under the eligibility criteria, one parameter is residential stability. Lending institutions need to ensure that the borrower won’t flee once the loan is disbursed. Typically, you are eligible for a two-wheeler loan if you have resided in your present city for a certain period, say one year.
5. Ability to Furnish the Necessary Documents
Loan applicants need to furnish the necessary documents listed below:
- Identity Proof: The borrower must have any of these documents as ID proof – Aadhar card, Passport, Voter ID, PAN card or driving license.
- Income Proof: For income proof, self-employed persons must submit the latest income tax returns (ITR). Salaried individuals will need to submit the previous three months’ salary slips, bank statements, or Form 16.
- Residence Proof: For address proof, submit any of these documents – ID Proof with the permanent address, Telephone/Electricity/Water Bill/Property Tax receipt.
Thus, meet the easy bike loan eligibility and get the freedom of riding your own bike or scooter. To get started, you need to share your income proof and KYC documents with the lender and wait for your application to be processed. Individuals can use a two wheeler loan EMI calculator provided by lenders to make a well-informed decision.