How to check the eligibility criteria for a two-wheeler loan? – Jammu Kashmir Latest News | Tourism
Where once buying a two-wheeler meant spending years trying to save enough to finance its cost, today it has become exceptionally easy, thanks to the myriad of two-wheeler financing options available. However, this increase in the availability of bicycle loans has been accompanied by an increase in the number of cases of fraud. To protect against potential losses, lenders have instituted a strict list of eligibility criteria for two-wheeled loans that must be met by applicants before a loan can be sanctioned.
The two-wheeler loan eligibility is usually described on the website of all banks and lenders. You can browse this list to check if you qualify for a bike loan. Here is a list of the most common eligibility criteria used by lenders to approve bike loans.
Most lenders have certain age criteria in place to assess an applicant’s eligibility for a bike loan. To apply for a two-wheeler loan, you must be at least 21 years old. In other words, minors are not allowed to apply for a two-wheeler funding opportunity. Some lenders may allow applications from people aged 18 and over, but in such cases you would need a guarantor to vouch for you. The ceiling for two-wheeler loan applications is set at 65 by most lenders.
Whether you are employed or self-employed, you will also need to ensure that your salary or annual income meets the basic requirements set out by your lender. Although this figure varies from lender to lender, it is usually capped at a very nominal rate. A higher monthly income can also qualify you for a higher loan amount as it gives the lender confidence that you will repay the amount within the stipulated time.
Good credit score
Your credit score or CIBIL plays a vital role in determining your eligibility for a bike loan. Ideally, you should have a credit score above 750. High credit scores can help you get two-wheeled loans at a lower interest rate because they present you as a credible and reliable borrower. Alternatively, if you have a low credit score, you can still apply for a bike loanbut you may have to pay higher interest for the same.
If you have ever applied for a bank loan and repaid it on time, you have successfully established a good credit profile. This will help you meet the eligibility criteria for a two-wheeler loan. Lenders will have access to your repayment history as well as current loan charges to determine your eligibility for a new bike loan. If you already have significant EMI obligations to fulfill, you may qualify for a lesser loan amount.
You will need to prove a stable source of income to be eligible for a bike loan. Although salaried and self-employed people can apply for – and obtain – financing for two-wheelers, they must prove their income stability or work experience to the lender. If you are a salaried person, you will only be eligible for the loan if you have worked at your current place of employment for at least one year. On the other hand, if you are self-employed, you will have to prove to the lender that you have been operating the business for at least two years.
Lenders need to make sure that you will not run away once the loan amount is approved. To do this, they have established certain residential stability criteria. Under this eligibility clause, you can only benefit from a bicycle loan if you have lived at your current address for at least one year.
Ability to provide necessary KYC documents
Successfully meeting the eligibility criteria for a two-wheeler loan is not enough, as one must prove this eligibility to the lender using valid documents. Thus, you must also have the list of KYC documents and proof of income listed by the lender. The general list of documents that must be provided to prove eligibility includes your Aadhaar card, voter card, passport, driver’s license, ITR, bank statements and payslips.
While these are the general eligibility criteria for a bike loan, their specifics may vary from lender to lender. It is recommended to carefully assess the eligibility criteria for a bike loan before applying to benefit from instant approval and quick disbursement of the loan. Most lender and loan aggregator websites allow you to check your eligibility online in seconds. You can use their EMI calculators to check if you qualify for the loan, the amount you qualify for, the monthly payments offered, and the stated repayment term.