When purchasing a bike, you might want to check out two-wheeler loans that not only allow you to purchase your bike easily but also bring financial freedom. Given that they come with a simple application process along with basic lender requirements, it only gets easier to avail a bike loan for individuals across various income strata.
The two-wheeler loan eligibility and document requirements, while kept at a minimum, must be met for hassle-free processing and quick approval of the advance. Before applying, you must make sure that you have fulfilled all lender-based requirements for streamlined loan application processing. Let’s check out all eligibility and document-related details to keep you well-informed before you apply for the financing option.
Standard Eligibility Requirements for Bike Loans
While requirements related to two-wheeler loans may vary from one lender to another, the standard criteria are often similar. Here, we will take a look at the basic two-wheeler loan eligibility requirements one needs to fulfill for a successful application.
- Age: One must qualify within the minimum and maximum age limit as specified by the lender to apply.
- Income: He/she must also earn a minimum monthly income based on the city of residence irrespective of the occupation pursued.
- Residential status: Applicant must also be a resident citizen of India with a minimum 1 year of stability.
- Credit score: While minimum credit score is not a must-meet requirement as it is a secured advance, it is ideal to carry a credit score of 750 when applying for two-wheeler financing.
Apart from these, the lender selected may also require you to meet certain additional criteria to qualify for the advance. Thus, confirm the requirements with your selected lender and make sure to meet them before applying.
Some factors that impact two-wheeler loan eligibility apart from the points mentioned above include the following.
- Repayment capacity: While closely related to income, the repayment capacity of an individual is his/her periodic earnings less the recurring expenditures for that duration. A high repayment capacity more often than not invites favorable terms along with convenient approval of a two-wheeler loan.
- Outstanding credit: The current outstanding on the overall credit availed also impacts one’s eligibility for a bike loan. A higher loan outstanding would indicate limited capacity to meet repayment liability from any new credit, thus restricting his/her chances of availing new loans.
- Credit dependency: The overall dependency of an individual towards credit as a percentage of income is assessed by lenders to identify an applicant’s tendency towards credit consumption. It thus also outlines the risk involved to some extent in lending to the individual.
- Financial habits: Financial habits like timely repayment, utilization of available credit, types of loans availed, etc. allow lenders to take a peek into the financial stability of an individual and how well he/she can manage a new loan. It thus increases or decreases one’s chances to avail of new loans and advances, including bike loans.
Essential Paperwork Involved in Bike Loan Applications
Apart from two-wheeler loan eligibility criteria, one should also check out the documentation needed for the advance application. Following is a list of common documents needed to apply.
- Proof of identity like PAN card, Aadhaar card, Voter ID card, Passport, driving license, etc.
- Proof of address like Voter ID card, Aadhaar card, passport, ration card, utility bills, and the like.
- Depending on the occupation, income proof required can be either or more of bank account statements, salary slips, ITR filed, audited financial statements, etc.
Once you have met the two-wheeler loan eligibility and document requirements, you can move on to apply with your selected lender either online or offline. It is, however, suggested to go for online applications as they involve only a few hassle-free steps and can be made from home comfort.